OpenAI Faces Investigation Over Privacy, Level Blue Launches as AT&T's Spinoff, NSITSP Introduces Badge System

[00:00:02] It's Tuesday, May 7th, 2024, and I'm Dave Sobel.

[00:00:05] Four things to know today.

[00:00:07] OpenAI faces an investigation request by Austrian authority over alleged privacy breaches.

[00:00:13] Expanding AI's reach, OpenAI and Anthropic enhance features for broader applications.

[00:00:19] Level Blue launches its AT&T's spinoff aiming to redefine managed cybersecurity and the

[00:00:26] NSITSP's badge system to recognize contributions across leadership and client endorsements.

[00:00:33] This is the Business of Tech.

[00:00:37] With as many breaches and security concerns as I report on this show, it should be obvious

[00:00:41] that cybersecurity is not just about technology, but also the human expertise needed to interpret

[00:00:47] and respond to complex threats.

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[00:01:03] dedicated to continuous monitoring, expert investigation, and rapid response.

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[00:01:10] Huntress is the number one rated EDR for SMBs on G2.

[00:01:16] Want to know more about the platform?

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[00:01:25] OpenAI is facing scrutiny in the European Union over ChatGPT's hallucinations about

[00:01:30] people.

[00:01:32] Privacy rights nonprofit group called NOYB has filed a complaint against OpenAI for

[00:01:39] its inability to correct information generated by ChatGPT about individuals, which violates

[00:01:45] the General Data Protection Regulation.

[00:01:48] OpenAI is accused of being unable to correct incorrect information, not disclosing the

[00:01:53] source of data or what data ChatGPT stores about individuals, and refusing to rectify

[00:01:58] or erase data.

[00:02:00] The complaint asks the Austrian Data Protection Authority to investigate OpenAI's data

[00:02:04] processing and order compliance with the complainant's request to access the data.

[00:02:12] Encrypt.ai has raised concerns about the safety and vulnerabilities of top large

[00:02:15] language models.

[00:02:17] Their LLM Safety Leader Board benchmarks the safety and security of those notable LLMs,

[00:02:23] highlighting issues with fine-tuning and quantization practices.

[00:02:28] Encrypt.ai aims to promote the adoption of generative AI that is safe and responsible,

[00:02:33] enabling enterprises to make informed decisions and uphold ethical and regulatory standards.

[00:02:40] Enterprises plan to spend an average of $35.5 million on IT modernization,

[00:02:45] with over one-third of the budget allocated to AI.

[00:02:48] By the end of this year, businesses will have invested an average of $20 million in

[00:02:53] AI, with $6.7 million specifically for generative AI.

[00:02:57] However, data management challenges and tech debt are hindering progress, with over

[00:03:01] half of IT decision-makers expressing concerns.

[00:03:06] And according to a survey by Gartner, while the use of AI is increasing in organizations,

[00:03:10] only 9% of the polled organizations have mature AI processes in place.

[00:03:16] The survey also found that organizations need to develop foundational AI capabilities

[00:03:20] and prioritize data to generate good business outcomes with AI.

[00:03:25] Utilizing generative AI embedded in existing applications is the top method for fulfilling

[00:03:30] generative AI use cases.

[00:03:33] Why do we care?

[00:03:34] If you ever wonder where the regulations come from, guess the AEU.

[00:03:39] I'm fascinated that an ecosystem of vendors is already appearing to advise on other

[00:03:43] tools in the AI space.

[00:03:46] In my analogy of AI models as wines and service providers as sommeliers, there are now wine

[00:03:52] rankings for sommeliers to leverage.

[00:03:55] And we care because of the two other studies.

[00:03:58] Money is flowing into AI, there's a need for data management, and most organizations

[00:04:02] – that other 91% – need help.

[00:04:05] OpenAI has made its Memory feature available to all ChatGPT Plus subscribers, allowing

[00:04:12] the chatbot to remember user-supplied insights and information to generate more contextually

[00:04:17] relevant answers.

[00:04:19] The feature saves personal facts and can be used to create responses without the need

[00:04:23] for repetitive prompts.

[00:04:25] Users can manage their memories and toggle the feature on and off in the settings.

[00:04:30] The feature is currently available to ChatGPT Plus subscribers, plans to expand to other

[00:04:34] subscription types.

[00:04:37] OpenAI has also developed a new DeepFate detector that can identify 98.8% of the

[00:04:42] images created by its generator, Dolly3.

[00:04:45] However, the tool is not designed to detect images from other popular generators.

[00:04:51] OpenAI is also working on watermarking AI-generated sounds and joining the Coalition

[00:04:56] for Content Provenance and Authenticity to develop credentials for digital content.

