Subject category:
Knowledge, Information and Communication Systems Management
Published by:
Amity Research Centers
Length: 7 pages
Data source: Published sources
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Abstract
Founded in 2016, Builder.ai was an Artificial Intelligence (AI) startup headquartered in London. 'Natasha', the digital assistant of its platform called 'Builder Studio', assured a seamless AI-driven user experience. The startup claimed that its platform developed software and apps which were up to six times faster and up to 70% cheaper than 'traditional' human workforce. Over the years, it had raised funds from several investors, including technology behemoth Microsoft, through different funding rounds. Apparently, the startup appeared to be one of the big success stories during the AI regime. However, it was not so in reality. In fact, Builder.ai had falsely overstated its projected sales in 2024 to creditors by 300%. Finally, in early May of 2025, Builder.ai had confirmed its plans to file for bankruptcy due to various reasons. Against this background, can the incident at Builder.ai be a wakeup call for other companies resorting to such unsustainable business practices?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2025.Geographical setting
Region:
World/global
Featured company
Builder.ai
Type:
Privately held
Industry:
Software development; AI
Subject category:
Knowledge, Information and Communication Systems Management
Published by:
Amity Research Centers
Length: 7 pages
Data source: Published sources
About
Abstract
Founded in 2016, Builder.ai was an Artificial Intelligence (AI) startup headquartered in London. 'Natasha', the digital assistant of its platform called 'Builder Studio', assured a seamless AI-driven user experience. The startup claimed that its platform developed software and apps which were up to six times faster and up to 70% cheaper than 'traditional' human workforce. Over the years, it had raised funds from several investors, including technology behemoth Microsoft, through different funding rounds. Apparently, the startup appeared to be one of the big success stories during the AI regime. However, it was not so in reality. In fact, Builder.ai had falsely overstated its projected sales in 2024 to creditors by 300%. Finally, in early May of 2025, Builder.ai had confirmed its plans to file for bankruptcy due to various reasons. Against this background, can the incident at Builder.ai be a wakeup call for other companies resorting to such unsustainable business practices?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2025.Geographical setting
Region:
World/global
Featured company
Builder.ai
Type:
Privately held
Industry:
Software development; AI
Related
Subject category:
Knowledge, Information and Communication Systems Management
Published by:
Amity Research Centers
Length: 7 pages
Data source: Published sources