Engineers are remarkably gifted at creating solutions to problems no one knew existed—at least, not the average person. Take the humble public restroom. Once upon a time, we all managed just fine with the trusty twisty-knob faucet. Turn left for hot, right for cold. Simple. Functional. Civilized.

Then, sometime in the 1980s, engineers decided humanity deserved better—or at least shinier. They unveiled motion-sensitive, infrared faucets that activated water flow with a wave of the hand. A neat trick, if not exactly a pressing need. Consumers yawned. The faucets were clever but largely unwanted curiosities.

Enter the water-conservation crusaders and the faucet manufacturers’ lobby. Together, they convinced federal and state agencies that twisty knobs were both a hygiene hazard and a national water crisis waiting to happen. By the mid-1990s, new regulations required touchless fixtures in public buildings. It was a golden age for Sloan, Delta, and Moen—millions of units sold, healthy markups, and no doubt some very happy sales reps cashing their commission checks.

Not to be outdone, the paper-towel-dispenser industry saw its moment. They, too, warned of grave sanitary dangers and paper waste. Soon, motion-sensing towel dispensers were mandated in public restrooms across the country. Another technological triumph—and another corporate jackpot.

Decades later, the results speak for themselves. Travelers and office workers everywhere can now be found waving their hands helplessly under silent faucets, then performing interpretive dances before stubborn paper towel dispensers. When all else fails, we dry our hands on our pants and leave muttering about progress.

And please, don’t get me started on the motion-sensitive soap dispensers.

Now the world is pouring billions into Artificial Intelligence (AI) and billions more into the sprawling data centers that power it. The looming crisis we’re told is human inefficiency: employees slow down operations, waste time, and trim profits. The solution, it seems, is straightforward—replace people with AI programs and let the algorithms do the heavy lifting.

What’s curiously absent from the conversation is any concern that by cutting workforces, companies are also shrinking the very customer base that fuels their profits. After all, fewer employees often mean fewer people with money to spend. But that’s a topic for another UPdate.

Last week, the Wall Street Journal reported—again—that employers have committed millions, if not billions, to AI software. The twist? The burden of figuring out how these AI tools will actually help falls squarely on the employees. You’d think the sales teams would have already sold management on potential applications and savings before writing the big checks.

In the November 7, 2025, article titled “Use AI, or You’re Fired”, allegedly penned by Lindsay Ellis (and not her AI bot), she noted,

• “Some companies are training people in how to use the tools—but leaving it up to them to figure out what to use them for. There are countless possibilities for how to deploy AI. Some businesses have required training classes or set up help desks to coach employees on how to incorporate AI into their work. Others are putting the onus on staff to think creatively about how to make money or save time with the tech.

• That can prompt exciting innovations—or it may come at the expense of getting work done. Or both.”

The stakes are high for employees at all levels to stay employed, and the margin for error is even higher. Quickly, a society of “haves” and " nots” is developing among employers, separating those who will drink the Kool-Aid and adopt AI in their daily tasks from those who will not. In the same article, Ms. Ellis states,

• “Rank-and-file employees across corporate America have grown worried over the past few years about being replaced by AI. Something else is happening now: AI is costing workers their jobs if their bosses believe they aren’t embracing the technology fast enough.

• From professional-services firms to technology companies, employers are pushing their staff to learn generative AI and integrate programs like ChatGPT, Gemini, or customized company-specific tools into their work. They’re sometimes using sticks rather than carrots. Anyone deemed untrainable or seen as dragging their feet risks being weeded out of hiring processes, marked down in performance reviews, or laid off. “

It’s not just rank-and-file employees whose future employment is at stake. Executive Greg Coyle, of IgniteTech, found this out the hard way. He had originally brought AI as a potential improvement tool for his company’s products and to add new capabilities. However, he expressed concern that the company was moving too fast, making widespread layoffs in anticipation of AI improving their productivity. He was quoted in the same article, communicating to senior management in 2023 during an executive meeting, that “doing this rapid culling of your workforce, it’s very risky. If your AI plan doesn’t work out the way you expected it to, it’s a huge risk for the business.” His concern is that if the company reduces staff too quickly and AI cannot provide the services to customers as well as staff can, then the company could be at risk of losing customers and declining revenue. A few months later, he was fired. Wow.

