AI Trust, Security Failures, Zoom Docs, Microsoft Changes, OpenAI Chaos

[00:00:02] [SPEAKER_00]: It's Tuesday, August 13th, 2024 and I'm Dave Solt.

[00:00:06] [SPEAKER_00]: Four things to know today.

[00:00:08] [SPEAKER_00]: A study shows that AI terminology hurts consumer trust as marketers should shift their focus

[00:00:14] [SPEAKER_00]: to product benefits.

[00:00:16] [SPEAKER_00]: Security at the forefront, CrowdStrike's epic fail acknowledgment and Microsoft's

[00:00:20] [SPEAKER_00]: Nuke or mandate.

[00:00:22] [SPEAKER_00]: Zoom enters the productivity arena with AI-powered Docs tool as Microsoft retires the Action

[00:00:28] [SPEAKER_00]: Pack and AI security takes center stage at DEF CON amid OpenAI's regulatory move and

[00:00:35] [SPEAKER_00]: leadership exodus.

[00:00:37] [SPEAKER_00]: This is the Business of Tech.

[00:00:41] [SPEAKER_00]: A study from Washington State University finds that using artificial intelligence in product

[00:00:46] [SPEAKER_00]: descriptions can decrease purchase intentions due to reduced emotional trust among consumers.

[00:00:53] [SPEAKER_00]: This effect is more pronounced for high-risk products like electronics and medical devices.

[00:00:59] [SPEAKER_00]: Marketers should focus on product features and benefits rather than AI terminology to

[00:01:04] [SPEAKER_00]: enhance consumer trust and sales.

[00:01:06] [SPEAKER_00]: A Google Cloud survey reveals that 74% of companies using generative AI saw a return

[00:01:12] [SPEAKER_00]: on investment within a year, with 86% reporting revenue increases.

[00:01:17] [SPEAKER_00]: However, there is a disconnect between executives and employees regarding productivity gains

[00:01:23] [SPEAKER_00]: as 81% of executives expect increased output while 65% of employees do not see this reflected

[00:01:30] [SPEAKER_00]: in their work.

[00:01:31] [SPEAKER_00]: Companies should involve employees in AI strategy and provide training to bridge the gap.

[00:01:37] [SPEAKER_00]: And some use cases?

[00:01:38] [SPEAKER_00]: I've got two for you.

[00:01:40] [SPEAKER_00]: Wendy's is introducing an AI-powered bilingual drive-thru in 28 Florida and Ohio locations

[00:01:47] [SPEAKER_00]: catering to high Spanish-speaking populations.

[00:01:51] [SPEAKER_00]: Customers can switch to Spanish by saying Spanish or Español when ordering.

[00:01:56] [SPEAKER_00]: A generative AI tool has been successfully deployed aboard the International Space Station,

[00:02:02] [SPEAKER_00]: marking the first documented use of such technology in space.

[00:02:06] [SPEAKER_00]: Developed by Booz Allen Hamilton, the large-language model was uploaded to the space-born computer

[00:02:12] [SPEAKER_00]: 2 and is designed to enhance data processing and problem-solving capabilities in space.

[00:02:18] [SPEAKER_00]: The tool aims to assist astronauts in retrieving and interpreting information without relying

[00:02:24] [SPEAKER_00]: on Earth-based internet, thus advancing mission-critical solutions in a constrained environment.

[00:02:30] [SPEAKER_00]: Why do we care?

[00:02:32] [SPEAKER_00]: Customers are not buying AI.

[00:02:34] [SPEAKER_00]: One doesn't sell AI.

[00:02:37] [SPEAKER_00]: Instead, you sell business outcomes and you may use technologies like AI or products that

[00:02:42] [SPEAKER_00]: have AI built in.

[00:02:44] [SPEAKER_00]: Need better access to information or real-time translations?

[00:02:47] [SPEAKER_00]: Those are business needs that are solved by technology.

[00:02:50] [SPEAKER_00]: And investing in employees will deliver those outcomes.

[00:02:55] [SPEAKER_00]: Today's episode is supported by Huntress.

[00:02:58] [SPEAKER_00]: You want to focus on your clients and are always looking for ways to get more time.

