Consider This AI Agent Stock Over C3.ai
Key Points
Over the next decade, the global market for decision-making AI agents could multiply by a factor of more than 25 to a value of $215 billion.
C3.ai is a player in that market, but its sales are slowing.
SoundHound AI grew its revenues by 99% in 2025.
- 10 stocks we like better than SoundHound AI ›
In September, artificial intelligence (AI) enterprise company C3.ai (NYSE: AI) announced that it was launching an agentic AI product.
"Each AI agent in C3 AI Agentic Process Automation is given an objective together with constraints, instructions, and memory, and uses known data, tools, and business knowledge to achieve that objective. Workflows can run on demand, be triggered by events, or operate on a schedule," the company's announcement said.
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Based on its revenue outlook, though, it doesn't look like this innovation will be a game-changer for C3.ai anytime soon.
As such, if you're looking for investments in the agentic AI space, you may want to consider an alternative.
Image source: Getty Images.
Still figuring things out
We're still in the early innings of the agentic AI era, but the market for this technology is expected to explode over the next several years. Precedence Research forecasts that it will grow from an $8 billion market in 2026 to a $215 billion market by 2035.
Because they are early to this game, companies like C3.ai are currently unprofitable. That's not surprising, but as a shareholder, you don't want to see a company's revenue falling while it's in the red -- and that's what's happening with C3.ai.
Its fiscal 2026 guidance for revenue of $246.7 million to $250.7 million is well below its fiscal 2025 total of around $389 million. Those pressures led the company to launch a restructuring plan. In short, it's going to be a challenging time ahead for C3.ai.
That's why I'd rather own SoundHound AI (NASDAQ: SOUN) instead.
AI agents in action
While C3.ai is trying to find its footing, SoundHound AI is expanding. You can find its AI agents being used to handle a variety of tasks, ranging from taking orders at Panda Express to answering questions about your car's tire pressure.
More companies are recognizing the value SoundHound AI offers, as its voice AI platform can handle an array of routine customer interactions, freeing up human workers to focus on higher-value tasks.
Speaking to that demand, it closed a record number of enterprise deals in Q4. Among them were deals with a global smart TV manufacturer, a global Japanese insurance company, and a U.S. multinational telecommunications conglomerate -- reflecting the broad range of use cases for technology.
In 2025, revenue rose by 99% to roughly $169 million,and that growth is expected to continue at a steady pace; management forecasts that the top line will land between $225 million and $260 million in 2026.
Like C3.ai, SoundHound AI isn't profitable and remains a high-risk stock.
With that being said, when evaluating investable opportunities in AI stocks, I'd rather consider the company with rising demand and growing revenues than the one that's in the middle of restructuring in response to a sales decline.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
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