AI Integration, Consulting Shifts, Tech Fatigue, and Privacy Concerns

[00:00:02] It's Friday, October 4th, 2024, and I'm doing so many three things to know today.

[00:00:07] Kindrel's co-pilot strategy in the next AIs from Google and OpenAI,

[00:00:12] AI strategy and consulting's future, why smaller agile firms are poised for growth,

[00:00:17] and our new technology's backfiring, smart glasses, app fatigue, and Apple's social app shakeup.

[00:00:24] This is the Business of Tech.

[00:00:28] Kindrel has launched services to facilitate the adoption of co-pilot from Microsoft 365,

[00:00:34] aiming to enhance AI integration and business outcomes for enterprises.

[00:00:38] The services include data solutions, user interface design, and continuous improvement reporting tailored to each client's unique AI strategies.

[00:00:48] Kindrel's expertise in customizable offerings including a co-pilot value discovery workshop,

[00:00:54] support organizations in implementing co-pilot effectively and maximizing its benefits.

[00:01:00] Gemini 1.5 Flash 8B is now production ready, offering a 50% lower price, double the rate limits,

[00:01:07] and reduced latency compared to its predecessor.

[00:01:10] Developers can access it for free via Google AI Studio and the Gemini API.

[00:01:15] The model is optimized for speed and efficiency, performing well in tasks like chat and long context translation.

[00:01:24] It features the lowest cost per intelligence among the Gemini models, with billing starting on October 14th for the paid tier.

[00:01:32] The model supports up to 4,000 requests per minute, enhancing its utility for high volume tasks.

[00:01:37] An open AI has launched a new feature called Canvas for ChatGPT, designed to enhance collaboration for coding and writing projects.

[00:01:46] This interface allows users to work alongside ChatGPT without losing context, providing shortcuts for editing, adjusting content and coding tasks.

[00:01:56] Canvas will open automatically when helpful scenarios are detected and is available in beta for ChatGPT plus-in-teams users

[00:02:04] with broader access plan for enterprise and education users in the near future.

[00:02:09] Why do we care?

[00:02:11] A bit AI heavy the past day or two as there seems to be some movement on creating business outcomes with the technology.

[00:02:18] So I started with Kindral, which is a very large IT services organization, specifically touting that they've launched services directly to make AI useful for organizations.

[00:02:28] The AI landscape is becoming less about access to technology and more about effectively leveraging it to drive business outcomes.

[00:02:36] Tailoring AI to specific business needs, ensuring data integrity and offering continuous optimization are areas providers can develop as value-added services.

[00:02:46] Google and OpenAI's announcements are about the specific capabilities to watch.

[00:02:50] Kindral is about how to make it real for customers.

[00:02:53] Looking to reach an audience of thousands of MSPs and IT service providers?

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[00:03:36] I'm looking forward to that discussion.

[00:03:40] I have so many big ideas this week that I'm actually breaking them into two groups.

[00:03:44] CIO dive highlights how CIOs are increasingly relying on the NIST risk framework to mitigate the risks associated with generative AI.

[00:03:53] Discover Financial Services exemplifies this approach by implementing specific guardrails and monitoring strategies to ensure safe deployment.

[00:04:02] The NIST framework outlines over 200 risk mitigating actions focusing on broad risks like data privacy and harmful bias.

[00:04:09] As enterprise navigate the complexities of generative AI, they're urged to prioritize risk management while adapting to evolving regulations and technology.

[00:04:18] And despite the challenges there's a growing urgency among CIOs to move beyond experimentation and establish responsible practices for AI integration.

[00:04:28] And Phil Asop writes that the professional services sector is undergoing significant transformation driven by technological advancements,

[00:04:36] evolving client expectations and economic challenges.

[00:04:39] Firms are shifting toward a data-driven approach embracing AI to enhance efficiency and insights while centralizing client data to overcome fragmentation.

[00:04:49] Cultural resistance to data sharing poses challenges yet the reliance on data for strategic decision making is increasing.

[00:04:56] Additionally, firms are evolving their client listening strategies to gather continuous feedback, leveraging AI to analyze data and predict client behavior,

[00:05:06] ultimately fostering a client-centric approach that's essential for thriving in the new information age.

[00:05:13] And business insiders see some of that too.

[00:05:15] The appeal of consulting firms like McKinsey and Accenture has diminished with increased employee turnover

[00:05:22] and a shift in perception among younger workers who now view these roles as temporary stepping stones rather than long-term careers.

[00:05:31] Many former consultants are leaving for more fulfilling opportunities in tech and startups, citing demoralizing work conditions and a lack of connection in remote settings.

[00:05:42] And despite high application rates the industry's allure is waning as employees seek more meaningful work experiences.

[00:05:50] And one useful thing has been lingering in my mind this week with their article, How to Use AI in your Organization.

