Anthropic Claude Code Modernization of COBOL a Threat to IBM as AI Tool Challenges Legacy Systems Business Causing a 13.2% Stock Plummet
According to CNBC, IBM shares fell 13.2 percent to 223.35 dollars, marking the company’s steepest single day decline in more than two decades. The drop followed an announcement by artificial intelligence firm Anthropic, which introduced its Claude Code tool designed to modernize COBOL systems.
COBOL is a programming language that has powered banking networks, airline systems, government databases and financial institutions for more than 50 years. IBM has long generated significant revenue from maintaining and upgrading these legacy systems.
Anthropic claims its AI powered tool can streamline the process of updating COBOL code, potentially reducing the need for extensive manual modernization work. Investors reacted sharply to the news, viewing the development as a possible threat to IBM’s traditional services business.
While artificial intelligence driven automation may improve efficiency across industries, the announcement has raised questions about how established technology firms will adapt to rapid AI advancements.
