California AI Bill Faces Opposition, ConnectWise Acquisitions, and AI in Sports Reporting

[00:00:02] [SPEAKER_00]: It's Thursday, September 12th, 2024, and I'm Dave Solpe with three things to know today.

[00:00:07] [SPEAKER_00]: California's AI Safety Bill SB 1047 faces industry opposition over innovation concerns,

[00:00:14] [SPEAKER_00]: as it await Governor Newsom's decision.

[00:00:17] [SPEAKER_00]: ConnectWise expands their MSP platform with acquisitions of Accient and SkyKick, strengthening

[00:00:22] [SPEAKER_00]: data protection and cloud management, and the MSP sector seeing growth with AI-driven

[00:00:27] [SPEAKER_00]: tools, enhanced security pledges, and expanding cloud marketplaces.

[00:00:32] [SPEAKER_00]: This is the Business of Tech.

[00:00:36] [SPEAKER_00]: California lawmakers have passed SB 1047, a significant AI safety bill requiring safety

[00:00:42] [SPEAKER_00]: testing and third-party audits for advanced AI systems costing over $100 million.

[00:00:47] [SPEAKER_00]: While it aims to balance innovation and safety, it faces opposition from some industry

[00:00:52] [SPEAKER_00]: leaders and academics who argue it may hinder smaller firms and academic research.

[00:00:57] [SPEAKER_00]: The bill emphasizes accountability for AI developers and raises concerns about a potential

[00:01:03] [SPEAKER_00]: chilling effect on innovation.

[00:01:05] [SPEAKER_00]: Advocates claim it's a necessary step towards ensuring safety in AI technology,

[00:01:10] [SPEAKER_00]: and Governor Gavin Newsom has not yet stated his position, and he's facing pressure

[00:01:15] [SPEAKER_00]: from the tech industry and advocates for regulation.

[00:01:18] [SPEAKER_00]: The Office of Management and Budget will soon release guidance to assist federal agencies

[00:01:23] [SPEAKER_00]: in acquiring artificial intelligence technologies following feedback from various stakeholders.

[00:01:28] [SPEAKER_00]: This memo aims to align agency contracts with best practices outlined in previous

[00:01:34] [SPEAKER_00]: OMB guidance and is expected by September 24.

[00:01:37] [SPEAKER_00]: Additionally, OMB has initiated AI training for employees involved in policy and acquisitions

[00:01:43] [SPEAKER_00]: to enhance understanding and effective use of AI in government.

[00:01:47] [SPEAKER_00]: A bipartisan bill is also being drafted to require risk assessments for AI technologies

[00:01:52] [SPEAKER_00]: before purchase and use.

[00:01:55] [SPEAKER_00]: And in Cheyenne, Wyoming, Victor Miller's campaign to elect an AI chatbot named Vic

[00:02:01] [SPEAKER_00]: as mayor ended in defeat.

[00:02:03] [SPEAKER_00]: Miller received only 327 votes against incumbent Mayor Patrick Collins, who secured

[00:02:09] [SPEAKER_00]: 6,286 votes.

[00:02:11] [SPEAKER_00]: Miller described his campaign as historic and aimed to promote AI governance through

[00:02:16] [SPEAKER_00]: a new organization, the Rational Governance Alliance, advocating for AI decision-making

[00:02:21] [SPEAKER_00]: in public office.

[00:02:23] [SPEAKER_00]: Despite the loss, Miller remains committed to advancing the role of AI in governance,

[00:02:27] [SPEAKER_00]: arguing that it could lead to more efficient and unbiased decision-making.

[00:02:32] [SPEAKER_00]: ESPN has begun publishing AI-generated sports recaps for women's soccer and plans

[00:02:38] [SPEAKER_00]: to expand to other sports, claiming this will allow human writers to focus on more

[00:02:42] [SPEAKER_00]: in-depth reporting.

[00:02:43] [SPEAKER_00]: However, the initial recaps lack nuance and have missed significant moments, raising

[00:02:49] [SPEAKER_00]: concerns about the quality of AI-generated content.

[00:02:52] [SPEAKER_00]: One of the National Women's Soccer League stories failed to mention the significance

[00:02:56] [SPEAKER_00]: of one player's final game and the emotional moments that happened, something ESPN waved

[00:03:01] [SPEAKER_00]: at with a later update to the story.

[00:03:05] [SPEAKER_00]: Why do we care?

[00:03:06] [SPEAKER_00]: I'm starting with the legislation because it's been sitting on the governor's desk

[00:03:09] [SPEAKER_00]: for a while.

[00:03:10] [SPEAKER_00]: This bill passed on August 29th, then you'll note it's September 12th and we have no

[00:03:15] [SPEAKER_00]: updates.

[00:03:16] [SPEAKER_00]: He has until later this month to decide.

[00:03:19] [SPEAKER_00]: I'd held off initially until it passed, but I think the delay is part of the story

[00:03:24] [SPEAKER_00]: now and why we care.

[00:03:26] [SPEAKER_00]: Beyond that, there's some fundamental mismatch in use cases here.

