Property listing website Rightmove has seen its shares plummet after revealing plans to step up investment in artificial intelligence (AI).

Rightmove cut its profit growth forecasts for next year to reflect plans for higher investment in AI as well as other changes intended to increase returns.

The company’s chief executive, Johan Svanstrom, said AI was “becoming absolutely central” to the running of the business and its plans for the future.

But investors were less enthusiastic, and Rightmove’s shares had sunk by more than a quarter at one point on Friday.

Rightmove announced plans to invest £60m over the next three years and a large part of this investment will focus on AI.

“We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers,” Mr Svanstrom said.

The company said it aimed to boost annual revenue growth to more than 10% by 2030.

However, it also projected a operating profit growth of 3% to 5% in 2026, which is lower than its forecast of 9% growth this year.

Rightmove is planning for its AI investment to pay off in the next three years and said it expects its operating profit to rebound after 2028.

Mr Svanstrom said he was confident the investment would “create an even stronger platform and higher-growth business over time”.

But shares in the company plunged by as much as 28% in early trade on Friday, although they recovered some ground later to stand 13% lower.

“Investing for future growth is not a bad thing but the scale of the market’s negative reaction implies real scepticism about its decision to put so much money into AI,” said Russ Mould, investment director at AJ Bell.

“It’s possible to see how AI might help Rightmove operate more efficiently, make greater use of its increasing amounts of data and enhance user experience on the site,” he added.

“However, there is clearly concern that Rightmove is jumping on the bandwagon in dialling up its AI spending.”