Ctrl AI Profit

Ep. 104 | Companies Are Under AI Psychosis — And It's Costing Them Everything

12 min · 20 de may de 2026
portada del episodio Ep. 104 | Companies Are Under AI Psychosis — And It's Costing Them Everything

Descripción

Mitchell Hashimoto — co-founder of HashiCorp — says there are entire companies right now under "AI psychosis," making irrational decisions they can't defend, and he's worried about how this plays out. Michael and Frank break down what AI psychosis actually looks like: cutting people before the technology is proven, optimizing for dashboards while systems rot underneath, and delegating responsibility to AI instead of just delegating work. The conversation goes deep on why Gartner's new study found that eighty percent of companies cut jobs for AI — but those layoffs didn't improve returns. The firms that got ROI kept their people and used AI to amplify them, not replace them. This isn't about whether AI is useful. It's about whether you're using it in a way that makes your business more resilient or more fragile. From the "resilient catastrophe machine" to AI washing as rhetorical cover for layoffs, this episode is a reality check for any business making AI decisions under pressure. The question isn't whether to use AI — it's whether you're still thinking clearly while you do it. Topics: AI Strategy · Business Decisions · Tech Layoffs · AI ROI · Automation Risk · Management Psychology --- Frequently Asked Questions What is "AI psychosis" and how do you know if your company has it? AI psychosis is when companies lose the ability to think critically about AI and start making decisions based on faith rather than evidence. Warning signs include cutting staff before proving AI can reliably replace their work, optimizing for short-term productivity metrics while ignoring long-term system health, and treating "impossible to have rational conversations" about AI trade-offs as normal. If your team can't operate when AI tools stop working, you're not using AI — AI is using you. Why didn't AI-driven layoffs improve company returns? Gartner studied three hundred fifty large enterprises and found that eighty percent cut jobs tied to AI adoption — but there was no meaningful ROI difference between companies that cut staff and those that didn't. Companies with high AI returns kept their people and used AI to amplify productivity, not replace expertise. Layoffs create budget space, not return on investment. Cutting institutional knowledge before AI capability is proven leaves companies unable to debug, iterate, or handle edge cases when systems fail. How do you use AI without falling into the psychosis trap? Automate the work, not the responsibility. Keep humans who understand your business close to AI-driven decisions. Measure long-term system resilience, not just short-term efficiency gains. Wait to restructure until you've proven AI can handle the work reliably under stress — not just in the pilot. Use AI as a force multiplier for skilled teams, not a replacement for expertise. And be willing to move slower than your competitors if that's what rational decision-making requires. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail [https://www.buzzsprout.com/2596090/fan_mail/new] Support the show [https://www.buzzsprout.com/2596090/support] Ctrl AI Profit — Real AI. Real Business. No Hype. CtrlAiProfit.com X: @CtrlAIProfit TikTok: @CtrlAiProfit YouTube: @CtrlAiProfit CtrlAiProfit@850Media.com Produced entirely by AI. Yes, really....

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episode Ep. 111 | The Federal Reserve Just Weighed In on AI artwork

Ep. 111 | The Federal Reserve Just Weighed In on AI

The New York Fed just published the most honest assessment of AI's economic impact we've seen from a major institution. Their take: AI could boost productivity, reshape labor, and transform financial stability — but the gains aren't automatic, the transition will be messy, and concentration risk is real. This isn't hype. This is economics. Michael and Frank break down the Fed's three big findings — productivity inequality, labor disruption, and financial stability risks — and translate them into practical takeaways for small business owners. Plus: why the herding problem makes human judgment your competitive advantage, why small businesses have an agility edge over big companies, and the three-word playbook the Fed is implicitly giving every business owner. Topics: Federal Reserve · AI Economy · Small Business AI · AI Productivity · AI Risk · Financial Stability · Artificial Intelligence · Business Technology --- Frequently Asked Questions What did the Federal Reserve say about AI? The NY Fed's Liberty Street Economics blog published an analysis of AI's macroeconomic challenges and promises. They found that AI productivity gains are concentrated in specific sectors (IT, professional services, finance), the labor transition will be messy with a gap between job displacement and creation, and concentration risk from dependence on a few AI providers is a systemic concern. How does the Fed's analysis affect small businesses? Small businesses in high-AI sectors need to adopt fast or risk being outpaced. In lower-impact sectors, margins are thinner so there's less room for error. The Fed's implicit message: adopt with intention, reinvest saved capacity, diversify your AI stack, and combine AI efficiency with human judgment. What is AI concentration risk? When too many businesses depend on the same AI provider (OpenAI, Google, Anthropic), outages, price changes, or policy shifts can affect everyone simultaneously. The solution is diversification — using multiple AI providers and local models so no single provider can disrupt your business. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail [https://www.buzzsprout.com/2596090/fan_mail/new] Support the show [https://www.buzzsprout.com/2596090/support] Ctrl AI Profit — Real AI. Real Business. No Hype. CtrlAiProfit.com X: @CtrlAIProfit TikTok: @CtrlAiProfit YouTube: @CtrlAiProfit CtrlAiProfit@850Media.com Produced entirely by AI. Yes, really....

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episode Ep. 110 | AI Saved You Five Hours This Week. What Did You Do With Them? artwork

Ep. 110 | AI Saved You Five Hours This Week. What Did You Do With Them?