[00:03:29] [SPEAKER_00]: The public has spoken in Wyoming, no thank you to having a chatbot run the city.

[00:03:34] [SPEAKER_00]: This should be obvious, use cases fail without a human in the loop.

[00:03:39] [SPEAKER_00]: See the ESPN story.

[00:03:40] [SPEAKER_00]: There's a subtlety to stories that can be critically missed.

[00:03:44] [SPEAKER_00]: The key is quality.

[00:03:46] [SPEAKER_00]: AI is an option if your goal is to provide something versus nothing.

[00:03:50] [SPEAKER_00]: If you want to deliver quality, AI alone probably isn't it.

[00:03:56] [SPEAKER_00]: Thread has declared death to the ticket.

[00:03:58] [SPEAKER_00]: Did you know tickets date back to the 1800s?

[00:04:02] [SPEAKER_00]: And customers hate tickets.

[00:04:04] [SPEAKER_00]: Thread uses an approach for connecting, communicating and ultimately collaborating.

[00:04:09] [SPEAKER_00]: Thread allows people to come together around a topic.

[00:04:13] [SPEAKER_00]: They can discuss and make decisions.

[00:04:15] [SPEAKER_00]: They can share and invite the right people.

[00:04:17] [SPEAKER_00]: The future of service is collaborative.

[00:04:20] [SPEAKER_00]: Supercharge your service experience by seamlessly integrating AI and automation to meet your

[00:04:25] [SPEAKER_00]: customers where they are, in teams, Slack and desktops, not in tickets.

[00:04:31] [SPEAKER_00]: With instant updates to and from ConnectWise, AutoTask and Halo PSA, keep all communication

[00:04:37] [SPEAKER_00]: in one place, where it should be, with people.

[00:04:40] [SPEAKER_00]: Decrease time to resolution 30% with chat-based support by visiting getthread.com

[00:04:47] [SPEAKER_00]: slash MSPradio to declare death to the ticket.

[00:04:53] [SPEAKER_00]: ConnectWise has acquired Axient and SkyKick to enhance data protection and business continuity

[00:04:59] [SPEAKER_00]: solutions for managed services providers.

[00:05:01] [SPEAKER_00]: The integration will focus on maintaining customer experience, minimizing disruption

[00:05:05] [SPEAKER_00]: and fostering innovation, ultimately contributing to the development of a comprehensive MSP

[00:05:10] [SPEAKER_00]: platform, ConnectWise OZIO, which will combine various services including professional

[00:05:15] [SPEAKER_00]: services automation, remote monitoring and management and cybersecurity solutions.

[00:05:18] [SPEAKER_00]: K1 Investment Management announced the acquisition of its portfolio company Axient as well, which

[00:05:24] [SPEAKER_00]: gives us some details.

[00:05:25] [SPEAKER_00]: Under K1's investment, Axient's annual recurring revenue grew by 7.5 times.

[00:05:31] [SPEAKER_00]: K1 has realized over $1.8 billion in liquidity in the past 10 months, reflecting successful

[00:05:38] [SPEAKER_00]: investment strategies in the enterprise software space.

[00:05:41] [SPEAKER_00]: And SkyKick coverage gives a little perspective too.

[00:05:43] [SPEAKER_00]: SkyKick, which focuses on helping IT service providers manage cloud infrastructure for

[00:05:48] [SPEAKER_00]: SMBs, will see its 142 employees join ConnectWise.

[00:05:53] [SPEAKER_00]: The acquisition follows SkyKick's earlier layoffs of 140 employees.

[00:05:59] [SPEAKER_00]: Why do we care?

[00:06:01] [SPEAKER_00]: I'd previously covered the Axient acquisition when it was a reported rumor from a credible

[00:06:05] [SPEAKER_00]: journalist.

[00:06:06] [SPEAKER_00]: The SkyKick news is new and frankly I think it's a little more interesting, considering

[00:06:10] [SPEAKER_00]: its cloud management component.

[00:06:12] [SPEAKER_00]: With the additional sourcing, we get a bit more of a picture of the acquisition.

[00:06:17] [SPEAKER_00]: Axient had been growing rapidly and SkyKick is 142 people and had done previous layoffs.

[00:06:23] [SPEAKER_00]: I think SkyKick's acquisition probably includes development expertise to help with

[00:06:27] [SPEAKER_00]: OZIO.

[00:06:28] [SPEAKER_00]: And remember, without financial terms, assume they were acquired for a six pack

[00:06:33] [SPEAKER_00]: of beer.

[00:06:34] [SPEAKER_00]: Don't inflate exits without data.

[00:06:39] [SPEAKER_00]: Got a couple of more product-related items for you too as well.

[00:06:43] [SPEAKER_00]: SecureFrame has launched a free GAP assessment tool to assist service partners in identifying

[00:06:49] [SPEAKER_00]: security and compliance gaps, enhancing their service offerings and driving business

[00:06:52] [SPEAKER_00]: growth.

[00:06:53] [SPEAKER_00]: The tool streamlines the assessment process, improves sales interactions and allows partners

[00:06:58] [SPEAKER_00]: to demonstrate value without financial barriers.