[00:03:04] [SPEAKER_00]: Use Huntress' fully managed cybersecurity platform to fight off cyber threats.

[00:03:09] [SPEAKER_00]: Huntress is more than cybersecurity software for endpoints and identities.

[00:03:14] [SPEAKER_00]: It's a 24x7 security operations center.

[00:03:17] [SPEAKER_00]: It's security awareness training, community engagement, and dedicated partner support

[00:03:21] [SPEAKER_00]: with an average CSAT score of 99.3%.

[00:03:25] [SPEAKER_00]: Technology can only get you so far.

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[00:03:34] [SPEAKER_00]: And you get that with Huntress.

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[00:03:41] [SPEAKER_00]: Visit huntress.com slash MSPradio to find out more.

[00:03:48] [SPEAKER_00]: I feel like we'll be talking about CrowdStrike for a while longer.

[00:03:53] [SPEAKER_00]: CrowdStrike has engaged two external security firms to review its Falcon Threat Detection

[00:03:57] [SPEAKER_00]: Suite following that global IT outage caused by a flawed update.

[00:04:02] [SPEAKER_00]: The root cause was identified as a mismatch in input parameters during the deployment of

[00:04:08] [SPEAKER_00]: new detection capabilities, which led to the system crash.

[00:04:12] [SPEAKER_00]: CrowdStrike has since updated its content compiler to ensure correct parameter counts

[00:04:17] [SPEAKER_00]: and added runtime bounds checking to prevent further issues.

[00:04:21] [SPEAKER_00]: CrowdStrike attempted to restore its reputation at the Black Hat Cybersecurity Conference by

[00:04:26] [SPEAKER_00]: distributing action figures and T-shirts while expressing gratitude to attendees.

[00:04:31] [SPEAKER_00]: Despite the disruption affecting millions and prompting mixed reactions from cybersecurity

[00:04:35] [SPEAKER_00]: professionals, many attendees supported the company, citing its effective remediation

[00:04:41] [SPEAKER_00]: efforts.

[00:04:43] [SPEAKER_00]: CrowdStrike accepted the Most Epic Fail award at the DEF CON Hacking Show for that outage,

[00:04:48] [SPEAKER_00]: and President Michael Santonis emphasized the importance of owning one's mistakes and

[00:04:53] [SPEAKER_00]: plans to display the award at the company's headquarters.

[00:04:56] [SPEAKER_00]: At Related, Microsoft responded to Delta Airlines' claims regarding the massive IT outage that

[00:05:02] [SPEAKER_00]: led to thousands of flight cancellations, accusing Delta of not modernizing its technology.

[00:05:08] [SPEAKER_00]: Delta's CEO stated the airline is seeking damages from Microsoft and CrowdStrike for

[00:05:13] [SPEAKER_00]: the disruptions, which reportedly cost around $500 million.

[00:05:17] [SPEAKER_00]: Microsoft offered assistance during the outage, but Delta declined help, citing reliance on

[00:05:23] [SPEAKER_00]: other technology providers.

[00:05:25] [SPEAKER_00]: CrowdStrike responded as well, emphasizing disappointment over Delta's claims of gross

[00:05:30] [SPEAKER_00]: negligence related to the IT outage, asserting that it acted swiftly to assist Delta.

[00:05:36] [SPEAKER_00]: CrowdStrike's legal counsel emphasized that Delta would need to justify its delayed recovery

[00:05:41] [SPEAKER_00]: compared to competitors and its refusal of offered support.

[00:05:45] [SPEAKER_00]: And at the same time, Microsoft has mandated that all employees prioritize security as

[00:05:51] [SPEAKER_00]: a core value, emphasizing its importance in protecting customers from cyber threats.

[00:05:56] [SPEAKER_00]: A new security core priority will be integrated into employee evaluations, holding everyone

[00:06:02] [SPEAKER_00]: accountable for security measures.

[00:06:04] [SPEAKER_00]: This initiative aims to foster a security-first mindset across the company, impacting career

[00:06:10] [SPEAKER_00]: progression and rewards as Microsoft seeks to enhance its defenses against sophisticated

[00:06:15] [SPEAKER_00]: cyber attacks.

[00:06:17] [SPEAKER_00]: Now why do we care?

