AI Adoption Challenges, FTC Subscription Rule Changes, and New Tech Innovations for Businesses

[00:00:02] It's Tuesday, October 22nd, 2024, and I'm Dave Solt. Three things to know today. CIOs see AI as transformative, but data infrastructure takes priority in budget allocation. The FTC's revised subscription rule targets transparency impacting providers with new cancellation requirements. And IBM Granite, NVIDIA, and Intel all rolling out advanced AI models and tools focusing on enterprise and SMB markets.

[00:00:30] This is the Business of Tech.

[00:00:34] A recent Salesforce survey reveals that 84% of chief information officers believe artificial intelligence is a game changer for businesses. However, only 11% have fully implemented AI systems.

[00:00:47] The survey, which included 150 verified CIOs from companies with over 1,000 employees, indicates that while strong executive support for AI exists, 68% of CIOs feel their business partners have unrealistic expectations regarding the return on investment.

[00:01:05] CIOs allocate four times more of their budgets to data initiatives than to AI projects, with a median of 20% spent on data management compared to just 5% on AI.

[00:01:18] The survey highlights that CIOs prioritize data security and infrastructure before diving deeper into AI adoption.

[00:01:25] With 75% of CIOs describing their organizations as being in the experimental stage of AI adoption, it's evident that while the potential of AI is recognized, many organizations are still navigating the best path forward.

[00:01:40] A recent report from MIT Technology Review Insights in partnership with Snowflake reveals that 78% of businesses are hindered in capitalizing on artificial intelligence due to inadequate data foundations.

[00:01:54] The report highlights that 95% of organizations face challenges implementing AI, and only 22% of business leaders feel ready to engage with AI technologies.

[00:02:06] Key findings show that 72% of businesses aim to enhance efficiency with generative AI, yet many struggle with data governance and quality.

[00:02:14] Barris Gutliken, head of AI at Snowflake, emphasizes that a robust data foundation is essential for unlocking AI's potential and driving market innovations.

[00:02:25] Companies that have invested in strong data strategies are beginning to see the benefits of AI, reinforcing the need for organizations to prioritize their data foundations.

[00:02:34] A recent study by researchers at Lehigh University and Seattle University reveals that emphasizing human biases can enhance patient acceptance of AI in healthcare.

[00:02:46] Nearly 1,900 participants were involved in six experiments demonstrating that when patients were reminded of inherent biases in human decision-making, they viewed AI as more trustworthy and fair.

[00:02:58] The findings indicate that while many still prefer human healthcare, awareness of bias significantly reduced resistance to AI recommendations.

[00:03:08] Why do we care?

[00:03:10] We can learn a lot from medicine about the application of communications.

[00:03:14] Remember, we've seen data that AI can be more empathetic than some doctors, and while AI is biased, so are humans.

[00:03:22] There isn't a perfect solution out there. Providing context is key for using these tools.

[00:03:28] AI is about data. Data management, data governance, and establishing the foundation for data is the key unlock right now.

[00:03:36] And also, very useful even without applying AI.

[00:03:42] Thread has declared death to the ticket.

[00:03:45] Did you know tickets date back to the 1800s? And customers hate tickets.

[00:03:50] Thread uses an approach for connecting, communicating, and ultimately, collaborating.

[00:03:56] Thread allows people to come together around a topic.

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[00:04:04] The future of service is collaborative.

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[00:04:39] The Federal Trade Commission has announced significant revisions to its Negative Option Rule, now called the Rule Concerning Recurring Subscriptions and Other Negative Option Programs.

[00:04:51] These changes aim to enhance consumer protection by preventing misleading enrollment tactics and ensuring transparent billing practices.

[00:04:59] The final rule will take effect in 180 days, with some provisions starting within 60 days.

[00:05:05] Notably, the rule applies to nearly all negative option marketing, including automatic renewals and free trial offers, covering business-to-business and business-to-consumer transactions.

[00:05:17] Businesses must disclose all material terms clearly before consumers enroll, obtain proof of consent before charging, and provide an easy cancellation method, commonly referred to as click-to-cancel.

[00:05:39] The U.S. Federal Trade Commission is also investigating Deering companies' repair policies, which may infringe on customers' right to repair their purchased equipment.

[00:05:50] This probe, authorized on September 2nd of 2021, was revealed through a filing by Hargrove & Associates, which is not a target of the investigation.

[00:06:00] The tractor manufacturer is already facing lawsuits from U.S. farmers over similar antitrust concerns.

[00:06:07] The Federal Communications Commission has announced new regulations requiring all smartphones in the U.S. to be compatible with hearing aids.

[00:06:14] This includes implementing Bluetooth pairing standards to prevent proprietary technology that limits compatibility.

[00:06:21] The FCC emphasizes the need for improved volume control, ensuring clearer audio for all users, not just those with severe hearing loss.

[00:06:31] New product labeling must also inform consumers about hearing aid compatibility and specific requirements.

[00:06:37] The transition period for manufacturers will span up to 42 months, aligning with ongoing public health efforts to enhance hearing aid accessibility.