[00:07:01] [SPEAKER_00]: And Movilla has launched Smart Schedule, a supervised autonomous scheduling feature

[00:07:05] [SPEAKER_00]: designed for managed services providers to enhance project management efficiency.

[00:07:10] [SPEAKER_00]: The innovation and feature addresses challenges such as data inaccuracy and scheduling chaos,

[00:07:15] [SPEAKER_00]: allowing MSPs to save 20-50% of the time in managing schedules while improving project

[00:07:21] [SPEAKER_00]: outcomes and client satisfaction.

[00:07:23] [SPEAKER_00]: Smart Schedule automates task alignment and ensures accurate project data, allowing

[00:07:28] [SPEAKER_00]: providers to focus on delivering exceptional service.

[00:07:31] [SPEAKER_00]: The feature is now available on Movilla's perfect project platform and integrates with

[00:07:36] [SPEAKER_00]: major PSA systems.

[00:07:39] [SPEAKER_00]: InfiniGate Cloud has partnered with Enable to launch a new marketplace for managed

[00:07:43] [SPEAKER_00]: services providers in the UK, Ireland and additional European countries.

[00:07:48] [SPEAKER_00]: This marketplace will offer Enable's cloud-based solutions for remote monitoring, data protection

[00:07:53] [SPEAKER_00]: and security, providing providers with a self-service experience.

[00:07:58] [SPEAKER_00]: The initial offerings include N-Site and Cove data protection, with more products to

[00:08:03] [SPEAKER_00]: be added by the end of the year.

[00:08:05] [SPEAKER_00]: And Google's Notebook LM now features an AI-generated podcast capability that transforms

[00:08:12] [SPEAKER_00]: research notes into discussions between two AI hosts.

[00:08:16] [SPEAKER_00]: This experimental feature summarizes material, connects topics and engages in light banter,

[00:08:22] [SPEAKER_00]: making research more engaging.

[00:08:23] [SPEAKER_00]: However, it may not provide a comprehensive view and has limitations, including generation

[00:08:29] [SPEAKER_00]: time and accuracy, and is currently only available in English.

[00:08:33] [SPEAKER_00]: Google Cloud is introducing a new Backup Vault feature to enhance protection against

[00:08:38] [SPEAKER_00]: ransomware by isolating backups from accessible company networks.

[00:08:42] [SPEAKER_00]: This feature allows administrators to lock backups, preventing deletion or shortening

[00:08:47] [SPEAKER_00]: of their lifespan.

[00:08:48] [SPEAKER_00]: It can be stored separately from the main project to ensure access even if the

[00:08:53] [SPEAKER_00]: project is compromised.

[00:08:55] [SPEAKER_00]: And Compliance Scorecard has committed to the CISA Secure by Design Pledge, enhancing

[00:08:59] [SPEAKER_00]: security for managed services providers and SMBs.

[00:09:02] [SPEAKER_00]: This pledge involves adhering to seven key objectives aimed at improving software security,

[00:09:08] [SPEAKER_00]: including multi-factor authentication and vulnerability management.

[00:09:12] [SPEAKER_00]: Why do we care?

[00:09:13] [SPEAKER_00]: Well, kudos to Compliance Scorecard.

[00:09:15] [SPEAKER_00]: More MSV vendors need to sign that pledge, and it's still notable how many have not.

[00:09:21] [SPEAKER_00]: The idea of locked backups is becoming more mainstream, and I wanted to highlight it

[00:09:25] [SPEAKER_00]: here from Google.

[00:09:26] [SPEAKER_00]: Again, it feels like it's becoming table stakes.

[00:09:29] [SPEAKER_00]: AI features like Notebook LM demonstrate Google's push to make more AI functional

[00:09:34] [SPEAKER_00]: for everyday users, transforming research into interactive discussions.

[00:09:39] [SPEAKER_00]: For providers, this could change how MSPs engage with content and provide information

[00:09:44] [SPEAKER_00]: to clients.

[00:09:45] [SPEAKER_00]: A new EU-focused marketplace for MSPs, huh?

[00:09:49] [SPEAKER_00]: Well, watch for how Enable's offering scale and interact with the existing tools MSPs

[00:09:54] [SPEAKER_00]: are using, and if InfiniGate opens this up for more platforms or more geographies.

[00:09:59] [SPEAKER_00]: Disclosure, I'm an Enable shareholder.

[00:10:02] [SPEAKER_00]: I included the Secure Frame and Muvilla information to update you.

[00:10:08] [SPEAKER_00]: Today's episode is supported by Huntress.

[00:10:11] [SPEAKER_00]: You want to focus on your clients and are always looking for ways to get more time.

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[00:10:34] [SPEAKER_00]: with an average CSAT score of 99.3%.

[00:10:39] [SPEAKER_00]: Technology can only get you so far.

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[00:10:54] [SPEAKER_00]: Visit Huntress.com slash MSP radio to find out more.

[00:11:00] [SPEAKER_00]: Thanks for listening!

[00:11:01] [SPEAKER_00]: Today is National Video Game Day, which is one I distinctly have to celebrate with

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