Setting Up Claude Code in Cursor or VS Code

On October 2, The Daily AI Show focused on Claude Code and how it can be used for business productivity—not just coding. Karl walked through installing Claude Code in Cursor or VSCode, showed how to connect it to tools like Zapier, and demonstrated how to build custom agents for everyday workflows such as reporting, email, and invoice consolidation.

Key Points Discussed

• Claude Code is not just for developers—it can function as a new operating system for business tasks when set up inside Cursor or VSCode.

• Installing Claude Code in a controlled test folder is recommended, since it gives the agent access to all subfolders.

• Users can extend Claude Code with MCP servers, either through Zapier (broad access to 3,000+ apps) or third-party servers on GitHub.

• Zapier MCPs are convenient but limited by credits and cost, while third-party MCPs often offer richer functionality but carry security risks like prompt injection.

• Enterprise-level MCP managers exist for safer oversight but cost thousands per month.

• Claude Code can manipulate local files, move folders, compare PDFs and spreadsheets, and generate reports on command.

• Whisper Flow integration allows voice-driven control, making it easy to speak tasks instead of typing.

• Creating agents inside Claude Code is a breakthrough: users can build dedicated assistants (e.g., email agent, payroll agent, invoice agent) and call them with slash commands.

• Combining agents with MCPs enables multi-step automation, such as generating a report, emailing results, and logging data into external systems.

• Security and IT concerns remain—Claude Code’s deep access to local environments may alarm administrators, but the productivity unlock is significant.

Timestamps & Topics

00:00:00 🎙️ Intro: Claude Code beyond coding

00:01:55 💻 Setting up in Cursor or VSCode

00:03:12 🔌 Installing Claude Code via extension or terminal

00:05:18 📂 Creating a test folder to control access

00:06:07 🖥️ Cursor vs. VSCode, terminal environments

00:08:52 ⚙️ Commands and model options (Sonnet 4.5, Opus)

00:10:16 🔗 Using MCPs via Zapier and third-party servers

00:12:29 📊 Zapier limits and costs after Sept 18 changes

00:15:23 🏢 SaaS integration challenges and authentication

00:19:34 📧 Drafting emails and sending Slack messages through Zapier MCP

00:22:12 🔍 Comparing native vs. third-party MCP tool calling

00:24:07 🛡️ Security risks of third-party MCPs and prompt injection

00:31:39 🔒 Enterprise-grade MCP manager for oversight

00:34:42 📑 Automating monthly reporting across tools

00:38:39 📂 File manipulation and invoice consolidation demo

00:42:17 🤖 Creating custom agents for repeat workflows

00:45:27 📦 Agents as mini-GPTs with tool access

00:47:49 🧑‍💼 Multi-agent orchestration: invoice + email + payroll

00:50:29 📋 Agents stored in project folder and reusable

00:52:46 📝 Claude.md file as global instruction set

00:56:42 🆚 Claude Code vs. Codex: strengths and tradeoffs

00:58:46 ⚠️ Security, IT reactions, and real-world risks

01:02:24 🚀 Unlocking productivity with agent armies

01:03:02 🌺 Wrap-up and Slack invite

Hashtags

#ClaudeCode #MCP #Zapier #Cursor #VSCode #AIagents #WorkflowAutomation #AITools #DailyAIShow

The Daily AI Show Co-Hosts:

Andy Halliday, Beth Lyons, Brian Maucere, Eran Malloch, Jyunmi Hatcher, and Karl Yeh