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Why Builder.ai's Failure Proves There's No Shortcut to High-Quality Digital Products

Latest
6
min read
The recent collapse of Builder.ai has made headlines across the tech world. But for those of us who build high-quality, scalable digital products day in and day out, it's not exactly surprising.
Untapped
Putting your business in the worlds pocket
Published
May 27, 2025

For years, we’ve been helping businesses navigate the digital landscape, and we’ve said it time and time again: building great apps, websites, and platforms isn’t easy.

And if someone is telling you otherwise, you should probably be asking more questions.

The Allure of Low-Code and App Builders

There’s no doubt that low-code tools, app builders, and AI-powered dev solutions serve a purpose. They allow startups and small teams to prototype quickly, get to market faster, and build simple, templated solutions without breaking the bank. In the same way Squarespace is a solid tool for building a clean, functional website without hiring a web designer, app builders can help non-technical founders get started.

They also open the door for experimentation. If you want to validate an idea or test a new feature before committing real budget, a drag-and-drop tool can offer a quick and dirty version to work with. There’s value in that. But only if you're aware of the limitations.

The problem comes when businesses mistake these tools for long-term solutions. It’s easy to get caught up in the pitch: “Launch your dream app in weeks, no coding required.” But behind the slick marketing and fancy dashboards, the reality is often very different.

What Happens When You Hit the Limits?

That’s where businesses like Builder.ai fall short. They sold a dream: custom apps at a fraction of the cost, delivered faster, powered by AI. But building genuinely custom software is complex. It involves:

  • Understanding your unique business model
  • Mapping out user journeys and edge cases
  • Designing experiences that are intuitive and brand-aligned
  • Building back-end systems that scale
  • Iterating based on feedback and performance
  • Ensuring security and compliance
  • Maintaining quality across devices, platforms, and browsers

None of that fits neatly into a drag-and-drop interface.

As businesses grow and customer expectations evolve, those "simple" builds quickly become bottlenecks. Teams realise they can't add the functionality they need. User experience suffers. Performance drops. And suddenly, they're forced to rebuild from scratch - this time properly.

The Real Cost of a Shortcut

Here’s the truth: if your product is mission-critical, core to your brand, or expected to scale, you can’t afford to cut corners. A templated app might get you live quickly, but it can hold you back just as fast. And when the template can't flex to fit your vision, you're stuck. Or worse, rebuilding from scratch.

These limitations don’t just create technical debt, they create strategic risk. Businesses spend time and money on a solution that was never going to support their goals. It’s not just a sunk cost issue. It’s an opportunity cost issue. Time spent rebuilding is time not spent growing.

It’s why we compare app builders to Squarespace. Great if you want something that looks like 90% of everything out there. But if you want to stand out, to push boundaries, innovate, lead, you need a custom solution.

The Myth of "Plug-and-Play" Innovation

The tech industry loves a silver bullet. Every few years, a new tool promises to change everything: no-code builders, AI-powered dev platforms, modular systems. They all claim to make product development faster, cheaper, more accessible.

And to some extent, they do. But true innovation has never been plug-and-play. The products that change markets, the ones that stick in people’s minds, are built with care, intention, and craft. They’re not generated. They’re designed, tested, broken, rebuilt, iterated, and polished.

Your digital product is an extension of your brand. It should feel like you. It should scale with you. It should grow alongside your customers. That doesn't happen by accident, and it certainly doesn't happen with a tool that treats every business the same.

What Businesses Really Need

What ambitious businesses need isn’t a magic tool. It’s a dedicated team. Digital experts who understand the whole picture. Designers, developers, researchers, strategists, and project leads who:

  • Ask the right questions
  • Challenge your assumptions
  • Design around your users
  • Build for growth
  • Test, refine, and optimise constantly

That’s what we do at Untapped. We build digital products that are robust, considered, and designed to grow with you. Not shortcuts. Not workarounds. Real solutions.

Our approach is built around clarity and collaboration. We don’t just execute a brief. We work with you to understand your business, uncover opportunities, and create solutions that move the needle. Whether you’re a startup, scaleup, or established brand, we help you build the kind of product that stands out for all the right reasons.

Final Thought

The failure of Builder.ai isn’t just about one company getting it wrong. It’s a reflection of a broader mindset shift businesses need to make. If your digital product is critical to your business, you need to treat it with the same care, attention, and investment as any other core function.

Innovation doesn’t come out of a box. It’s built.

FAQs

What was Builder.ai and why did it fail?

Builder.ai was a platform that promised to make custom software development faster, cheaper, and easier using a mix of low-code tools, automation, and AI. In theory, it allowed businesses to build apps without needing a full development team. In practice, it oversimplified what it takes to build high-quality, scalable products. Their approach couldn’t handle the complexity or flexibility that real businesses needed. Ultimately, the cracks showed, and the business collapsed.

Aren’t low-code and no-code platforms supposed to be the future?

They’re part of the future, not the whole thing. Low-code tools are great for quick prototypes, internal tools, or MVPs where speed outweighs scale. But if you’re building something truly innovative or mission-critical, those platforms hit limits fast. When you need custom logic, performance, scalability, or a standout user experience, you need expert hands on the tools.

How do app builders compare to custom digital products?

App builders are like prefab homes: quick, affordable, and often decent enough if you don’t need anything special. Custom digital products are like architect-designed houses, built around your goals, your users, and your future growth. Builders serve the average use case. Custom products serve your unique ambition.

Is it more expensive to build things from scratch?

Upfront, yes. But it’s also a smarter investment long-term. You avoid the technical debt, limitations, and rework that often comes from cutting corners early on. We’ve seen too many clients who started with templated tools, only to come to us later needing a rebuild. Doing it right the first time saves time, money, and momentum.

What kind of businesses benefit most from a custom approach?

Any business where digital is a core part of their brand, product, or user experience. That includes SaaS startups, DTC brands, marketplaces, enterprise platforms, and ambitious scaleups. If you want to lead your space, not just show up in it, you need a product that’s built around you.

Can you still use no-code tools during a custom build?

Absolutely, we’re not anti-tool. We’re anti-one-size-fits-all. Sometimes, no-code is great for admin dashboards, content management, or early prototypes. The key is knowing when to use them, and when not to. A good product team makes that call with you, not for you.

How do I know if I’m ready for a custom digital product?

If your current solution is holding you back, whether it’s performance, design, functionality, or flexibility, that’s a sign. If your business is growing and your tech stack can’t keep up, that’s another. We help businesses at every stage assess where they are, where they want to go, and what kind of digital solution they need to get there.

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