Small Businesses Seek AI Efficiency Amid Digital Gaps; New Regulations Impact Data Privacy

[00:00:01] It's Tuesday, July 8th, 2025 and I'm Dave Solvig. Four things to know today. Small businesses show gaps in digital maturity and a hunger for AI-driven efficiency. Agentic AI offers a big opportunity but risks a 40% project failure rate. New regulations raise the stakes for data privacy and governance. Vendors roll out AI-powered tools and strategic acquisitions reshaping service models. This is the Business of Tech.

[00:00:30] A new report from the National Federation of Independent Business reveals that while 82% of small business owners have websites, only 19% accept payments online. The report highlights a growing interest in artificial intelligence, with 24% of small employers currently using AI via products like ChatGPT and Canva, although adoption varies significantly by company size. In practical terms, nearly 29% of respondents leverage AI for communication tasks,

[00:01:00] and 27% use it for marketing. Additionally, there's a desire among many small business owners to improve operational efficiency through technology. More than half at 57% reported introducing new or significantly improved technologies within the past two years, considered a vital step toward maintaining competitiveness. Despite 65% of respondents believing that new technology helps them remain competitive, only 11% feel as it allows them to outperform competitors.

[00:01:29] The report indicates a pressing need for improved technology to enhance competitiveness, with 98% of AI users reporting no change in employment numbers, suggesting that technology adoption does not necessarily lead to job losses. The friend of the podcast is a digital technology to improve intelligence, and that's the best way to improve technology. The current market is now for more than half-time, a digital technology, and that's the best way to improve technology.

[00:01:54] The current market is projected to grow at a compound annual growth rate of 59.3%, reaching over $158 billion in services revenue by 2028. However, the opportunities offered by Agentec AI vary greatly across different market segments. In the large enterprise and public sector, the focus will be on building ecosystems that connect major platforms from hyperscalers like AWS, Microsoft, and Google.

[00:02:20] Meanwhile, small and medium-sized businesses are expected to adopt Agentec AI, mainly through software-as-a-service solutions, working through platforms like Salesforce and Workday. A recent report from Gartner shows that 40% of Agentec artificial intelligence projects are expected to be canceled within two years, as many of these tools are simply rebranded robotic process automation solutions and chatbots. The consultancy states that rising costs, a lack of return on investment,

[00:02:49] and immature use cases are major reasons for the trend. According to Gartner, only 19% of organizations have made significant investments in Agentec AI, while 42% have taken a more cautious approach. A senior direct analyst at Gartner expressed concern that many current projects are driven by hype rather than practical use, stating that organizations need to cut through the hype and make informed decisions about the technology.

[00:03:14] The report suggests that while many Agentec AI proposals currently lack significant value, genuine tools are expected to provide real benefits to enterprises in the future. Why do we care? This isn't just about jumping on another AI bandwagon. The real signal is SMB's desire for operational efficiency and willingness to invest in technologies that solve specific pain points. 82% of small businesses have a website, yet only 19% accept payments online.

[00:03:42] There's a glaring disconnect in digital maturity. It highlights an underserved need for integrated e-commerce solutions for providers. Not just the technical ability to accept payments, but secure, user-friendly platforms that align with SMB workflows. Consider how many more businesses should be able to deliver their services online, including yours. For IT services firms, the play is practical AI enablement and SaaS integration.

[00:04:10] Not building AI tools, but guiding SMBs through thoughtful adoption. Focus on low-risk, high-impact AI solutions like automated reporting, customer response bots, and basic workflow automations. Position yourself as an AI guide, helping SMBs cut through that hype and avoid failed projects. And package offerings around business outcomes, not technology features. That's how to differentiate. Agentic AI may well be transformative,

[00:04:39] but the willed winners in the channel will be those who help SMBs extract real value while avoiding the 40% project failure cliff that Gartner is warning about. Welcome to Comet Backups Club of No Excuses. Behind every smooth-running business is an everyday IT hero who refused to settle. Who didn't give up. Because finger-pointing doesn't get a company up and running again. Excuses don't restore data.

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[00:05:33] Because heroes don't wait, they prepare. I also noted two items in regulation I didn't want to miss. Creative Commons has introduced a new initiative called CC Signals, designed to create a framework for sharing data sets in the era of artificial intelligence. The project aims to address increasing concerns about data privacy and accessibility as organizations update their policies on using user data for training AI models.

[00:06:00] The CC Signals initiative enables data set owners to specify how their content can be reused, encouraging a balance between the open nature of the internet and the rising demand for data in AI development. The CEO of Creative Commons stated that, quote, CC Signals are designed to sustain the commons in the age of AI, end quote, highlighting the importance of ethical data practices. The organization is currently seeking public input on early designs and plans to launch an alpha version in November 2025.

