AI Revolution: Microsoft, Google, and LinkedIn Transforming the Workplace, Like it or Not

[00:00:02] It's Thursday, January 16th, 2025, and I'm Dave Sobel. Three things to know today. Microsoft, Google, and LinkedIn are pushing AI tools what it means for your workday, what the potential TikTok ban says about government regulation, and big tech ideas, AI models, IT services, and why people still matter. This is the Business of Tech.

[00:00:26] Microsoft has relaunched its free AI chat service for businesses, now called Microsoft 365 Copilot Chat, which includes access to AI agents for a monthly fee of $30 per user. The service is designed to enhance workplace productivity by allowing users to upload files and interact with AI for tasks like managing emails and automating workflows.

[00:00:47] The pricing model for using the agents is based on message consumption, with a message costing $0.01 while generative responses are priced at $0.02 and those accessing Microsoft data can cost up to $0.30. The free service utilizes OpenAI's GPT-4 and allows users to create AI agents in languages like English and Mandarin for various functions, including market research and meeting preparation.

[00:01:13] However, premium features such as summarizing Teams calls and generating PowerPoint slides requires a monthly subscription of US $30 from Microsoft 365 Copilot. Microsoft aims to encourage businesses to adopt this service, which has already seen significant user engagement since its previous iteration as Bing Chat Enterprise.

[00:01:35] According to Jared Spirato, Microsoft's Chief Marketing Officer of AI, the goal is to familiarize users with AI in their daily work, ultimately increasing the likelihood of upgrading to the full Copilot service. Google is integrating its full Gemini experience into its workplace business and enterprise plans, eliminating the previous additional fees of $20 to $30 per user per month for the Gemini add-on.

[00:02:03] This change reflects Google's belief that artificial intelligence will fundamentally transform work processes. As a result, all workspace tiers will see a price increase of a couple dollars per month. For example, a customer on the Workspace Business Standard plan, previously paying $32 per user per month, will now pay just $14 per user per month, which is only $2 more than the previous rate without Gemini.

[00:02:29] The new pricing will take effect for new customers immediately and for existing customers starting March 17. Google assures that it will not use customer data for training models without permission, and the rollout of the Gemini features is expected to begin immediately for Workspace customers.

[00:02:47] I'll highlight that Google Cloud is forming a new artificial intelligence sales team, led by veteran Brian Goldstein, to increase engagement with AI customers, including notable firms like Anthropic and Cohere. This shift commons alongside the disbanding of a sales division serving the central US and the elimination of approximately 60 jobs. LinkedIn introduced new artificial intelligence tools aimed at assisting job seekers and recruiters.

[00:03:14] The platform's new Jobs Match tool will advise its 1 billion users on job applications, while a recruitment AI agent will support small businesses in managing their hiring processes. The tools are free to use, marking a shift from LinkedIn's previous focus on premium offerings. Currently, job applications on LinkedIn are submitted at a rate of $9,000 per minute, but the job-seeking experience can be overwhelming, with many openings receiving hundreds or even thousands of applications.

[00:03:43] Rohan Rajiv, a director of product management, noted that there has been a 40% increase in users activating the Open to Work feature, now totaling $5 million. Despite the platform's extensive user base, only 67 million users are actively looking for jobs each week, highlighting the challenges faced in recruitment. The company aims to ease the application process and enhance the matching of candidates with suitable job opportunities. Why do we care?

[00:04:11] It's interesting that it all happened at the same time. Two reasons to care. First, your customers may not have this feature when they didn't have it before. Second, it's clear the sales strategy is changing. I'd posit that adoption numbers are far lower than they'd hoped, and this has been backed by previous reporting, and thus the change. This put the chat spots front and center with more subtle upsell based on usage. If you'd resisted AI, that is now significantly harder.

[00:04:39] I'll observe it popped up in my copy of Word for me today. I don't normally cover social media apps, so I found this notable. As the potential ban of TikTok in the United States looms, many former users are migrating to the Chinese social media app RedNote, which has quickly climbed to the top of the Apple App Store download charts, gaining over 700,000 new users in just a few days.

[00:05:06] In response to this shift, Duolingo reported a significant increase in the interest, noting a 216% rise in new learners of Mandarin Chinese in the U.S. compared to the previous year. The language learning platform connected this spike to TikTok's impending ban and the surge in RedNote's popularity.

