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Budgets Tell the Truth: Who’s Really Serious About AI
November 7, 2025
Over the past year, I've witnessed something remarkable finally taking shape across the Borderland. Artificial Intelligence isn't just tech jargon anymore, it's quietly becoming part of how El Paso thinks about growth. From the first local products to the rise of regional AI data centers, the shift has begun, slower than other large MSA's, but undeniably underway.
"These weeds are out of control."
El Paso's AI Inflection Point
Everywhere I go in El Paso, from coffee shops to coworking spaces, the same question keeps coming up: “We know AI is the future, but where do we even start?” That mix of curiosity and hesitation perfectly captures the current moment for Borderland businesses. There’s excitement in the air, but also a sense of cautious observation as leaders try to understand how AI fits into their operations.
At STTE’s recent AI Hackathon at UTEP, that feeling was front and center. Entrepreneurs, educators, and business owners weren’t asking if AI mattered — they were asking how to use it right.
One local investor told me that investor attention remains centered on AI startups, as execution continues to be the key differentiator. The numbers back it up. According to Crunchbase, global funding for AI-related startups topped $100 billion in 2024, an 80% jump from the previous year. The pace of innovation is relentless, and those who learn to adapt early are already pulling ahead.
But growth in one area often leads to disruption in another. According to Challenger, Gray & Christmas, employers announced 153,074 job cuts in October 2025 — the highest for that month in more than 20 years — with automation and AI cited among the main causes. These shifts signal more than just layoffs; they represent a fundamental rebalancing of how companies are staffing their teams. Many are moving away from large, fixed workforces and instead relying on specialized AI contractors who can deliver faster, more targeted results.
That trend is reflected globally. The software development outsourcing market is projected to grow from $534.9 billion in 2024 to nearly $940 billion by 2034, driven by demand for cost-efficient, scalable, and specialized AI solutions.
As the private sector races to adopt and adapt, the education system, the foundation for tomorrow’s workforce, is still finding its footing in this new AI-driven landscape.
The Borderland’s Next Lesson: AI Literacy
Education is moving more slowly toward system-wide AI adoption, but momentum is building. In reviewing multiple regional district strategic plans, I found several with little to no mention of AI at all — a concerning gap given how transformative it will be for the workforce of tomorrow.
While universities are beginning to integrate AI into research and coursework, K–12 systems remain cautious, often blocking access to AI tools entirely on school networks. This creates a paradox: the very students who could benefit most from learning to use AI responsibly are being limited by outdated policies.
The need to balance innovation, privacy, and security is understandable, but time is not on our side. If local education systems don’t begin evolving soon, the Borderland’s future workforce will be playing catch-up before it even begins.
Industry at a Crossroads
Across industries, the potential gains are clear: faster marketing, higher sales, better customer service, and streamlined productivity. But the real challenge isn't whether AI can help — it's how to choose from the thousands of tools that seem to launch every month.
As someone who’s spent years helping startups and witnessing the speed at which they operate, I know how critical those choices are. Startups live and die by the efficiency of their tech stacks. The same logic applies to local companies — those who embrace AI early, test fast, and adapt will win.
And like the out-of-control weeds that overrun the Sun City after a summer monsoon, AI is spreading fast — across every sector, in more forms than most can count. There are powerful platforms, scrappy startups, and countless variations sprouting daily. Some business leaders are learning to cultivate and guide these “AI weeds,” integrating them into their operations strategically. Others, unsure where to start, are letting them grow wild, a perfect metaphor for how unmanaged AI adoption can quickly get out of control.
That's why the next phase of growth in the Borderland won't be about stopping AI — it will be about learning how to shape it.
Top Three Industry Trends in AI Adoption
Before moving forward, it’s worth taking a moment to share insights and a few practical ways to put AI into action. AI adoption today isn’t about replacing people, it’s about retraining systems to work smarter. Across industries, three key trends are now shaping how businesses in the Borderland are evolving and gaining a competitive edge.
1. Rethinking Strategy with AI
Across the country, organizations are realizing their strategic plans no longer reflect the speed of change. What used to be a five-year plan now needs real-time data and adaptive intelligence.
That’s why many leaders are turning to tools like MoveThePlan’s Strategic Boost, which uses AI to transform static strategies into living, measurable roadmaps for growth.
Tip: Revisit your current strategic plan and ask if it mentions or addresses AI. If it doesn’t, it’s time to boost your plan. Try Strategic Boost for free.
2. Productivity Powered by AI
Businesses are embedding AI into everyday workflows to save time and increase efficiency. From transcription bots that capture and summarize meetings to systems that generate reports and proposals automatically, automation is now driving measurable productivity gains.
Tip: Start small with tools like Otter.ai or Fathom to record meetings and auto-generate action items. Small, consistent time savings can multiply into major performance boosts across your organization.
3. Smarter Customer Engagement
AI is transforming how companies connect with customers. Intelligent chatbots now manage service requests, personalize offers, and provide around-the-clock support, leading to higher satisfaction and retention.
Tip: For example, Borderland business owners can start with a free no-code chatbot tool like Thinkstack to automate initial customer interactions and test how AI improves responsiveness.
These trends aren’t reserved for tech giants; they’re reshaping small and midsize businesses across the Borderland. Start with one initiative, measure the results, and build momentum. In an economy evolving this fast, the smartest move isn’t to wait for the future, it’s to design it.
The Borderland's Opportunity
El Paso may be a few steps behind other metros in AI adoption, but that’s also its greatest opportunity — to leapfrog by learning from others’ mistakes and building smarter from the start.
Imagine vertical data farms rising beside our industrial parks and campuses — facilities that not only power AI but also train the next generation of local talent to manage, analyze, and innovate with it. Picture students, startups, and companies collaborating across sectors to transform the Borderplex into a hub of applied intelligence and human creativity.
With the right balance of experimentation, security, and education, the region can become a national model for practical, people-centered AI innovation — where technology doesn’t replace community values but amplifies them.
The AI Line Item
For business leaders serious about sustainable adoption, AI can no longer be treated as a side project. It deserves its own line item in the annual budget. Every CEO should earmark funds for AI Professional Development, to upskill staff and drive internal adoption, and AI Contracting, to engage external specialists who can rapidly deploy secure, high-impact solutions.
According to IBM’s Institute for Business Value, companies in the retail and consumer-products sector plan to allocate 3.32 percent of their revenue to AI by 2025, a clear signal that AI investment is shifting from experiment to essential strategy.
This dual investment model empowers leaders to measure progress versus cost year over year, transforming AI from a buzzword into a tangible, trackable growth driver that keeps businesses ahead of the curve.
3.32%
Revenue to AI by 2025
Retail & Consumer Products
The Road Ahead
In the Sun City and across the Borderland, AI isn’t on the horizon anymore, it’s already here, reshaping how we learn, work, and build. The question isn’t whether AI will change business, it already is. The question is how fast our region adapts, aligns, and leads.
The Borderland’s classrooms and companies are on the same journey, each learning to use intelligence — human and artificial — to create value in new ways. Those who bridge the gap between education and industry will define the next decade of growth.
If you’re ready to see where your organization stands and how AI can accelerate your mission, my team at MoveThePlan.com, in partnership with El Paso Labs, can help you build that bridge. Together, we design practical, secure, and scalable AI solutions for businesses, schools, and civic organizations across the region.
El Paso Labs brings world-class development expertise, from automation systems to custom software that helps local companies compete nationally. Combined with MoveThePlan’s AI-driven strategic blueprints, we’re helping the Borderland not just prepare for the future — but shape it.