[00:06:19] [SPEAKER_00]: CrowdStrike is doing the user repentance tour.

[00:06:22] [SPEAKER_00]: Owning your mistakes and showing course corrections are good.

[00:06:26] [SPEAKER_00]: I'm a bit less sure about t-shirts and action figures, and would rather see some financial

[00:06:31] [SPEAKER_00]: responsibility for mistakes, but that's just me.

[00:06:34] [SPEAKER_00]: And Delta too, although if Delta turned down help, that doesn't look good, and if they

[00:06:39] [SPEAKER_00]: have outdated systems themselves, they stand some responsibility.

[00:06:43] [SPEAKER_00]: I'll look forward to learning more as the cases progress.

[00:06:49] [SPEAKER_00]: Zoom has launched Zoom Docs, an AI-powered document creation tool integrated into its

[00:06:54] [SPEAKER_00]: Workplace app.

[00:06:56] [SPEAKER_00]: It allows users to create and manage meeting-related information.

[00:06:59] [SPEAKER_00]: It supports various content types and enables real-time co-editing for up to 100 users during

[00:07:05] [SPEAKER_00]: video meetings.

[00:07:07] [SPEAKER_00]: The AI companion assists in drafting documents and summarizing meeting transcripts with templates

[00:07:12] [SPEAKER_00]: available for different document formats.

[00:07:15] [SPEAKER_00]: Zoom Docs is free for paid Workplace customers, while free users can create limited shared

[00:07:21] [SPEAKER_00]: documents without AI companion access.

[00:07:24] [SPEAKER_00]: Huntress has launched a new managed SIEM offering designed for MSPs and small businesses to provide

[00:07:30] [SPEAKER_00]: a simpler and more affordable alternative to traditional SIEM platforms.

[00:07:35] [SPEAKER_00]: This offering enhanced security outcomes by using efficient data collection methods, making

[00:07:39] [SPEAKER_00]: it accessible for MSPs with limited staffing.

[00:07:42] [SPEAKER_00]: Users have praised its intuitive interface and ease of use, which have significantly improved

[00:07:47] [SPEAKER_00]: over previous SIEM systems.

[00:07:50] [SPEAKER_00]: The launch follows a $150 million fundraising effort to expand Huntress' product offerings.

[00:07:56] [SPEAKER_00]: And Microsoft will discontinue its Action Pack and Legacy Silver and Gold benefits starting

[00:08:02] [SPEAKER_00]: January 22, 2025, shifting focus to new partner benefits packages that include licenses for

[00:08:08] [SPEAKER_00]: co-pilot products and Defender for Endpoint.

[00:08:12] [SPEAKER_00]: Partners can use existing legacy benefits for 12 months after purchase or renewal, but

[00:08:17] [SPEAKER_00]: the changes have raised concerns among smaller partners about support and accessibility.

[00:08:24] [SPEAKER_00]: Why do we care?

[00:08:25] [SPEAKER_00]: Zoom taking on Microsoft Office and Google Workspace feels like a big deal.

[00:08:31] [SPEAKER_00]: Now I'm skeptical of adoption.

[00:08:33] [SPEAKER_00]: That said, competition is good, and I'll trust the team there has a strategy to differentiate

[00:08:38] [SPEAKER_00]: and it'll be interesting to watch.

[00:08:41] [SPEAKER_00]: And let's pour one out for the Action Pack.

[00:08:43] [SPEAKER_00]: This was a game-changer for me and my MSP in the early days.

[00:08:47] [SPEAKER_00]: Microsoft tends to be a bit cyclical, pulling away from smaller partners, pushing into them,

[00:08:53] [SPEAKER_00]: pulling away, rinse repeat.

[00:08:55] [SPEAKER_00]: Listeners, give me some feedback here.

[00:08:58] [SPEAKER_00]: Is this a big deal or not?

[00:09:02] [SPEAKER_00]: And speaking of DEF CON, AI security researchers are exploring new methods for reporting flaws

[00:09:09] [SPEAKER_00]: in AI models at the DEF CON conference in Las Vegas.

[00:09:13] [SPEAKER_00]: Current practices lack standardization, making it difficult for companies to receive and

[00:09:18] [SPEAKER_00]: address findings from ethical hackers.

