Shares of the content and tech company Thomson Reuters Corp (NASDAQ: TRI) traded nearly 12% higher today, as of 11:42 a.m. ET. In a press release, the company announced that 1 million law professionals now use its artificial intelligence-powered legal solution, CoCounsel.
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Thomson Reuters’ stock has been hammered over the past year, down nearly 49%. The company has been part of the software sell-off, driven by concerns that AI will be able to recreate software solutions much more quickly and using far fewer resources.
Today, Thomson Reuters announced that its AI legal assistant CoCounsel is gaining traction. The tool can be used to conduct deeper research on legal matters, accelerate litigation work, and integrate with programs frequently used by legal professionals, such as Westlaw, Practical Law, and Microsoft 365.
In the press release, Thomson Reuters said CoCounsel taps into content refined over 175 years and leans on “expert-developed validation logic.”
“Professionals are not deciding whether to use AI anymore. They are deciding which AI they trust when their reputation and their clients’ data are on the line,” Thomson Reuters President and CEO Steve Hasker said in a statement, stressing that customer data remains protected.
Interestingly, Thomson Reuters shares fell sharply after Anthropic announced new AI tools for legal professionals earlier this month. Now, the stock is rising, due to the success of one of its AI solutions.
Investors will be tempted to buy the dip in software stocks, but it’s important to look for those that will adapt to changing times. Thomson Reuters is clearly adapting. However, the stock currently trades around 27 times trailing earnings.
That’s well below its five-year average. The company grew adjusted earnings 4% in 2025 and had organic revenue growth of 7%. It’s guiding for solid growth in 2026, but investors will need to determine the right multiple in a world where AI may break down barriers to entry.
I’m not entirely sure what that is in this new world, so it could take time for the market to digest companies in this position.
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