AI Bubble Bursts, Gen Z Builds: Trades Rise as Wall Street Panics

The AI Bubble Meets the Career Pivot

If you’ve been reading headlines about AI’s supposed “95% failure rate,” you might think the sky is falling. Wall Street certainly does—tech stocks are wobbling, investors are spooked, and articles are declaring the AI boom dead on arrival.

But here’s the twist: while enterprise AI projects burn billions with little to show for it, small businesses and Gen Z workers are thriving. Apprenticeships in trades like plumbing, welding, and HVAC are seeing a surge—sometimes paying six figures before 21.

This isn’t just a career story. It’s a market signal: the future belongs to the adaptive, not the oversized.

Key Takeaways

• 95% of enterprise AI projects fail to deliver ROI, according to MIT research.

• SMBs succeed with AI by being nimble, strategic, and problem-focused.

• Gen Z is pivoting to trades, attracted by high pay, low debt, and job security.

• Skilled trades are gaining prestige as automation anxiety hits white-collar fields.

• SMBs can win big by investing in apprenticeships and trade partnerships.

Wall Street’s AI Panic: Why the Bubble Feels Familiar

MIT’s GenAI Divide report revealed that just 5% of enterprises are seeing meaningful returns on AI. The rest? Wasted billions and plummeting stock prices—Nvidia down 3.5%, Palantir down 9%.

But this isn’t a “death of AI” story. It’s a “death of lazy adoption.” Enterprises threw money at AI like a miracle cure, with no clear strategy. Small businesses, by contrast, can’t afford that kind of recklessness. They adopt thoughtfully—using AI to save time, automate routine work, or open new revenue channels.

👉 Lesson: Don’t fear the AI bust. Fear waste.

Gen Z Chooses the Toolbelt Over the Tie

In San Francisco, young adults are skipping white-collar careers for trades. Why?

• Higher wages: Six-figure salaries before age 21.

• Job security: Only 0.7% unemployment in construction-related grads vs. 7.5% in computer engineering.

• Less debt: Paid apprenticeships vs. costly degrees.

• Union benefits & stability: Tangible security in uncertain times.

As Jeremy put it (at 11:38):

“If you’ve been thinking about starting your business or apprenticeship—there has never been a better time.”

SMBs should take note. Apprenticeship programs aren’t just philanthropy; they’re a pipeline to committed, skilled talent in a tightening labor market.

Transcript Highlights

• On enterprise AI waste:

“They blindly threw money at this thing called AI saying, fix our problems.” (at 01:49)

• On SMB agility:

“Small business owners are like speedboats… zipping around the giant, slow-moving aircraft carriers.” (at 03:13)

• On Gen Z’s timing:

“This is your time to shoot your shot. There is no better time.” (at 12:05)

FAQs

Q: Why are 95% of AI projects failing?

A: Most enterprises rushed in without clear goals or strategy, treating AI as a silver bullet rather than a tool.

Q: Are trades really safer from automation?

A: For the next 10–15 years, yes. Cobots may assist, but complex manual work is still human-driven.

Q: How should SMBs approach AI differently?

A: Start with the problem, not the tool. Use AI to save time, reduce costs, or scale—not as a vague “innovation” mandate.

Q: What does this mean for hiring?

A: Expect more talent entering trades. SMBs should invest in apprenticeships and vocational partnerships to secure skilled workers.

Q: Is the AI bubble bad for small business?

A: Not at all. It actually levels the playing field—nimble SMBs can outpace sluggish enterprises.