AI Implementation Challenges, Strategic Partnerships, Remote Work Dynamics, & Ethical AI Initiatives

[00:00:00] It's Thursday, June 20th, 2024, and I'm Dave Sobel. Four things to know today. Only 10% of companies are successfully scaling generative AI projects, per McKinsey. KPMG and Enable lead on AI initiatives with a focus on empowerment and responsibility.

[00:00:18] Huntress secures a major investment, what it means for the managed security landscape, and the pitfalls of activity-based surveillance. Well far goes firings, sparking some debate. This is the Business of Tech. So let's start with this. So far, not many are making money on implementing AI.

[00:00:38] A Gartner study found that the top barriers to AI implementation were demonstrating value at 49% and talent shortage at 42%. Additionally, only one in four companies surveyed by Lucidworks reported successful implementation of a generative AI project. And McKinsey's survey revealed that only 10% of companies are implementing generative AI

[00:01:01] projects at scale, with just 15% seeing any positive impact on earnings. Complexity, outdated technology techs, and data readiness are key factors slowing progress. Companies are advised to focus on a limited dataset, reuse what works, and have a centralized approach to AI implementation.

[00:01:20] While there are challenges to overcome, companies must start with something that works and show value and build from there. An Accenture conducted a multi-year survey of over 3,000 executives across 19 industries and 10 countries to compile a report on effectively utilizing artificial intelligence.

[00:01:38] The study aimed to compare how different organizations leverage AI. The report emphasizes the importance of reinvention in unlocking firms' potential for AI. This involves transforming the entire organization, investing in talent strategy, breaking down silos, embracing new ways of working, and continuously seeking reinvention.

[00:01:58] By doing so, firms can drive growth and productivity, enhance the user experience, tap into data-driven decision making, accelerate innovation, manage risk, scale their business, empower employees, and optimize resources. And contrary to fears of AI-driven job losses, a report by Manpower Group reveals that 55%

[00:02:18] of employers worldwide plan to increase headcount in the next two years due to AI. The energy, utilities, and information technology sectors will most likely expand their workforce due to AI adoption. However, 31% of employers face challenges in AI adoption due to a lack of skills in their workforce.

[00:02:39] So why do we care? Complexity, outdated technology stacks, and data readiness identified as key factors slowing down progress means fixing those is the opportunity. I want to highlight that those are opportunities regardless of AI or not, and it's why there's opportunity now even without implementing AI-based products.

[00:03:01] Ensuring data quality, availability, and integration across the organization is critical for successful AI implementation or for a data analytics one. Implement a centralized approach to AI governance to ensure cohesive efforts and resource allocation while the strategy can help avoid duplication in siloed projects.

[00:03:19] And those two statements are still true without AI. A strategic approach that focuses on small wins, centralized governments, and continuous innovation will be critical in realizing the full benefits of AI or technology across industries. Data migrations are complex and irritating, creating days of frustration from setup to

[00:03:42] cut over. Movebot was built from the ground up to fix that. Movebot is the simplest and fastest data-moving tool there is. Fully hosted with no infrastructure, no virtual machines, none of that. Sign up, connect, scan, and you'll be moving data in minutes.

[00:03:59] Techs of all levels can now move terabytes per day with Movebot. The magic lies in how Movebot simplifies and autoscales your migration with modern cloud technology, handling proprietary doc types, file name sanitization, permissions, and cut over with detailed reporting and alerting at every step.

[00:04:19] Start moving data like a pro at movebot.io. And earlier this week, I talked to McDonald's ending their AI drive-thru experiment. Well, White Castle is using SoundHound's Voice AI system to take drive-thru orders at 15 restaurants, aiming to free up staff time and ensure customers don't feel rushed.

[00:04:40] While Voice AI drive-thrus have been tested by other chains like Taco Bell and McDonald's, widespread adoption is still limited due to mistakes and concerns about job displacement. White Castle plans to expand the use of Voice AI in over 100 drive-thru lanes by the end of this year.

[00:04:57] The system has improved order accuracy and allowed workers to focus on food preparation and customer service without reducing hours. KPMG has launched the AI Impact Initiative to bring AI technology to nonprofits and prepare the future workforce with AI skills.

[00:05:13] The initiative aims to empower nonprofits to maximize the benefits of AI and provide skills-based volunteering. KPMG is collaborating with various organizations and technology partners to implement AI solutions and invest in skills building. The initiative also focuses on preparing students and educators for an AI-powered future.

[00:05:33] KPMG's annual U.S. Community Impact Day will include opportunities for AI upskilling. Enable has issued a pledge on the responsible use of artificial intelligence, emphasizing consent, transparency, and context. The pledge aims to protect partner data and intellectual property, and the company's

[00:05:52] AI strategy focuses on user control, privacy, clear communication, and appropriate use. Enable committed to unlocking AI's potential responsibly and maintaining an ethical approach with human oversight. Why do we care? AI experimentation is what White Castle is doing, and McDonald's too.

