An overview of recent AI software shutdowns reveals growing sustainability and adoption challenges.
Workflow automation tool Relay and chat platform closed their doors, while S&P data indicates 42% of corporate AI initiatives are abandoned as developers and companies rethink tool viability.
The tools and applications that were closed
A prime example is Relay, an AI-powered workflow automation tool, which shut down completely in August. The same path was followed by interactive chat platform Character.ai, which filed for bankruptcy five years after its launch.
Other well-known apps have joined the list of services that have stopped operating. Notion Mail scheduled its shutdown for September 22 as users preferred standalone programs. Audio app Huxe shut down in May 2026 as larger platforms introduced similar features. Meanwhile, model testing platform Yupp shut down in March 2026 due to lack of market traction, while Figgs AI app shut down as the cost of maintaining a free service for over 1 million users became unsustainable.
The difficulties for big players
Even the biggest companies in the space have faced setbacks and had to change their plans. OpenAI recently overhauled its app after heavy user criticism of its confusing interface, while also shutting down its ChatGPT Atlas browser and Sora video platform in March 2026.
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In the hardware space, Apple delayed the release of its revamped Siri, which contributed to a $250 million settlement in a lawsuit over the iPhone 16's capabilities. Microsoft's Recall feature was delayed for nearly a year due to security and privacy concerns, while questions continue after a recent security finding.
Devices that didn't live up to expectations
The journey for new smart devices has been particularly difficult. Humane AI Pin raised $230 million, warned customers about a fire hazard in its charging case, and eventually sold its assets to HP for $116 million. Similarly, the Rabbit R1 sold 100.000 units upon launch but faced criticism for being an unfinished product.
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