The rise of AI technology is invoking fear not just among employees but also among companies, with many businesses reassessing their models due to competition from AI. Major Indian IT firms such as TCS, Wipro, Infosys, and HCL are reportedly wary of the disruptive potential of AI technologies. The narrative is being shaped by widespread concerns about job security and the shifting landscape of business practices in the wake of AI integration.

A notable example is a San Francisco-based entrepreneur who claims that AI has devastated her startup, which focuses on digital advertising. Ira Bodnar, the founder of a startup named Rise, stated that a recent update to Anthropic's cloud version has led to an alarming drop in her sales, plummeting from a steady 70% to just 20% in a matter of hours. This drastic change showcases the immediate impact that AI developments can have on smaller firms.

Rise offers tools that help users create, track, and manage digital advertising campaigns across platforms like Google and Meta. However, Bodnar highlighted how new features introduced in the latest AI updates pose direct threats to her business operations. The situation reflects a broader trend in the tech industry, where innovations in AI are increasingly becoming double-edged swords, generating both opportunities and existential challenges for startups like Rise.