Mr. Coyle said, “AI is coming whether we like it or not. You either get on board, or you get left behind.”

So, you either figure out how to incorporate this new unproven widget that your boss spent millions of dollars on, or get fired. A recent Gallup survey reported by the Wall Street Journal found that 40% of U.S. workers who don’t use AI say the main reason is that they don’t believe it can help their work. Don’t tell your boss that, or you know what will happen.

No doubt there are many positive attributes of incorporating AI into your business. Testimonies of people training their AI Primary Assistant to help them prepare for meetings or learn more about themselves. The time spent conversing with your AI Primary Assistant develops an understanding of your responsibilities, along with identifying your strengths and weaknesses. Audrey Miller-Schmidt, an insurance marketing manager in Maryland, has been conversing with her ChatGPT AI Assistant while driving her car. She was quoted in the Wall Street Journal article titled "These AI Power Users are Impressing Bosses and Leaving Co-Workers in the Dust” :

• “I’ll just work through whatever thought process I have going on in my brain,” she says. Her goal isn’t necessarily an “aha” moment behind the wheel. These conversations help ChatGPT learn about Miller-Schmidt, 44, and respond to her prompts better. “I have all of this history now with my AI partner; it knows how I tend to approach problems and where I tend to get stuck.”

Not sure how to respond to her reference to her “AI Partner,” but hopefully it doesn’t replace Mr. Schmidt anytime soon.

What Does This Mean to Me?

Millions and billions are being invested in AI by companies and governments around the world. No doubt AI is not going away and will be permanently incorporated into business culture and processes. However, the rapid rise of valuations of AI companies, many of whom have yet to produce profits, is reminiscent of the 1990s dot-com era. OpenAI, owner of ChatGPT, as a private company, is estimated to have gross revenue in the first half of 2025 of $4.3 billion. However, it is burning through almost $12.1 billion in expenses for a $7.8 billion projected loss. The company must turn a profit as soon as it's digging a huge $15 billion a year hole. As we mentioned in the UPdate, “Signals of a Stock Market Crash”

• “One important historical lesson stands out [from the 1990s]: nearly all the foundational technology developers and manufacturers of the 1990s — such as Intel, Microsoft, AMD, IBM, Google, and Cisco—survived the 2000 market crash. While their stock prices declined sharply, their businesses endured. In contrast, most of the internet-based startups that relied on their technologies went bankrupt.”

With this in mind, SoftBank Group Corp, a Tokyo-listed company, just sold all of its shares of Nvidia, valued at $5.8 billion, to invest $30 billion into OpenAI. OpenAI was recently valued at $500 billion, making it the world’s most valuable private company….without making a profit.

According to billionaire Masayoshi Son, the exchange of Nvidia for OpenAI has already paid off, nearly doubling its earlier investment of $7.5 billion. It remains to be seen how this trade turns out in a few years. We shall see.

In the meantime, there remains more room for growth for investors in this market. The Wall Street Journal reported this weekend:

• “Of the 446 S&P 500 companies to report third-quarter results so far, more than 80% of them beat analysts’ estimates, according to LSEG I/B/E/S data. That is the biggest crop of outperformers since the spring of 2021. But no matter how many times those analysts might have uttered the words, “great quarter, guys,” in recent weeks, the message hasn’t reached stock investors. That 80% of the S&P 500. The S&P 500 is only up 1.3% since October 14. “

We maintain our favorable view of the US economy and stock market. Give us a call or send an email if you have any questions about your investments or financial planning. We welcome the opportunity to assist you and your family in achieving your financial goals.