Investors are currently evaluating whether the global sell-off in software stocks this week was overdone and whether the companies involved can weather the storm brought about by artificial intelligence (AI). While no definitive conclusion has been reached yet, it is clear that the advancement of AI is set to induce market volatility. On Tuesday, the S&P 500 Software & Services Index took a sharp nosedive of nearly 4%, continued its downward trajectory on Wednesday, and extended its losing streak to six consecutive trading days, resulting in a staggering loss of approximately $830 billion in market value. This sell-off was precipitated by the introduction of a new legal tool by AI company Anthropic's Claude, which heightened investor concerns that the success of large-scale AI models would disrupt multiple industries. Some analysts argue that these large models lack core professional data, and view this sell-off as a risk-averse reaction from investors. The plunge in software stocks set off a chain reaction, dragging down the broader market and causing related tech stocks to close at lower levels. While some analysts and experts believe it is premature to conclude that software and data companies are on the brink of a downturn, others contend that the sell-off in software stocks has been overdone.