AI Fear Grips U.S. Sectors from Software to Real Estate
Concerns about artificial intelligence (AI) are shaking multiple sectors of the U.S. economy, from software to real estate. This panic began when Anthropic introduced a legal AI plug-in, leading to widespread sell-offs. As AI advances, investors are increasingly worried about its potential to disrupt various industries.
Impact on the Software Sector
The software sector has seen substantial losses. The S&P 500 Software & Services index has lost approximately $2 trillion in value since its peak in October 2025, with half of that decline occurring in just two weeks. Companies like Atlassian and Intuit have experienced significant drops in share prices—down 47% and 40%, respectively.
- Salesforce: down 30%
- Adobe: down 25%
- CrowdStrike: down 12%
Investors are concerned that rapid AI developments may undermine traditional business models that have been lucrative for years, leading to a sell-first mentality in the market.
Sector-Wide Selloff
The software sector’s struggles have also affected private equity and alternative asset managers. Firms like Ares and Blackstone have seen their shares drop between 13% and 24% due to fears of exposure to software-related debt.
Financial and Legal Services Hit Hard
The finance industry is not immune to these fears. Wealth management firm Altruist’s launch of AI tax planning features has triggered declines in brokerage shares. Several notable firms, including LPL Financial and Charles Schwab, fell more than 7% in just one day.
Data analytics companies also faced significant share price declines. S&P Global forecast a challenging earnings outlook, leading to a reduction of over 25% in its stock this February.
Real Estate Industry Under Pressure
Commercial real estate stocks took a hit as investors shifted away from high-fee, labor-intensive business models perceived as vulnerable to AI disruption. Major players like CBRE Group and Jones Lang LaSalle experienced declines of around 12% each.
Insurance Sector Faces AI Disruption
Insurance stocks dropped sharply after Insurify launched an AI-enabled comparison tool. The S&P 500 insurance index recorded its largest single-day loss since October, falling 3.9%. Significant drops were recorded across various brokers, including a 15% decline for Willis Towers Watson this week.
Logistics and Trucking Sectors Experience Decline
Even the trucking and logistics sectors are feeling the impact of AI anxiety. Stocks like Landstar System dropped significantly after news of AI’s potential to enhance freight operations surfaced. The Dow Jones Transportation Average fell by 4.4% as a result.
Conclusion
The fear surrounding AI adoption is creating a tumultuous environment for numerous U.S. sectors, leading to sharp declines in stock values. As investors remain wary, the long-term implications for industries ranging from software to logistics remain uncertain.
