Figma, Canva Showing Growing Pains of AI Pivot

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Software companies have been at pains to flaunt the success of their AI products, as they seek to dispel investor fears that AI apps are threatening their existence. Two reports this week show that developing popular AI products is only half the challenge. 

Canva, the design software company popular among students and business owners, warned investors this week that its annual revenue growth would slow to 20%. The reason: it was tapping the brakes on a planned AI rollout expected to drive paying subscriptions—after demand had proved higher and more expensive to serve than anticipated. 

Then on Thursday, Figma said it expects a slowdown in revenue growth for the September quarter, to 36% from 48% in June. In its case, the publicly traded design software company suggested it’s still figuring out how to generate sales from new AI tools that are still in beta, or testing phases, or early in their release.