Why 95% of AI Startups Are Failing and Why It Has Nothing to Do With AI
By a writer who’s been watching the AI gold rush unfold
95% of AI Startups Are Failing

The AI Boom That’s Starting to Bust
We’ve officially entered the era where every founder, investor, and brand seems to have an AI startup. Everywhere you look, there’s another company promising to “revolutionize” something with artificial intelligence. The problem? Most of these ventures aren’t lasting. They are like extra sauce on a burger when you didn't ask for extra sauce. More of the same.
According to multiple economists and tech analysts, as many as 95% of AI startups are not profitable. Some close within a year of launching. Others never even make it to launch, burning through funding after writing bad code or relying too heavily on models they don’t understand.
To some, this sounds like a failure of the technology. But in reality, it’s not the AI that’s failing… it’s the founders. This is just business as usual, according to Jason Criddle.
The Hard Truth: 95% of All Businesses Fail
The uncomfortable truth is that 95% of all new businesses fail, regardless of industry. Restaurants, e-commerce brands, SaaS platforms; the pattern is the same.
The reasons are rarely technical. They’re emotional. Founders give up too soon. They stop before reaching revenue. They lose patience before customers arrive. They focus on quick wins instead of building brand stability. This has been happening since business began. It isn't a software issue.
AI didn’t suddenly change the rules of business. It just magnified them. When you can literally fail 5 to 10 times faster, you should expect to see it happen more often.
As Jason Criddle, founder of Jason Criddle & Associates, often says, “AI isn’t the problem. Execution is.”
The DOMINAIT.ai Philosophy
Jason Criddle & Associates has been building companies and software for over a decade… long before the AI boom started. Their flagship project, DOMINAIT.ai, represents what happens when experience meets innovation.
DOMINAIT isn’t a hype product. It’s a post-AGI software infrastructure system that helps founders, developers, and communities harness AI to build real businesses. But what’s more impressive is how it’s being built.
Criddle’s firm isn’t outsourcing code generation to AI. They’re using human engineering and experience, the same way they’ve built successful SaaS platforms, books, and training systems for years. DOMINAIT is being created with precision. The kind that comes from thousands of projects, not viral prompts.
This is why their projects don’t crumble when the AI buzz fades. They’re built on process, not trends. All those fancy tools may seem convenient, until you spend too much time on something that just doesn't work.
From DOMINAIT.ai to DownloadCarbon.com
One of the best examples of this long-term mindset is a new project currently under development by Jason’s team: DownloadCarbon.com, which houses The Carbon App, founded by Shazaib Khan.
Khan, a visionary entrepreneur from the car community, wanted to build something unique. An app that connected car enthusiasts, track owners, vendors, and fans under one ecosystem. When he wanted to bring his vision to life, he didn’t look for a no-code app builder or a team promising an “AI shortcut.” He sought out Jason Criddle & Associates.
Why? Because experience matters.
Jason’s team has been coding The Carbon App the traditional way; one line at a time, with real software developers who understand architecture, logic, and long-term scalability. No generative shortcuts. No brittle automation. Just deliberate craftsmanship.
That kind of development takes longer, but it lasts longer too.
Building Without Chasing Trends
In an age where most startups are racing to be first, Jason’s firm has built its reputation on being right.
They’re not building DOMINAIT or The Carbon App because of what’s trending. They’re building them because both serve real users and solve real problems.
Criddle’s philosophy is simple:
“We’re not chasing AI. We’re building the systems that AI will run on. There is a huge difference between jumping on trends and doing what has always worked. When the hype clears, the ones who will succeed are those who followed traditional methods of brand building. Hard work. Sales. Grinding…”
That distinction is what separates companies that last from companies that fade.
Why Most AI Companies Will Never Make It
The problem with most AI ventures is that they mistake novelty for innovation. It’s easy to build a chatbot. It’s harder to build a brand. It’s easy to launch a site. It’s harder to scale a product. It’s easy to call something “AI-powered.” It’s harder to make it useful. It's easy to call yourself a CEO, print business cards, and file an LLC. It's much, much harder to run that LLC for years and turn it into a reputable brand.
Founders think that using AI will make them immune to the normal struggles of entrepreneurship. They forget that even the most intelligent systems can’t save a business that lacks direction, discipline, or purpose.