[00:06:12] There will be failures, and the key is learning from those. KPMG is leveraging its position to broaden its reach. It's savvy. I'll applaud Enable for releasing their pledge and would anticipate it's part of a step to be releasing products under the pledge. Disclosure, I am a shareholder.

[00:06:31] There are a ton of announcements to go over too. SecureFrame has launched its Comprehensive Service Partner Program with compliance automation tools, resources, and international support. The program offers benefits such as a self-service console, usage-based billing, dedicated partner managers, and marketing materials.

[00:06:50] SecureFrame also plans to expand its presence in the EMEA region and supports European customers with EU-specific frameworks. Produce 8 has launched its Managed Service Provider Partner Program, offering advanced work analytic tools to help MSPs enhance productivity, optimize operations, and improve employee experience.

[00:07:10] The program provides technical support, marketing resources, training materials, and flexible partner tiers. Ingram Micro has become the first U.S. distributor to achieve Fortinet's Engaged Preferred Services Partner designation. This exclusive certification highlights Ingram's specialized training, enablement, and professional services capability in Fortinet security.

[00:07:33] CloudScale 365 announces the formal rollout of its co-managed IT service designed to support CFOs and CIOs in small and medium enterprises. This service offers scalability, flexibility, cost savings, and access to enterprise-grade technology and 24x7 support. CloudScale 365 has a global customer base of over 3,300.

[00:07:57] Huntress has closed a $150 million Series D funding round led by Kleiner Perkins, Meritech Capital, and Sapphire Ventures. The investment will be used to develop new products and strengthen the Huntress Managed Security Platform. PIA, the AI-led automation platform for managed services providers, has introduced a new usage-based

[00:08:19] pricing model for its partners. This model offers cost control, flexibility, and transparency, allowing partners to pay for their use and adjust platform usage according to business needs. PIA continues to offer fixed pricing plans with unlimited usage for partners who prefer simplicity and predictability. Why do we care?

[00:08:40] Most of this is very tactical, so I leave it to you to understand if it's useful for you. On Huntress, I want to observe that Datto also built a large war chest before they IPO'd, in some cases raising more money than they needed.

[00:08:53] There's no strategy shift here, and we're watching for any changes in leadership or ownership rather than investment. Wells Fargo fired workers for using mouse jigglers to fake working, highlighting the challenge of measuring productivity for knowledge workers.

[00:09:12] Measuring activity, such as time spent at a desk or keystrokes, is a weaker form of management compared to evaluating results. Remote work has exacerbated the push for employees to appear busy, leading to worker burnout. They fired employees for simulating keyboard activity, and according to polls, surveillance

[00:09:30] tools raise ethical concerns and negatively impact morale. While remote work has not affected overall productivity, the rise of surveillance tools poses a risk in keeping workers happy. Dell workers are rejecting the company's push to return to the office and choosing to stay remote instead.

[00:09:49] Nearly half of Dell's full-time U.S. staff have opted to work remotely, even though it means giving up the chance of promotion. Employees cite remote work's personal and financial benefits, such as more time with family and lower commuting costs.

[00:10:03] Some workers have no office to return to, while others find it unnecessary to show up due to the nature of their work. The new policy has led some employees to consider leaving the company. Why do we care?

[00:10:17] The reliance on tools that measure activity, such as time at a desk or keystrokes, reflects a dated management approach. These metrics can be easily manipulated and do not necessarily correlate with productivity or output quality. The method emphasizes quantity over quality, potentially leading to burnout as employees

[00:10:36] strive to serve busy and look busy rather than focusing on meaningful work. Dell's situation further exemplifies the tension between management and employee preferences in the post-pandemic workplace. Nearly half of Dell's full-time staff have chosen to remain remote, even at the expense of potential promotions.

[00:10:56] This decision really does highlight the value employees place on the benefits of remote work. Forcing employees back to the office, especially when their work can be effectively performed remotely, can lead to dissatisfaction and attrition. Let's assume that's the intended outcome. Layoffs without the layoffs.

[00:11:15] Emphasizing results over activity and respecting employee preferences for remote work can lead to a more motivated, loyal, and productive workforce. That's the key to good culture building at your organization. Thanks for listening. Did you know that we did National Hike with a Geek Day?

[00:11:31] That's super specific, so more broadly it's also National Ice Cream Soda Day. If you got a comment or a thought, put it in the comments if you're on YouTube or reach out on LinkedIn if you're listening to the podcast. And the number one thing you can do?

[00:11:44] Share the show with a friend or colleague. Really would appreciate you helping me grow the audience. I will talk to you again tomorrow. The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines.

[00:11:58] If you like the content, please make sure to hit that like button, follow or subscribe. It's free and easy and the best way to support the show and help us grow. You can also check out our Patreon where you can join the Business of Tech community at

[00:12:15] patreon.com slash MSP radio or buy our Why Do We Care merch at businessof.tech. Finally, if you're interested in advertising on the show, visit MSP radio.com slash engage. Once again, thanks for listening to me.

[00:12:32] I'll talk to you again on our next episode of the Business of Tech. Part of the MSP radio network.