[00:06:46] And the deadline for EU member states to begin applying the new cybersecurity law in NIST-2, which expands the scope of cybersecurity regulations across various sectors, including energy and healthcare, has now come and gone.

[00:06:58] New features of NIST-2 include stricter security obligations that require entities to report significant incidents within 24 hours and direct accountability from management bodies for cybersecurity measures.

[00:07:11] Noncompliance can lead to fines of up to €10 million or 2% of global turnover.

[00:07:17] Why do we care?

[00:07:19] The subscription rules are going to be important for vendors serving MSPs as well as MSPs themselves.

[00:07:25] If you offer a subscription, you will need to ensure the ability to cancel.

[00:07:30] This is also something you must now note with your vendors too.

[00:07:33] It has to be easy to cancel as much as it's easy to start.

[00:07:37] MSPs frequently offer services on a subscription basis, whether for IT support, cloud services, security solutions, or software tools.

[00:07:46] The FTC's new rule requires clear and transparent billing with material terms presented up front before consumers or business clients are enrolled in any service.

[00:07:57] MSPs must audit their subscription processes now, ensuring that terms are clearly communicated and clients can cancel services as easily as they sign up.

[00:08:07] This includes making sure that all free trial offers or automatic renewals follow these new rules.

[00:08:14] To say nothing of right of repair or NIST-2.

[00:08:19] Don't forget IBM in the AI world.

[00:08:22] IBM has launched the third generation of its Granite large language models to enhance enterprise AI capabilities.

[00:08:28] With a significant $2 billion in business related to generative AI, IBM's new models include options with $2 billion and $8 billion parameters and advanced mixture of experts models.

[00:08:41] The models, trained on 12 trillion data tokens, are designed for various enterprise applications such as customer service and cybersecurity.

[00:08:49] Importantly, these models are released under the Apache 2.0 open source license, offering flexibility for enterprise partners.

[00:08:56] And NVIDIA has unveiled its new AI model, LAMA 3.1 Neomatron 70B Instruct, which reportedly outperforms competitors like OpenAI's GPT-4 and Anthropics' Claude 3.5 Sonnet.

[00:09:12] The model achieved impressive scores, including 85 on an Arena Hard benchmark and 57.6 on an APACA Eval 2LC, showcasing its advanced language understanding capabilities.

[00:09:25] The company emphasizes the model's ability to handle complex queries without additional prompting, aiming to provide businesses with a robust and cost-efficient AI solution.

[00:09:36] However, NVIDIA has cautioned that the model may not be suitable for specialized domains such as mathematics or legal reasons.

[00:09:44] And Intel has launched the AIPC S&B App Pack, a new software suite to empower small and medium-sized businesses to leverage artificial intelligence for improved operations.

[00:09:54] The package, which will be bundled with Intel-powered PCs globally, includes applications like Generate by Iterate.ai for on-device AI processing,

[00:10:04] Lap Link PC Mover Business for easier PC migrations, and CrowdStrike Falcon Go for enhanced cybersecurity.

[00:10:12] Dropbox has launched Dash for Business, an AI-driven universal search tool aimed at helping teams effectively manage and secure content across various applications.

[00:10:22] Designed to address the challenges of information fragmentation, Dash allows users to search through multiple disconnected apps, including Google Drive and OneDrive, all from one interface.

[00:10:33] Key features include universal search capabilities, advanced content access control, and the Answers function for generating insights.

[00:10:42] LevelBlue, a managed cybersecurity company spun out from AT&T, has announced four new security services for managed security service providers and managed service providers, set to launch in the first quarter of 2025.

[00:10:55] These services include managed threat detection and response, incident response retainer, managed vulnerability, and managed endpoint security, all integrated with LevelBlue's USM Anywhere platform.

[00:11:08] The rubric has launched its data security posture management for Microsoft 365 co-pilot, aimed at enhancing the security of sensitive data within the Microsoft 365 environment.

[00:11:18] This tool helps organizations manage access controls, identifying and preventing potential data exposure due to misconfigurations.

[00:11:25] The service is now generally available, allowing businesses to prepare their Microsoft 365 setup for secure co-pilot use, and aims to reduce excessive permissions and fix data sensitivity label issues.

[00:11:39] Logicalis has launched its Sustainable IT Solutions Blueprint, which aims to help customers enhance their sustainability efforts.

[00:11:46] Initially rolled out in the UK and Ireland, the initiative focuses on reducing carbon emissions through five key components, including sustainability maturity assessments and smart building solutions.

[00:11:59] Why do we care?

[00:12:01] Well, this release marks a significant shift for NVIDIA, traditionally known for its GPU hardware, as it ventures into sophisticated AI software development.

[00:12:10] IBM 2 and the model game, these are big enough players to consider them important.

[00:12:16] The consistent thread here is AI's integration into enterprise workflows and security, offering new service models for providers.

[00:12:23] There's a strong case for focusing on solutions that blend AI innovation with practical, deployable tools for businesses of all sizes.

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