Consulting Firms Thrive with Generative AI, Windows on ARM Updates, & IT Leadership Diversity Report

[00:00:00] It's Thursday, June 27th, 2024, and I'm Dave Sobel. Three things to know today. Consulting firms thrive as demand for generative AI expertise soars, Windows on ARM, the native app support is expanding, but gaming and device issues persist, and the IT Leadership Diversity Report reveals persistent gender and racial gaps.

[00:00:25] This is the Business of Tech. Consulting firms like Boston Consulting Group, McKinsey & Company, IBM, and Accenture are benefiting from the AI boom as companies seek their expertise in understanding and implementing generative AI technologies. According to the New York Times, these firms are experiencing significant growth in sales

[00:00:46] and hiring, with a focus on helping businesses navigate the implications and potential of generative AI. While the tech industry searches for ways to monetize generative AI, consulting firms are cashing in on the demand for their services. NBCUniversal and Peacock will use artificial intelligence to generate daily highlight reels

[00:01:07] for the summer games, featuring the AI-generated narration of Al Michaels. The customized highlight reel will be available to streaming subscribers, and Peacock's program has been trained to formulate coherent sentences using Michael's voice from his NBC clips.

[00:01:25] Subscribers can choose the Olympic events and types of highlights they want to see, and the AI machines will create a customized package. NBCUniversal officials anticipate 7 million different variations of customized highlights throughout the games. The Wall Street Journal looks at how freelancers in various fields are experiencing the impact

[00:01:45] of AI, particularly generative AI models like ChatGPT, on their livelihoods. Studies and data from freelance job boards indicate a decline in freelance jobs that can be automated by AI. Basic writing, coding, and translation tasks are being replaced, putting the income and job security of freelancers at risk.

[00:02:04] However, there are also freelancers who benefit from AI, such as those in data science and IT. The use of generative AI content is not always successful, as it often lacks quality and fails to convince clients.

[00:02:18] While AI-generated content may rank in search results, it's seen as dull and inferior to human-written content. This could have gone in Friday Big Ideas. Runtime warns, don't let generative AI hollow out your workforce. Using generative AI to automate entry-level jobs could have far-reaching effects on how

[00:02:39] businesses hire, train, and promote junior staff members. While automation has its benefits, senior leaders need to be cautious about cannibalizing their future workforce and ensure that generative AI services are adopted in ways that still allow people to acquire the skills they need to thrive.

[00:02:56] Slowing the pace of generative AI adoption may be necessary to achieve it. Why do we care? Of course the consulting firms are making money on AI. Customers need advice. That's why I keep talking about AI.

[00:03:11] While tech companies are still exploring how to effectively monetize generative AI and products, consulting firms are already capitalizing on the immediate demand for expertise. This positions consulting as critical intermediaries in the AI value chain. And frankly, any IT service provider should be providing that advice. Offer advice!

[00:03:31] I want to talk about the value of humans though. Consider this. The power of the AI-generated Al Michaels is because of his reputation that was built by years of effort and trust building. It makes sense to me that it could be leveraged for delivering hyper-specific sports content.

[00:03:50] But there are two risks. First, over time, trust will degrade when the voice is no longer Al Michaels himself. Second, new audience who have not built the trust with Al Michaels the human will not have any trust of Al Michaels the AI.

[00:04:06] Thus, in both cases, trust building will be required with humans over time to enable that there are new pools to pull from. Savvy businesses will balance long term with short, which is why warnings of cannibalizing the future workforce should be heeded. Today's episode is supported by Huntress.

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[00:05:07] Secure your clients and help them thrive with the number one rated EDR for SMBs on G2. Visit huntress.com slash MSP radio to find out more. Some reviews are in for the new Windows on Arm experience. I want to highlight the Verge's look at apps.

[00:05:25] The Windows on Arm experience is significantly improved with native versions of popular apps like Photoshop, Dropbox and Zoom now available. Microsoft's Prism emulator offers better performance for emulated apps, but heavyweight apps like Adobe Premiere Pro and Blender still struggle.

[00:05:43] Gaming on Snapdragon X Elite and X Plus processors is disappointing due to compatibility issues with anti-cheat services. There are also some compatibility issues with external devices and VPN apps. However, app compatibility on Windows on Arm is improving rapidly with more ARM64 native apps expected in the future.

[00:06:06] Why do we care? Real-world performance of these new machines will be important for businesses, but particularly in SMB, I expect we'll see the opportunity for more rapid adoption. The rapid pace of improvement in app compatibility suggests a promising future for Windows on Arm.

[00:06:25] Each quarter, this podcast releases our research data on the makeup of IT leadership, broken down by race and sex. By surveying public websites, we're looking to track the changes over time. This quarter, we surveyed 300 companies and 4,341 humans. 47% vendors, 48% technology providers.

[00:06:46] This quarter, we found that 89.6% are white and 3.6% are black. The breakdown is also 78% male. This is nearly identical to last quarter, although roughly 0.2% more black. The data remains similar between vendors and tech providers, and while last quarter was slightly different, this quarter nearly the same.

[00:07:05] When we look at publicly traded, or Fortune 100 companies, the numbers do improve for women, remaining at 26%. The racial divide remains within 2%. The data is relatively stable, although when looking at the racial divide over time, there's some small improvement for blacks and steady decline overall for non-white.

[00:07:26] We've also taken a step backwards in the male-female ratio. The Washington Post provided some context for why we do care. Despite conservative attacks and legal challenges, a poll by the Washington Post and Ipsos reveals that about 6 in 10 Americans approve of diversity, equity, and inclusion programs in companies.

[00:07:47] Support is higher for specific programs like internships for underrepresented groups and anti-bias trainings. However, opinions differ among racial groups, and financial incentives for managers who achieve diversity roles are universally unpopular. And I wanted to highlight an Axios piece about the backlash.

[00:08:07] Programs are being scaled back due to attacks from lawmakers, high-profile individuals, and conservative activists. Some companies are cutting funding, reducing DEI staff, and changing programs due to lawsuits and concerns about litigation. While there are still companies committed to diversity and inclusion, they may be less

[00:08:25] likely to use the DEI initials and instead focus on fostering inclusive workspaces and treating people fairly. Why do we care? The poll highlights the disparity between public support for the programs and their status as a political target.

[00:08:41] As companies reassess their policies, an approach is to DEI to mitigate legal risk. You don't want to break the law. Start there. But the core premise and why we care. When organizations look like they're communities, it's easier to engage and drive business.

[00:08:56] The IT sector's leadership skews differently from the overall population. There is a business advantage in inclusive and equitable workspaces that reflect the values and expectations of a diverse society. Companies with strong cultures outperform, so foster a culture of inclusion through continuous engagement and feedback from employees.

[00:09:17] Focus less on the names of the programs and more on the results, and widen your talent pool. Companies should focus on embedding diversity and inclusion into their core values and everyday practices rather than relying on high-profile DEI branding. That's why we care.

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[00:10:33] It's National Work From Home Day and National Sunglasses Day. But do you wear sunglasses in your work from home office? I don't think so. But it's also Micro, Small, and Medium-sized Enterprise Day, which we most certainly celebrate on this show. Got a comment on a thorough story?

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