[00:05:58] In the integration of AI in organizations there's a disparity between individual productivity gains and overall organizational performance.

[00:06:07] The author suggests leveraging both crowd and lab approaches, encouraging employees to share their AI experiments while also establishing a centralized lab

[00:06:18] to develop benchmarks and tools.

[00:06:20] The key point is that companies need to conduct their own R&D on AI use as external solutions may not fit their unique contexts.

[00:06:31] Now why do we care?

[00:06:33] I'm most interested here in one useful thing's take.

[00:06:36] Organizations need AI that fits their specific workflows, data structures, and goals.

[00:06:41] For service providers this presents an opportunity to offer bespoke AI services, helping companies conduct internal R&D with an eye to developing the governance and data management guidelines to be successful.

[00:06:55] There's a critical need to quantify AI's organizational impact, an area where IT consultants can offer strong expertise.

[00:07:02] And that's why I paired this article with the other three.

[00:07:05] Consulting is increasingly seen as a stepping stone, not a long-term career, especially among younger professionals who are craving meaningful work and a better work-life balance.

[00:07:16] Here's the good news.

[00:07:17] Smaller organizations which are closer to the customer and deliver solutions with the advice are much more meaningful in their work.

[00:07:24] The professional services sector is undergoing a technology-driven transformation, with firms increasingly embracing AI and data-centric models to enhance efficiency and overcome fragmentation.

[00:07:36] Again, good news for agile smaller organizations.

[00:07:40] It's all about managing change, fostering innovation, and balancing that risk and reward.

[00:07:44] Companies that get these elements right will not only survive in the new AI-driven landscape, but thrive, creating a sustainable, scalable growth through thoughtful, strategic AI adoption.

[00:07:57] Service providers are poised to play a pivotal role in helping businesses achieve this transformation.

[00:08:05] And the other set of big ideas are the ones about technology broadly.

[00:08:08] 404 Media reveals that Harvard students have developed a project called IXRAY, which combines Meta's Ray-Ban smart glasses with facial recognition technology to identify individuals and retrieve personal information such as phone numbers and addresses.

[00:08:26] The system streams video to Instagram, matches faces with publicly available images, and retrieves personal information from various sources.

[00:08:34] While the technology demonstrates the potential risks of data exposure, the creators do not plan to release their code due to its potential for misuse, aiming instead to raise awareness about privacy in the AI era.

[00:08:49] Did Apple just kill social apps?

[00:08:51] From the New York Times.

[00:08:52] Apple's iOS 18 introduces changes to contact sharing permissions that may hinder the growth of new social apps by allowing users to selectively share contacts, potentially reducing the number of connections for new users.

[00:09:07] While Apple argues this enhances user privacy, developers fear it could disadvantage them against established platforms like Facebook and Instagram, which benefit from existing user networks.

[00:09:19] The changes may lead to a shift away from friend-based social apps toward content-driven platforms like TikTok.

[00:09:27] And on Wednesday's live show, Carol and April mentioned the idea of tech fatigue.

[00:09:33] While the Atlantic looked at the overwhelming proliferation of apps in daily life, highlighting how nearly every aspect of modern living has been turned into an app from shopping and transportation to health and education.

[00:09:46] While apps were initially designed to enhance convenience and efficiency, they become a source of frustration dear to the sheer number of them in complexity, leading to a bureaucratic experience that complicates simple tasks.

[00:10:01] There's concern that this trend will continue unabated as apps invade every facet of life, making it impossible to escape their influence.

[00:10:10] The title says it all. Please don't make me download another app.

[00:10:15] Why do we care?

[00:10:17] And these articles are about the impact that may not have been expected. We see a common theme, the collision of technology advancement with user fatigue, privacy concerns, and shifting industry dynamics.

[00:10:29] While the technological capabilities are impressive, whether it's AI-powered facial recognition, tighter privacy controls, or the convenience of apps, the user experience and ethical considerations are lagging behind.

[00:10:41] The future of tech isn't just about creating new tools. It's about creating better experiences and safer, more transparent systems than power users rather than overwhelm or exploit them.

[00:10:55] Thanks for listening. Today is National Taco Day, National Cinnamon Roll Day, and National Vodka Day. I mean, what more do you need?

[00:11:03] It's also Improve Your Office Day. I'll only do that one before the vodka.

[00:11:08] I'll be doing two live broadcasts as part of SMB TechFest on October 17th and 18th, so make sure to sign up and join the event, smbtechfest.com slash go slash sobel. Link in the show notes.

[00:11:21] This weekend you'll get the live show and the podcast feed with that conversation with Carolyn April. And also my interview with Craig Petronella about compliance and his big ideas on the CMMC rollout.

[00:11:35] I look forward to talking to you again on Monday. Have a great weekend.

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[00:12:18] Once again, thanks for listening to me. I'll talk to you again on our next episode of the business of tech.