[00:05:02] Anthropic is launching a new paid plan called TEAM aimed at enterprises, along with

[00:05:08] a new iOS app.

[00:05:09] The TEAM plan provides higher priority access to Anthropic's generative AI models and

[00:05:15] additional admin and user management controls.

[00:05:18] It offers a larger context window and collaboration features.

[00:05:22] Anthropic aims to capture significant enterprise market share as more companies move from

[00:05:27] AI experimentation to full-scale deployment.

[00:05:30] The iOS app also provides access to its AI assistant, Cloud3, with real-time image

[00:05:36] analysis capabilities.

[00:05:38] Microsoft has decided to pause the rollout of new co-pilot features in Windows 11

[00:05:43] to refine them based on user feedback.

[00:05:46] The co-pilot in Windows will continue to work as expected while new ideas are being

[00:05:49] developed with Windows Insiders.

[00:05:52] Microsoft is holding an AI event on May 20th where more updates are expected to be

[00:05:57] showcased.

[00:05:58] New features for Windows are anticipated to include an AI Explorer app and the

[00:06:02] concept of a co-pilot for every person.

[00:06:06] Microsoft is deploying GPT-4 in the Azure Government Top Secret Cloud for classified

[00:06:11] defense and intelligence customers.

[00:06:14] This isolated environment will give users access to AI-powered tools for drafting

[00:06:18] documents, writing code, and analyzing information.

[00:06:22] The model will be physically unconnected to the public Internet and users will not be

[00:06:26] able to train the model on new data.

[00:06:29] The deployment aims to improve productivity and provide classified users the same AI

[00:06:34] capabilities in a non-classified setting.

[00:06:38] Why do we care?

[00:06:40] Detectors are a step toward combating deepfakes.

[00:06:42] There's no perfect solution to the problem.

[00:06:45] Building on the previous segment, the collection of tools grows and changes rapidly

[00:06:49] and adapts to use cases.

[00:06:52] Let's focus on the isolated GPT-4 for Top Secret, the natural progression of a

[00:06:57] model for each use case.

[00:06:59] We're also intrigued by enterprise offerings like Anthropix, similar to what we've

[00:07:04] seen from OpenAI and Microsoft.

[00:07:06] Circle that area for opportunity.

[00:07:11] AT&T has split its cybersecurity services business and formed a joint venture called

[00:07:16] Level Blue, focusing on managed cybersecurity services.

[00:07:20] Level Blue includes AT&T's managed service business, cybersecurity consulting business,

[00:07:26] and assets from its acquisition of Alien Vault.

[00:07:29] The new company will offer services such as managed firewalls, secure web gateways,

[00:07:34] and services for managing security operations centers.

[00:07:37] Level Blue aims to expand beyond traditional managed security services and adapt to

[00:07:42] the growing trend of managed detection and response services.

[00:07:46] The company will initially serve AT&T's network.

[00:07:48] Customers plans to have a close partnership with AT&T.

[00:07:52] Level Blue will also have an internal research team and leverage threat indicators

[00:07:57] from the OpenThreat Exchange community for threat detection and response.

[00:08:02] Why do we care?

[00:08:04] Cybersecurity embedded into the network makes a lot of sense to me.

[00:08:08] Why would customers buy the unsecure internet firehose when they can buy the more secure

[00:08:13] one that they need?

[00:08:14] Most customers do not need the whole internet and would be much better served by being

[00:08:19] offered that.

[00:08:20] Now, that isn't this.

[00:08:22] This is a spinoff of their managed services and sales business.

[00:08:26] Thus, we care because a new player with significant funding just entered the managed

[00:08:29] security services business.

[00:08:34] The National Society of IT Service Providers has introduced a new badge system to recognize

[00:08:39] outstanding contributions within the community.

[00:08:42] The badges include honors for leadership, client endorsements, individual contributions,

[00:08:46] continuing education and professional distinction.

[00:08:50] The program was developed by members of the NSITSP standing committees and the board

[00:08:55] of directors.

[00:08:56] The specific details of each badge will be announced in the future and a new standing

[00:09:01] committee on professional development has been created.

[00:09:04] The NSITSP aims to foster excellence and growth in the IT service industry.

[00:09:10] Why do we care?

[00:09:12] NSITSP is taking on the idea of licensing and certification while addressing regulatory

[00:09:17] efforts.

[00:09:18] It's logical for their step to be building a recognition system, building the muscle memory

[00:09:23] needed for more advanced certifications.

[00:09:26] This is a step on the longer journey, not the end point.

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