Gartner just dropped a bomb: AI is saving salespeople nearly 5 hours a week — but 72% of companies are wasting that time. They're not reinvesting it into revenue-generating activities. They're letting it evaporate. It's called the reinvestment gap, and it's the single biggest reason AI isn't delivering on its productivity promise. Michael and Frank break down the Gartner data, why saving time isn't the same as creating value, and the four-step playbook for turning AI time savings into business growth. Plus: why 1 in 5 companies is actually losing money on AI, the gym membership analogy that explains everything, and the one question every small business owner needs to ask themselves this week. Topics: Gartner · AI Productivity · Small Business AI · AI ROI · Time Management · AI Strategy · Artificial Intelligence · Business Technology --- Frequently Asked Questions What is the AI reinvestment gap? Gartner found that 72% of organizations that save time with AI don't reinvest that time into higher-value activities. The time savings are real, but the value is zero because there's no plan for what to do with the freed capacity. How do I reinvest AI time savings? First, measure how much time AI actually saves you. Second, decide specifically what revenue-generating activity you'll use that time for. Third, reinvest in activities only humans can do — relationship building, strategic thinking, customer conversations. Fourth, track whether the reinvested time generates revenue. Why are companies losing money on AI? 20% of organizations report negative ROI from AI because they buy the tool but don't change their behavior. The subscription costs money, and if the saved time isn't reinvested into revenue-generating activities, the net result is negative. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail [https://www.buzzsprout.com/2596090/fan_mail/new] Support the show [https://www.buzzsprout.com/2596090/support] Ctrl AI Profit — Real AI. Real Business. No Hype. CtrlAiProfit.com X: @CtrlAIProfit TikTok: @CtrlAiProfit YouTube: @CtrlAiProfit CtrlAiProfit@850Media.com Produced entirely by AI. Yes, really....

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episode Ep. 109 | OpenAI's New Money Grab: Pay Up or Get in Line artwork

Ep. 109 | OpenAI's New Money Grab: Pay Up or Get in Line

OpenAI just launched Guaranteed Capacity — long-term contracts to lock in AI compute access. It sounds like an enterprise feature, but it's actually a warning sign: compute is getting scarce, and the companies with money are paying to skip the line. Here's what that means for your business, your subscriptions, and your strategy. Michael and Frank break down why compute scarcity is the hidden force shaping AI pricing, how OpenAI and Anthropic are both building moats (one with contracts, one with developer tools), and why small businesses need to diversify their AI stack now — not later. Plus: open-source models that run locally for free, why Andrej Karpathy joining Anthropic matters, and four concrete steps to protect yourself from the coming compute squeeze. Topics: OpenAI · Guaranteed Capacity · AI Compute · Small Business AI · AI Pricing · AI Strategy · Artificial Intelligence · Business Technology --- Frequently Asked Questions What is OpenAI Guaranteed Capacity? It's a program where companies pay upfront to reserve long-term compute access on OpenAI's infrastructure. Think of it like season tickets — you pay more, but you're guaranteed access even when demand spikes. Why does compute scarcity matter for small businesses? When compute is scarce, AI tool prices go up, free tiers get capped, and smaller players get squeezed. The tools you use today could cost more tomorrow because the infrastructure running them is in high demand. How can a small business protect itself from compute scarcity? Diversify your AI tools across providers, use smaller models for routine tasks, build your own data and processes that aren't dependent on any one platform, and experiment with local/open-source models as a free alternative. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail [https://www.buzzsprout.com/2596090/fan_mail/new] Support the show [https://www.buzzsprout.com/2596090/support] Ctrl AI Profit — Real AI. Real Business. No Hype. CtrlAiProfit.com X: @CtrlAIProfit TikTok: @CtrlAiProfit YouTube: @CtrlAiProfit CtrlAiProfit@850Media.com Produced entirely by AI. Yes, really....

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episode Ep. 108 | Meta Fired 8,000 People for AI — Why That Should Terrify You artwork

Ep. 108 | Meta Fired 8,000 People for AI — Why That Should Terrify You

Meta just fired 8,000 people — 10% of their workforce — and said it's to fund AI infrastructure. It's the biggest AI-driven layoff from a major tech company ever, and it's a signal every small business owner needs to understand. The message isn't "AI is coming for your job." It's "AI is now existential for every business, including yours." Michael and Frank break down what Meta's layoffs actually mean, how it connects to compute scarcity and the OpenAI Guaranteed Capacity play, and why small businesses have a surprising advantage: they're already lean. Plus: the difference between AI replacing tasks and replacing jobs, why adaptability is the most valuable skill in business, and three concrete things you can do this week to start your AI transition without firing anyone. Topics: Meta Layoffs · AI Disruption · Small Business AI · AI Strategy · Compute Scarcity · Future of Work · Artificial Intelligence · Business Technology --- Frequently Asked Questions Why did Meta lay off 8,000 people? Meta stated the layoffs were to redirect resources toward AI infrastructure. They're investing heavily in large language models (Llama), data centers, and AI-powered products for WhatsApp, Instagram, and advertising. Does this mean AI is replacing jobs? AI is replacing tasks, not entire jobs. The roles being cut are primarily routine, rules-based work. Creative, strategic, and relationship-based roles are appreciating in value. Small business owners should focus on what AI can't do — judgment, creativity, and human connection. What should a small business owner do in response? Start using AI tools now on one specific workflow. Stay lean — invest in tools that multiply your team's effectiveness rather than adding headcount. And focus on adaptability — the willingness to learn and change is more valuable than any specific technical skill. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail [https://www.buzzsprout.com/2596090/fan_mail/new] Support the show [https://www.buzzsprout.com/2596090/support] Ctrl AI Profit — Real AI. Real Business. No Hype. CtrlAiProfit.com X: @CtrlAIProfit TikTok: @CtrlAiProfit YouTube: @CtrlAiProfit CtrlAiProfit@850Media.com Produced entirely by AI. Yes, really....

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episode Ep. 107 | Google Just Put AI in Your Glasses artwork

Ep. 107 | Google Just Put AI in Your Glasses

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