RWS Holdings (AIM:RWS) slumped by more than 18% as it warned revenues at the language translation specialist had fallen by 2% this year.
Shares have been under pressure since the launch of generative AI pioneer ChatGPT on fears its document translation speciality will be overtaken by bots in the near future.
RWS is developing its own AI programmes and said client retention and satisfaction remained high in language services while its Language Weaver product had won its largest-ever Cloud SaaS contract, though some clients were cutting back.
Ian El-Mokadem, chief executive, added: "We have continued to make positive progress with our medium-term strategy in the second half of the year, including our growth initiatives, pricing, transformation programmes and expanding our portfolio.
“This progress has helped to mitigate some of the effects of a challenging macroeconomic environment which has resulted in reduced activity in a number of our end markets.
“We believe that we have the range of AI-enabled solutions with the enterprise-grade security, quality, and privacy that clients are actively seeking.”
Shares fell 43.6p to 194.4p.