Investors, Listen Up: You're Not in Love. You're Hypnotized.

The AI Mirage: Buzzwords Over Business Value.

Author

Glenda Carnate
September 24, 2025

Read time: 2.5 minutes

Investors, let's get real. You're not falling in love with AI startups; you're being hypnotized by buzzwords.

According to a 2025 report by S&P Global, 42% of companies abandoned most of their AI initiatives in 2025, up from just 17% the year before.

Translation? You're funding startups that are more about "vibe coding" than viable business models.

The Harsh Reality:

  • Buzzword Overload: Investors are dazzled by terms like "AGI" and "prompt engineering," but where's the revenue?

  • Startup Promises vs. Reality: Founders pitch "disruption," but many projects disrupt... nothing.

  • The AI Graveyard: Many AI initiatives are abandoned before they reach production, leading to wasted investments.

  • The Need for Due Diligence: It's crucial to evaluate the market existence, customer interest, and practicality of AI solutions before investing.

Key Takeaways:

  1. Market Validation is Key: Ensure there's a real market need for the AI solution.

  2. Customer Interest Matters: Test if customers genuinely care about the product.

  3. Avoid Buzzword Traps: Don't be swayed by flashy terms without substance.

  4. Invest in Viable Solutions: Focus on funding AI projects with clear business value and potential for revenue.

👉 LIKE if you're ready to move beyond buzzwords and invest in real AI solutions.

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