Why AI Fails Small Business (And What to Do First)

Most AI projects fail before they start because businesses skip the most important step: figuring out what's actually broken. Jason Padgett and Adam Staples unpack why clarity has to come before automation, what the recent Claude code leak actually tells us about AI development culture, and whether the current wave of AI layoffs is real efficiency or EBITDA spin.

Key topics covered:

Why small businesses can't follow the enterprise AI playbook — resources, talent, and timeline don't match

"You cannot automate chaos" — Chakra BPC's process-first approach to AI deployment

The Turing test in real life: an AI-written newsletter that fooled a credentialed English teacher

OpenAI's media network acquisition and what AI-controlled journalism does to independent coverage

The Claude source code leak: human error, competitive ethics, and the "honor among thieves" argument

AI layoffs at companies like Salesforce — EBITDA cover story or actual automation gains?

Why liberal arts and communication skills are becoming the most valuable AI adjacency

What data science and CS graduates should be targeting instead of big tech entry-level roles

SpaceX IPO timing, AI company valuations, and whether the private market can absorb them

Data centers in orbit: costs, robotics requirements, and Silicon Valley magical thinking

Bottom line: Scale people, don't replace them. The businesses getting real ROI from AI are the ones who started by fixing their processes, not buying the pixie dust.

About Adam Staples: Founder of Chakra Business Process Consulting, Indianapolis, Indiana. 25 years in telecom, SaaS, and IT consulting. Helps SMBs build operational clarity before deploying AI. chakrabpc.com

Work with Jason → jason@mycitizen.ai

🌐 https://www.phoenixsolutionsgroup.org/

Newsletter → https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7399599285849346048

AGI Podcast shows:

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Data Bytes: Data literacy for business owners

The Vibe: Deep conversations, no time limit

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Tools Jason recommends:

MindStudio → https://get.mindstudio.ai/q7n7u5cttkdq

Riverside.fm → https://riverside.sjv.io/e1xyBr

Wispr Flow → https://ref.wisprflow.ai/jason-padgett