C3.ai's C3 Generative AI Gains Rapid Adoption Across Industries

2023-09-08

C3.ai, a leading AI company, held its earning call meeting featuring Chairman and CEO, Tom Siebel, and other participants. The meeting concluded with a message of gratitude and a commitment to provide future updates.

The highlight of the meeting was the introduction and success of C3 Generative AI by C3.ai. This innovative offering combines the C3.ai platform with large language models, enabling immediate interaction with data, documents, and signals related to enterprise domains. The goal of C3 Generative AI is to optimize productivity, monitor systems, forecast demand, and maximize efficiency through the power of AI.

Since its release in March 2023, C3 Generative AI has gained significant adoption and customer success. In the last quarter alone, C3.ai closed eight new agreements for C3 Generative AI across various industries, including agriculture, consumer packaged goods, defense, intelligence, manufacturing, government, oil and gas, and utilities. This demonstrates the broad applicability and appeal of the product.

Furthermore, C3.ai has already closed 12 generative AI agreements and has a pipeline of over 140 qualified generative AI enterprise opportunities in less than six months. This indicates a strong market demand for C3 Generative AI and suggests that it has the potential to become a major revenue driver for the company.

To meet this market demand, C3.ai has announced the immediate availability of C3 Generative AI, showcasing the company's commitment to capitalize on the product's success and expand its customer base.

The introduction and success of C3 Generative AI by C3.ai mark a significant development in the AI industry. This technology has the potential to revolutionize productivity and efficiency in various sectors and has already garnered significant interest and adoption from customers across different industries.

During the meeting, the company discussed key drivers of its business, including customer success, lead generation, brand awareness, and the development and promotion of generative AI solutions. C3.ai aims to balance investment between customer success and lead generation, with a focus on branding and lead generation activities. The company plans to establish its brand in the enterprise AI market and communicate its position as the first-to-market with 28 enterprise generative AI solutions. Additionally, C3.ai is committed to making its customers successful with pilot projects, expecting to become increasingly efficient over time and leading to improved gross margins. The pricing model for their AI solutions is based on a per CPU or GPU hour basis. The company also highlighted the success of its pilot program and expressed confidence in its progress.

Looking ahead, the company's outlook for the quarter and year is positive. C3.ai has a strong brand, a growing partner ecosystem, and a satisfied customer base. The first quarter showed an increase in revenue and a healthy gross profit margin. However, there may be some short-term pressure on gross margin due to higher costs associated with pilot projects. Overall, the company has been successful in managing expenses and operations.

The call meeting included key executives and analysts, such as Tom Siebel, Chairman and CEO, Juho Parkkinen, CFO, and various analysts from firms like JMP Securities, Needham and Company, Canaccord Genuity, Morgan Stanley, and KeyBanc Capital Markets. The meeting provided an opportunity for participants to ask questions and receive updates from Tom Siebel and Juho Parkkinen. The company expressed satisfaction with the outcome of the call and hinted at exciting developments to be reported at the end of the second quarter.