Stock Exchange boss urged to calm nerves over risk of AI

The boss of London Stock Exchange Group is under pressure to reassure investors as it reels from the threat of artificial intelligence and demands from a US activist.

David Schwimmer will face questions over his strategy when he posts full-year results on Thursday following a 33 per cent slump in the share price over the past 12 months.

Analysts said the American executive, who has run the City institution since 2018, should come out fighting to win over sceptics. LSEG has been caught up in a global sell-off of stocks deemed to be at risk from AI.

The shares fell nearly 13 per cent in a single day early this month after the release of an AI-powered legal tool by Anthropic sparked fears that the technology could disrupt LSEG’s data and analytics business.

Fighting talk: David Schwimmer (inset) is under pressure to reassure investors as the London Stock Exchange Group reels from the threat of artificial intelligence

The company is also facing calls from activist Elliott Investment Management to launch a £5billion share buyback and a full review of its operations – sparking speculation parts of the business could be sold. It is thought LSEG’s 51 per cent stake in New York-listed bond trading platform Tradeweb Markets is seen as a potential way of raising cash.

Richard Hunter, head of markets at broker Interactive Investor, said ‘it will be a tough sell’ for Schwimmer as he faces investors this week.

Garry White, chief investment commentator at Charles Stanley, said: ‘AI tools from Anthropic and others have spooked shareholders into thinking automated systems could cut out LSEG’s subscription‑based data model. Schwimmer needs to hammer home a simple point: AI agents cannot just help themselves to LSEG’s datasets.

‘Access still requires paying customers, and the depth and quality of LSEG’s data will only become more valuable as AI spreads. He must redefine AI as a tailwind, not a threat.’

White said Schwimmer ‘must puncture the idea that the sell-off reflects a structural flaw’ and is a ‘wobble not a business model in retreat’.

Russ Mould at AJ Bell said: ‘The company may need to assuage fears that AI is a threat to its data-analytics businesses and prove the technology represents an opportunity instead, while a fresh share buyback could be one way of sending confidence to the market, too.’