Shares in several major FTSE 100 technology and data companies rallied sharply, with investors responding to a notable shift in tone from leading artificial intelligence developers.
Sage (LSE: SGE), RELX, Experian, and London Stock Exchange Group (LSEG) climbed 6.3%, 5.7%, 4%, and 4.2% respectively, marking some of the largest single-day gains across the index.
The common thread linking all four companies is their exposure to software and data services, a sector that has faced persistent pressure from the rapid advancement of AI over the past 18 months.
Concerns had been growing that AI agents capable of replacing multiple employees could reduce demand for software licences and seats, directly threatening the revenue models of companies like Sage.
The technology has also lowered barriers to entry in software development, raising the prospect of increased competition eroding the market positions of established players.
However, sentiment shifted over the weekend after the chief executives of both Anthropic and OpenAI appeared to signal that AI development may need to slow down significantly.
Anthropic CEO Dario Amodei stated: “Left unchecked, it could outrun our ability to understand and control these systems, and so must be pursued very carefully, if at all.”
The comments align with growing regulatory momentum in the UK, where a cross-party group of MPs has called for AI-related legislation to address potential risks posed by the technology.
Sage, which provides accounting, financial, HR, and payroll technology for millions of small- and mid-sized businesses, has long argued that AI disruption in its core markets has been overstated.
CEO Steve Hare has previously called the idea that a third-party AI agent can replace chief financial officers and most accountants “completely ludicrous,” adding: “That is one of the most ridiculous things I have ever heard in my career.”
The company’s argument rests on the precision required in financial and compliance work, where errors can result in serious tax and legal liabilities, leaving little tolerance for the kind of inaccuracies AI systems can produce.
Despite its scepticism about AI replacing core functions, Sage continues to deepen AI-powered capabilities across its platform, including agents that operate inside the financial ledger to detect unusual transactions.
In the first nine months of FY26, Sage reported revenue growth of 11% to £2.06bn, with North America delivering an even stronger 14% increase, suggesting the business remains in solid health.
Customer churn has remained very stable, and the company’s margins are expected to gradually improve as it benefits from deploying AI internally across its own operations.
The stock’s forward price-to-earnings ratio currently sits at approximately 17.5, still a notable discount to its 10-year average, while the forecast dividend yield stands at around 2.3%.
The broader rally across FTSE 100 software names reflects a market reassessment of just how quickly and aggressively AI might disrupt established technology businesses in the near term.
With regulatory frameworks likely to constrain the pace of AI deployment, incumbents with deep compliance expertise and trusted customer relationships may find their competitive moats more durable than previously feared.