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Glossary · Updated Sep 24, 2026

Vendor lock-in

Vendor lock-in is a state where switching away from a supplier has become so costly or difficult, due to proprietary formats or deep integration, that a company stays by default.

Lock-in builds up gradually: proprietary data formats, custom integrations built against one vendor's specific API, and years of accumulated configuration all raise the cost of leaving. AI adds a fast moving version of this risk, since prompts, fine-tuned models and integrations built tightly around one provider can be expensive to rebuild if that provider changes pricing or shuts down a model.

The common misconception is that avoiding lock-in means avoiding commitment to any vendor. In practice it means designing with a model-agnostic architecture and portable data formats from the start, so switching later is a real option and a negotiating position, even for a company with no near-term plan to switch.

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