C3.ai Faces Growth Struggles But Eyes Generative AI Boost

C3.ai's business has faced pressure recently due to declining growth stock valuations and moderating AI expectations, although generative AI may provide a boost.

C3.ai has a fairly generic technology platform and its business model transition is leading to more customer wins, albeit smaller deals.

Revenue has been flat for 2 years due to the macro environment and business model changes, but growth should reaccelerate as the transition matures.

Pilot projects and investments in sales, marketing and R&D are weighing on margins, which should improve somewhat with growth.

Valuation still looks high given C3.ai's weak value proposition and inability to efficiently land new customers and expand spend.