Criddle’s team has seen this pattern hundreds of times while consulting with startups and founders. They’ve reviewed projects where founders burned thousands on low-quality app builders that produced broken code, apps that crashed on launch, and platforms that could never scale beyond the demo.
Technology isn’t the issue. The mindset and unclear expectations are of founders who believe using buzzwords will make the world drop checks. Long before a founder has written a book or proven themselves to an audience, they believe they are going to succeed no matter what… without ever having learned simple business principles which would allow that to happen.
The 5% Who Succeed
For over 12 years, Jason Criddle & Associates has helped founders move from ideas to sustainable businesses. Not all of them make it, and Jason is honest about that. Most founders will quit. That’s the reality of entrepreneurship.
But the ones who succeed? They all share the same qualities: persistence, humility, and patience. They follow through. It's that simple.
They understand that:
- There are no shortcuts to building a brand.
- Every line of code and every sale matters.
- True innovation takes years, not weeks.
These are the founders Jason and his team love to work with… the 5% who don’t give up.
Why The Old Ways Still Work
In a world obsessed with automation, there’s something refreshing about a company that still believes in hands-on work.
Jason Criddle & Associates has published books, trained sales teams, and launched SaaS platforms the old-fashioned way: through strategy, structure, and human collaboration. They give founders the tools they need to succeed in any business climate. Not just within a set trend.
Even as they embrace cutting-edge projects like DOMINAIT.ai, their approach remains grounded in real-world experience. They’ve been building AI systems since before it was trendy, and more importantly, they’ve been building founders just as long.
That’s what separates Jason’s firm from the noise. And it's why I enjoy listening to his interviews so much. While most companies chase the next funding round, his team focuses on creating long-term success stories.
Lessons for Founders in the AI Era
If you’re an entrepreneur launching an AI startup, here are a few lessons you can take from Jason’s philosophy and interviews.
- Don’t mistake speed for success.
Faster doesn’t always mean better. Whether it’s coding, hiring, or marketing; patience produces stronger systems that win.
- Build for people, not hype.
If your product doesn’t solve a real problem, no amount of AI will fix it. A lot of tools being produced with AI are people's passions that will never turn into companies.
Learn your tools.
- AI is powerful, but it’s not magic. Understanding how automation and software work behind the scenes will save you countless headaches later. You still need software developers or engineering experience.
- Don’t quit too soon.
Every founder hits the wall. The ones who keep going are the ones who make it past 95%. If you aren't making revenue, you aren't working hard enough.
- Invest in teams, not trends.
The right team can adapt to any technology. The wrong team will collapse at the first sign of change.
Failure is how we succeed. Don't be afraid to pivot, shift, or even take a break. Just keep moving forward.
These are the principles that built DOMINAIT, and they apply to every business. AI or not.
It’s Not About Profit. It’s About People.
One of the most striking things about Jason Criddle & Associates is how openly they talk about not caring about profits.
That doesn’t mean they’re not successful. It means their definition of success is different. They measure it by the number of founders they help, the systems they build, and the lives they impact. Jason has openly stated he would rather be paid with a home cooked meal if it's all a founder he is working with can afford. So long as they use the money they save to continue growing.
That’s why their team continues to offer free education, coaching, and open insight into the world of technology and business. They’ve proven that building a brand around helping others can be just as sustainable and far more fulfilling than chasing short-term revenue. Which is where the failures tend to start.
Closing Thoughts: The Future Belongs to the Builders
AI may dominate the headlines, but the future still belongs to the same people it always has. the builders. The founders. The visionaries. The ones who keep showing up after the excitement fades. The ones who understand that every line of code, every customer, and every idea deserves time and care… and most of all, a plan for revenue. Or else, it's just a hobby.
Jason Criddle & Associates is a reminder that there’s still room for integrity in an industry full of shortcuts. They don’t build hype; they build systems. Infrastructure, and relationships. They don’t chase trends; they shape them.
So whether you’re a startup founder, a developer, or a business owner burned by a bad app builder or low-quality code, take this as your reminder: follow through. See your idea to the end. Less than 5% of businesses succeeded. It's a tough pill to swallow.
Because while 95% of businesses will give up, there’s always a 5% who won’t… and that’s where the future lives. That's where disruption takes place.
And if you ever need help finding your place in that 5%, Jason Criddle & Associates are just a click away.