[00:05:27] Duolingo's statistic highlights a growing trend among users seeking to engage with Chinese content as they adapt to the changing social media landscape. TikTok's parent company, ByteDance, faces a deadline to sell the app's U.S. assets by January 19th. Why do we care? A second-order effect of shutting down one app is that technology-savvy users are explicitly moving to another Chinese-run app. This was certainly not the outcome lawmakers intended.

[00:05:57] While I don't believe this has an explicit IT services impact, I wanted to note it due to the potential impact on the regulators' approach we might see this year. If you like some good popcorn drama, this weekend could be fascinating. And time for some big ideas. I spotted an article in Latent Space that breaks down the challenges and evolving perceptions surrounding the artificial intelligence model O1.

[00:06:25] Since its launch in October, users have had mixed reactions, with many struggling to adapt from traditional chat models to O1's unique capabilities. Notably, O1 has been rated highly across all leaderboards, leading to a surge in interest. A significant point made by users is that O1 functions more effectively as a report generator rather than a chat model.

[00:06:48] Users are encouraged to provide extensive context when prompting O1, with one user recommending that context should be ten times more detailed than initially thought. The article emphasizes that O1 excels in generating complete files and providing accurate diagnoses, while it still struggles with writing in specific voices. With a considerable number of applications exceeding 15 times the available slots for the AI Engineer Summit,

[00:07:14] the demand for AI products continues to grow, illustrating the competitive landscape of machine learning technologies. As the industry progresses, the expectations and experiences of users with AI models like O1 are expected to evolve further. In tech bullion, Adrian Britz offers a vision of managed IT services transforming from mere support to strategic partnerships that drive innovation and resilience for businesses.

[00:07:39] With the average cost of IT downtime estimated at $5,600 per minute, organizations increasingly rely on managed service providers to implement proactive approaches to IT management, including predictive analysis and predicting issues before they arise. As cyber threats become more sophisticated, these providers are also essential in enhancing cybersecurity through advanced threat detection and employee training programs.

[00:08:06] The shift to remote and hybrid work models has further emphasized the need for tailored IT solutions, particularly in ensuring secure access for employees working from various locations. Additionally, managed service providers are facilitating cloud adoption, which offers scalability and flexibility while helping organizations navigate compliance with regulations.

[00:08:26] As technology continues to advance, the future of managed IT services looks to be focused on collaboration and innovation, positioning these providers as vital allies in helping businesses thrive amidst constant change. Harvard Business Review offers a study that reveals that consumers prefer artificial intelligence tools that highlight human involvement in their development rather than those that appear overly human-like.

[00:08:51] The research suggests that showcasing the human expertise behind AI can enhance users' perception of its usefulness and promote acceptance. As AI technologies become more integrated into daily life, from virtual assistants to digital avatars, the authors emphasize that these systems are fundamentally products of human effort.

[00:09:13] The findings indicate that anthropomorphizing AI may misrepresent its true nature, thus reinforcing the importance of recognizing the human contributions that shape these technologies. The insight comes at a time when AI's capabilities are rapidly evolving, with companies like OpenAI and Character.ai leading the way in creating more engaging and lifelike user experiences.

[00:09:36] HBR also highlighted the crucial role of people in the creation of quality data, emphasizing that while many leaders understand the importance of good data, they often overlook how their teams contribute to it. Companies blame employees for issues like lack of focus and resistance to learning new skills, failing to recognize that fostering a supportive environment is essential.

[00:09:58] Thomas C. Redmond, president of Data Quality Solutions and Donna Burbank, managing director of Global Data Strategy, stress that good data is vital for efficient operations and decision-making. They argue that by empowering individuals and addressing their concerns, organizations can significantly improve data quality and enhance overall performance. Why do we care? Why do we care? Well, here are your questions to ponder here.

[00:10:23] Are you both learning how to use the models as appropriate and then providing training to your customers? How much do you align with or disagree with the vision outlined for managed services? And are you leveraging human expertise and quality data in your approach to technologies? And how can you improve? Are you ready to get your brand in front of the tech leaders shaping the future of managed services?

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[00:11:40] Thanks for listening. It's National Fig Newton Day, National Nothing Day and National Good Teen Day. So focus on those good teens, perhaps with a fig newton. The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines posted at businessof.tech. If you've enjoyed the show, make sure you've subscribed or followed on your favorite platform. It's free and helps directly.

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