Investing in AI? Here’s How to Avoid Buying Vaporware

The race to innovate in the fast-moving tech world can often create more hype than real results. A term that sums this up is vaporware, which refers to software or hardware that’s heavily promoted but either never makes it to market or falls far short of its promised capabilities.  

And selling vaporware almost cost Apple $100 million back in 1991. A California jury ruled that the company’s “overly optimistic statements” about its Lisa computer and Twiggy disk drive misled investors and violated federal securities laws, according to the Harvard Journal of Law & Technology.   

Although the judge didn’t enforce the verdict, Apple’s case solidified the term “vaporware” in the tech lexicon—a stark reminder of what happens when companies overpromise and underdeliver.  

Fast forward to today, and vaporware still looms large, particularly in the AI space. With so much buzz around what’s possible, it’s easy for companies to overpromise and underdeliver, leaving buyers stuck with underwhelming tools that don’t solve real business challenges. As the hype around AI grows, so do the risks of investing in tools that fail to live up to their claims.  

How do you avoid investing in tools that overstate their capabilities? And how can you trust you’re making a smart, strategic choice? Let’s explore vaporware: why it happens, how to spot it, and how to avoid a costly mistake. 

Vaporware: Why does it happen?  

While not a new concept, vaporware is particularly rampant in fast-moving tech spaces like AI, where the race to impress often trumps the ability to deliver. 

But why does vaporware happen? It usually comes down to a mix of ambition, pressure, and a lack of preparation: 

• Racing to market: Every company wants to beat its competitors and capitalize on trends. But the pressure to perform can lead some to announce products before fully developing them. 

• Overpromising to investors: Startups, in particular, may inflate their product capabilities to secure funding or appease stakeholders. 

• Lack of expertise: Companies entering new spaces like AI—without the right technical know-how—often struggle to deliver on their vision. 

While some vaporware eventually develops into functional products, the process is often marked by missed deadlines, frustration, and compromised expectations. 

How to spot (and avoid) costly AI vaporware 

As we’ve probably all experienced at one time or another, not every product lives up to its hype. Understanding why it happens is the first step. Here’s how to spot warning signs that something might be more promise than performance: 

Big claims, no backup 

When a vendor touts their product as “game-changing” or “revolutionary” but fails to provide examples, demos, or specific use cases, it’s time to dig deeper. Look for evidence that their tool works in the real world. 

Repeated delays without clarity 

When timelines keep slipping with no clear explanation or updated roadmap, it’s often a sign that the product isn’t ready—or may never be. Reliable companies with solid offerings stick to realistic schedules and communicate proactively about challenges. 

Few or no customer examples 

Trustworthy solutions have proven track records. If a vendor can’t share customer success stories or connect you with users who’ve seen results, it’s worth questioning why. 

Unclear integrations 

A good product should easily fit into your existing systems. If a vendor struggles to explain how their tool works with your tech stack, that’s cause for concern. 

No hands-on experience offered 

Vendors confident in their tools will provide live demos, trials, or pilots. If you can’t see how the product works before committing, you’re taking an unnecessary risk. 

How to protect your business from vaporware  

Asking the right questions and doing your homework can help you sidestep vaporware and invest in AI that delivers measurable value. Consider these suggestions for evaluating vendors and tools: 

• Insist on live demos or trials: Don’t settle for polished slide decks or marketing messages. Request a demo or pilot program to see the product in action. 

• Talk to existing customers: Reach out to other businesses that use the product and ask about their experiences. Did the tool meet their expectations? 

• Review the vendor’s timeline: A credible company will offer a clear, realistic delivery schedule—not vague assurances about future availability. 

• Check integration details: Make sure the product will work with your current systems without requiring expensive custom solutions. 

• Look for openness: Choose vendors who are upfront about pricing, functionality, and implementation processes. Transparency builds trust. 

With Domo, taking these steps become much easier. Our proven track record means you can focus on achieving your goals, not worrying about unmet promises. 

What’s next: Real solutions, real results with Domo 

The AI space is full of opportunities—and risks. Fall for an overhyped solution, and you risk wasting valuable rseources. But choosing your tools wisely can help you find a competitive edge in a crowded market.  

At Domo, our mission is providing AI tools that create value for you and your team. From turning complex data into clear insights to automating time-consuming tasks, our AI agents—smart applications that automate tasks—help businesses deliver real results. Here’s what sets us apart: 

• Proven tools in action: Our AI solutions, including Domo.AI and AI agents, are already being used by businesses to tackle challenges like streamlining operations and uncovering insights in real time.  

• Real customer success: Our customers are achieving incredible outcomes. Their measurable wins showcase how Domo tools make a difference—and you can hear from customers themselves in our upcoming webinar, Experience the Power of AI Agents with Domo, on December 4, 2024. 

• Transparency every step of the way: From our initial demos to deployment, we’re clear about what you can expect. Our tools are designed to be up and running quickly, delivering value without unnecessary complexity. 

Want to see Domo.AI in action? Join us on December 4 for an exclusive event showcasing the power of AI Agents. Explore how Domo can transform your business and see why we’re leading the charge in agentic AI. 

Register for the event today.