Is AI (C3.ai, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AI is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its interest income of 9.30% exceeds the ≤5% limit. Its cash & securities ratio of 52.48% exceeds the ≤33% threshold.

C3.ai is a prominent player in the enterprise artificial intelligence sector, providing a suite of software- as-a-service (SaaS) applications that help large organizations accelerate their digital transformation. Their flagship C3 AI Application Platform allows companies to design and deploy AI applications at scale, while products like C3 AI Ex Machina and C3 AI CRM offer no-code data analysis and industry-specific customer management tools. They serve diverse sectors, including energy, financial services, and defense , positioning themselves as a foundational layer for industrial AI adoption. For Muslim investors, C3.ai is currently classified as Not Halal (Haram) based on AAOIFI standards, despite passing the initial business activity screening . While the technology they build is permissible, the company's financial structure does not meet Shariah requirements. Specifically, the company fails the liquidity screen because its cash and interest-bearing securities make up 52.5% of its market capitalization, well above the 33% maximum allowed for asset-backed companies. From a financial perspective, C3. ai demonstrates extreme fiscal conservatism, holding virtually no debt (0.3% of market cap), which is usually a positive sign for Islamic investors. However, this large cash pile generates significant interest income—accounting for 9.30% of their total revenue—which directly violates the 5% threshold for non-operating interest income. Until the company deploys this capital into operating assets or revenue growth outpaces its interest earnings, this stock remains non-compliant for Shariah-conscious portfolios. C3.ai, Inc. operates in the Technology sector under the Information Technology Services industry and is headquartered in Redwood City, CA, US. The company is led by CEO Stephen Ehikian and employs approximately 891 people.

AI was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. AI passed 2 of these 4 screens.

AI was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.