Keeping up with the Speed of AI: A Tech Startup Journey with BackEngine

In this episode of Tech Startup Stories, Natalie Binns reconnects with Eli Portnoy, founder and CEO of BackEngine, one year after his first appearance on the podcast. Over the past twelve months, both the AI landscape and BackEngine have evolved at extraordinary speed, forcing founders to rethink not only how they build products, but also how they define value in an increasingly crowded market.

Throughout the conversation, Eli reflects on the realities of building an AI company during one of the most transformative periods in software development. Rather than chasing every new trend, he shares why long-term success depends on solving meaningful problems, staying close to customers, and recognising that technology alone is never the complete answer.

Listen to the Podcast: Available on Spotify, Amazon Music, Apple Podcasts and YouTube.

Building in an Era of Exponential Change

For Eli, the past year has brought more change than almost any other point in his career. Advances in AI have dramatically accelerated software development, allowing teams to build production-ready products far faster than ever before.

While this has created enormous opportunities, it has also raised the competitive bar. Every company now has access to similar AI capabilities, making speed alone far less of a competitive advantage than it once was.

As organisations increasingly question whether they should continue buying standalone software or rely on AI tools such as ChatGPT and Claude to complete everyday tasks, software companies are being challenged to demonstrate genuine value beyond simple automation.

For BackEngine, this has meant continually rethinking both its product and its position within a rapidly changing market.

Staying Focused on the Real Problem

Rather than competing on features alone, Eli explains that BackEngine has remained focused on helping organisations connect AI with real business workflows.

Instead of expecting customers to adopt another disconnected application, the company is building technology that works alongside the tools teams already use, making AI more practical and easier to integrate into everyday operations.

This approach reflects a wider belief that successful AI products should remove complexity rather than introduce more of it.

As expectations around AI continue to evolve, understanding how people actually work has become just as important as developing new technical capabilities.

Why Product Development Is Only Half the Challenge

One of the strongest themes throughout the conversation is that many organisations continue to overestimate what AI can achieve without broader organisational change.

While the technology itself has advanced rapidly, Eli believes the biggest obstacles now lie elsewhere.

Introducing AI into a business requires far more than installing new software. It involves redesigning processes, helping teams adopt new ways of working, and investing in change management that supports long-term adoption.

Without those foundations, even the most impressive technology can struggle to deliver meaningful results.

For founders building AI products, this means recognising that customer success often depends as much on people as it does on technology.

Cutting Through the AI Hype

As AI dominates headlines, Eli also offers a refreshingly balanced perspective on the industry's rapid growth.

He acknowledges that AI has become remarkably capable in areas such as software development, allowing teams to build products faster and iterate more efficiently than ever before.

At the same time, he cautions against unrealistic expectations and the growing fear of missing out that often surrounds emerging technology.

Not every business challenge can be solved overnight through AI alone, and founders risk disappointing customers if they promise transformational outcomes without addressing the practical realities of implementation.

For Eli, the future of AI depends on greater honesty about both its strengths and its current limitations.

Building for the Long Term

As BackEngine continues to evolve, Eli remains optimistic about the future while recognising that sustainable businesses are rarely built by chasing headlines.

The companies that succeed will be those that continue solving real customer problems, adapt as technology evolves, and invest in helping people embrace change rather than simply expecting technology to do all the work.

At the heart of the conversation is a reminder that AI may be transforming how software is built, but building a successful startup still depends on timeless principles: understanding customers, creating meaningful value, and remaining adaptable as the market continues to evolve.

Listen to the Podcast: Available on Spotify, Amazon Music, Apple Podcasts and YouTube.

Listen to the full episode with Eli Portnoy from BackEngine on Tech Startup Stories, hosted by Natalie Binns, and follow for more conversations that focus on the true realities of building a startup.