Analysis-Powerful new AI models knock the wind out of European adopter stocks

By Lucy Raitano

LONDON (Reuters) -A rout in shares of European companies embracing artificial intelligence deepened this week, as powerful new AI models raise questions about whether sectors from software to data analytics could find themselves overtaken by the technology.

European software stocks, including Germany’s SAP and France’s Dassault Systemes, tumbled on Tuesday as worries that AI will disrupt the software sector spread through the market. That followed a downgrade to U.S. rival Adobe on Monday by broker Melius Research.

Since mid-July, shares in markets and data group LSEG, UK software firm Sage, and French IT consulting group Capgemini have dropped 14.4%, 10.8% and 12.3% respectively.

Such companies – dubbed AI adopters by analysts – are investing heavily in the technology