[00:09:21] [SPEAKER_00]: The AI Village is collaborating with the Allen Institute for AI to test an open-source model

[00:09:27] [SPEAKER_00]: and refine the reporting process for security bugs, aiming to improve how vulnerabilities

[00:09:32] [SPEAKER_00]: are disclosed and handled in AI systems.

[00:09:36] [SPEAKER_00]: OpenAI has pledged to provide the U.S. AI Safety Institute early access to its next generative

[00:09:43] [SPEAKER_00]: AI model for safety testing, aiming to address concerns about its commitment to AI safety.

[00:09:49] [SPEAKER_00]: This follows criticism over the disbandment of a safety team and the company's recent

[00:09:53] [SPEAKER_00]: moves to eliminate non-disparagement clauses and create a safety commission.

[00:09:58] [SPEAKER_00]: The agreement coincides with OpenAI's endorsement of a Senate bill that would establish the Safety

[00:10:03] [SPEAKER_00]: Institute, raising concerns about potential regulatory influence.

[00:10:08] [SPEAKER_00]: And speaking of OpenAI, the company has experienced significant leadership changes, with President

[00:10:13] [SPEAKER_00]: Greg Brockman taking a leave of absence, Vice President Peter Deng leaving, and co-founder

[00:10:19] [SPEAKER_00]: John Shulman joining rival Anthropic.

[00:10:23] [SPEAKER_00]: These departures follow a trend of top-level exits at OpenAI, leaving only three of the

[00:10:29] [SPEAKER_00]: original 11 founders with the company.

[00:10:33] [SPEAKER_00]: Shulman cited a desire to focus on AI alignment as his reason for leaving, while Brockman

[00:10:39] [SPEAKER_00]: expressed the need for a sabbatical after nine years with OpenAI.

[00:10:44] [SPEAKER_00]: A survey of 300 American tech workers reveals strong support for AI regulation, with 75%

[00:10:50] [SPEAKER_00]: advocating for federal and state oversight to address privacy, security, and ethical

[00:10:56] [SPEAKER_00]: concerns.

[00:10:57] [SPEAKER_00]: The survey highlights the need for updated copyright laws to protect content creators

[00:11:01] [SPEAKER_00]: from data misuse by AI companies.

[00:11:04] [SPEAKER_00]: While the U.S. has some regulatory efforts, such as an executive order from President

[00:11:08] [SPEAKER_00]: Biden, comprehensive frameworks like the EU's AI Act are still in development.

[00:11:14] [SPEAKER_00]: Despite regulatory gaps, 88% of respondents trust their employers to use AI responsibly.

[00:11:22] [SPEAKER_00]: Why do we care?

[00:11:24] [SPEAKER_00]: Regulation is more popular than one might think, and OpenAI recognizes that.

[00:11:28] [SPEAKER_00]: That said, there's been a lot of chaos there, and I wanted to highlight it.

[00:11:32] [SPEAKER_00]: This is a pretty turbulent space, as typical for areas with a flood of interest.

[00:11:36] [SPEAKER_00]: Are we coming through the trough of disillusionment?

[00:11:39] [SPEAKER_00]: It sure feels like it.

[00:11:42] [SPEAKER_00]: Savvy providers are monitoring the fray and helping customers with their preparations,

[00:11:47] [SPEAKER_00]: working to keep them insulated from any volatility.

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[00:12:33] [SPEAKER_00]: I'm looking forward to that discussion.

[00:12:37] [SPEAKER_00]: It's National Filet Mignon Day and National Prosecco Day, so your dinner is sorted.

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[00:12:47] [SPEAKER_00]: Question at mspradio.com.

[00:12:49] [SPEAKER_00]: I answer listener questions live each week, this week, Thursday on the live show,

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[00:13:05] [SPEAKER_00]: If you're listening to the podcast, I'll talk to you again tomorrow.

[00:13:10] [SPEAKER_00]: The Business of Tech is written and produced by me,

[00:13:13] [SPEAKER_00]: Dave Sobel, under ethics guidelines posted at businessof.tech.

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[00:13:47] [SPEAKER_00]: Once again, thanks for listening to me.

[00:13:50] [SPEAKER_00]: I'll talk to you again on our next episode of the Business of Tech.