Artificial intelligence could indeed fuel the next revolution for companies and investors. The challenge today is knowing who the long-term winners will be. C3.ai released its quarterly results last week. Market reaction is a bit confusing. The company seems to be on track. So, what is it they need to do in order to rise above the AI noise, chaos and confusion? How can they be seen and heard as an industry leader?
C3.ai CEO and Chairman Tom Siebel was a guest with Nicole Pettalides of the Schwab Network, formerly the Ameritrade Network. Next, Nicole invited me on the show to discuss what is happening with C3.ai and to a larger extent, the entire AI sector.
C3.ai started by offering Enterprise Artificial Intelligence when it started in 2009. It became a public company in 2020.
C3.ai appearance on Schwab Network
AI is the catch phrase under which is an entire industry with many different segments. That makes it difficult to compare performance from one AI company to another. It all depends which category each company competes in and who they compete with.
First, Artificial Intelligence remains one of the biggest, most important, rapidly growing and always changing new sectors we have ever seen.
Second, AI is not new. It has been around for many decades already in different stages.
Third, there are many different growth waves in AI, and they all operate under their own unique way.
AI has started its next chapter of growth and change
Over decades, AI has gone through many ups and downs. Today, it is in the early pages of the next chapter in the big growth wave.
Parts of this next growth wave started with the OpenAI ChatGPT a year and a half ago. Other parts and other companies have been with us for a long time already.
So, it is important to recognize that while AI is now in the spotlight, only parts are actually new.
IBM Watson saw AI growth, then crested and fell during one decade
Example: do you remember IBM Watson? They burst onto the scene more than a decade ago. They played on the Jeopardy game show, astounded American’s, grew through the years in size, scope and power, then they ultimately stumbled.
I attended the IBM World of Watson event in Las Vegas at their peak, and the show was astounding. Then it all slipped through their fingers. Today, IBM Watson is just another competitor and is no longer on the cutting edge in the AI conversation like Nvidia, OpenAI and countless others.
IBM Watson was and is potentially a powerful AI player but made some very significant mistakes with regards to marketing and public relations strategy.
Pull the camera back to get a long-term, historic perspective of AI
It is very difficult to predict with accuracy the direction of the AI industry for the longer term.
It is important to pull the camera back and get a long-term, big-picture overview of the AI space.
While it has been in the spotlight over the past year and sounds like a brand-new technology in a brand-new sector… it is not new. And it is not simple.
So, what is AI?
Understand there are many different sectors of the AI game today. Sectors like Machine Learning, Deep Learning, Natural Language Processing, Computer Vision, and Data Science.
There are also various segments including areas like Enterprise AI, GenAI, ChatGPT and countless others.
What to get more confused? There are many segments like computer vision, robotics, fuzzy logic, machine learning, neural networks, deep learning, language processing and so much more.
Plus, AI types like Narrow AI, Artificial Narrow Intelligence, General AI, Super AI, Reactive machines, Limited Memory, Theory of mind and Self-aware.
All of this is under the moniker of AI. Can you now see why AI is so confusing to so many investors, workers, executives, the media, participants and even Board of Directors, in this new game?
Who is C3.ai, what AI sectors are they in and how are they doing?
C3.ai is a company that plays in this game. They are not a brand spanking new company. They have been around for a while. And the leadership including the CEO and other top executives all seem to come from good AI stock.
They see the future more clearly than most. They are building a company to solve many AI problems faced by countless companies.
They had a great quarter and a great year and looking forward they look like real potential winners in this ever-changing space.
They are heading in the right direction.
Why are investors confused about C3.ai
That being said, there may be a problem. The world of marketing must be mastered. And I am not sure they have a solid grasp on this important growth opportunity and challenge.
As I have been saying for decades, it takes more than the right company with the right technology and the right executives at the right time to become a long-lasting success story in any segment.
What may be causing angst in the marketplace and investor community is only few have any idea who and what C3.ai really is.
Sure, we know they are an AI company, but it seems there are a million of them.
Some are important and have a huge potential for growth and industry importance going forward.
C3.ai faces real growth challenge and opportunity
C3.ai may be a player in this important group. However, most do not realize that mixed in with all the noise and chaos.
Know that every success story needs to be understood. And in today’s world of loud noise, conflicting claims, confusing technology and general buzz, which drowns out most, every company needs to be seen and heard.
Every successful company needs to have an angle. They need to punch their way onto the map. To punch their way through the loud and chaotic noise level. To be seen and heard.
Over time, there have been many companies with brilliant ideas, who simply did not get noticed and understood. Some of these were acquired and some ultimately failed.
So, how can C3.ai break through the noise?
C3.ai needs to strengthen marketing and PR to assure long-term success
I think they need to up-their-game with regards to marketing and public relations. They need to find many new ways to punch their way onto the map. They need to be understood by the marketplace.
That is one of the most important items they need to focus on and get right, if they really want to become a key player in the world of Artificial Intelligence.
Today, there are many players in the AI space. Many are big-time, AI leaders like Nvidia and AMD. There are also countless smaller and mid-size companies in the space.
And all are shouting and clamoring for attention.
Some will grow to become powerful in the space. Others may struggle going forward. Still, others will come and go.
C3.ai is a solid AI company, but needs to educate the market
They have a solid idea. They have solid management. The AI marketplace is explosive with growth. That being said, they need to educate the marketplace on who they are.
C3.ai needs to punch their way onto the map. It is no longer enough just to be an AI company. Every company claims the same thing.
Today, the marketplace has evolved and going forward it needs to understand who and what every company is. Who they compete with. If they create a new segment. How they stack up with competitors in their sector. How they will be one of the winners long-term, and so on.
This is the area where C3.ai needs to get stronger if they want to be successful for the long-term. The marketplace does not always get it right on their own. They need help. C3.ai needs to provide that help.
Remember the age-old question. If a tree falls and no one is there to hear it, does it make a sound?