[00:06:31] The United States Supreme Court has upheld a Texas law requiring websites with sexual content to verify the ages of all visitors, a ruling that advocates warned could seriously affect internet privacy. The decision permits states to enforce age verification methods that might include uploading government IDs rather than just self-declarations of age. Eighteen states have already passed similar laws, raising concerns about internet privacy advocates about possible breaches of personal data.

[00:07:00] According to Aaron Mackey, the free speech and transparency litigation director at the Electronic Frontier Foundation, the regulations place heavy burdens on adults seeking lawful access to content, thus risking their anonymity and data security. Why do we care? Both developments are signals of a shifting internet regulatory landscape where data governance and privacy are no longer optional, their core business risks. For providers, it creates a strategic opening to offer compliance-as-a-service bundles, like data governance consultants,

[00:07:29] route CC signals or AI ethics or dataset licensing. Privacy and security frameworks for client websites facing age verification laws, and secure ID verification integrations with strong encryption and minimal data retention. The providers who thrive will be those who stop seeing these as one-off projects and instead build recurring services around data privacy, governance, and compliance readiness. There is a clear path for IT services firms to evolve,

[00:07:55] not just keeping clients' tech running, but actively keeping them out of regulatory trouble. TeamViewer has introduced TeamViewer Intelligence, a new set of AI-powered features designed to improve IT support workflows. The main tool, TeamViewer Copilot, functions as a contextual AI assistant during remote support sessions, allowing IT professionals to access device data, create resolution workflows, and automate routine tasks easily.

[00:08:22] The new features also include session insights and analytics, giving IT leaders a comprehensive view of support operations through automated documentation and performance metrics. Hornet Security has launched its AI Cyber Assistant, which supports two new cybersecurity tools as part of its 365 Total Protection Plan 4. These tools, called Email Security Analyst and Teams Protection, are designed to improve security for small and medium-sized businesses

[00:08:50] by automating threat responses and safeguarding communication platforms. Email Security Analyst automatically responds to user questions about potential threats, greatly reducing the workload for Security Operations Center and Service Desk teams. Teams Protection defends Microsoft Teams users by scanning messages for malicious content. Atygy has expanded its support for managed service providers in the Mac market with the launch of its new pre-built app catalog,

[00:09:17] designed to streamline the management of popular macOS applications. This solution addresses the challenges faced by many IT teams who struggle with the complexities of maintaining macOS applications across diverse client devices. The catalog offers a curated selection of commonly used applications, which can be deployed and updated with a single click, ensuring compliance with security requirements without the need for manual scripting. Microsoft has officially launched the Microsoft 365 Copilot app for macOS,

[00:09:47] giving users access to the enterprise version of its AI chatbot. This new app is built for smooth interaction with Microsoft Office files and supports both personal and business accounts. The latest version improves the enterprise experience, enabling users to use Microsoft 365 Copilot chat, which integrates company data and security features. Calyptics Security Corporation has announced the launch of the Calyptics Cloud Manager, a new cloud management platform designed to simplify the management

[00:10:15] of access enforcer firewalls for MSPs. The platform enables users to monitor, configure, and update multiple firewalls from a single interface, fulfilling a long-standing demand for efficient fleet management among partners. Key features include centralized fleet visibility, unified policy management, and the ability to perform bulk updates, allowing providers to manage client firewalls more effectively. Why do we care? Well, this collection of launches reinforces a clear trend.

[00:10:44] The tools providers rely on are becoming more AI-powered, MSP-centric, and cloud-managed. For providers, the winners will leverage these tools not just for efficiency gains, but in enablers of higher-margin service offerings. Think AI-enhanced support desks, managed Microsoft 365 Security, or Mac Fleet Management subscriptions. However, careful vendor evaluation is critical. The market is noisy with AI features that don't yet deliver transformative value.

[00:11:13] MSPs should prioritize tools that integrate seamlessly with their existing stack and offer measurable time savings. Providers can either embrace these enhancements to evolve their service models or risk being outpaced by competitors delivering AI-augmented clouded natives operating. In acquisition news, Grammarly has acquired the email application Superhuman, marking a strategic move into the email management market.

[00:11:39] The acquisition aligns with Grammarly's efforts to improve its suite of writing and communication tools, aiming to offer users a more seamless experience across various platforms. Superhuman, known for its fast and efficient email interface, has been popular among professionals looking to improve their email workflows. The integration of Superhuman's features with Grammarly's Advanced Writing Assistant is expected to boost users' communication effectiveness. Comet Backup has been acquired by WebPros,

[00:12:06] a major move that boosts Comet's ability to deliver backup solutions to IT professionals and businesses. The acquisition places Comet Backup within a larger ecosystem that includes established brands like CPanel, Plesk, and WHMCS, aiming to help digital and IT leaders succeed in the digital world. WebPros runs one of the most widely used web enablement ecosystems globally, with over 27 million users,

[00:12:33] managing more than 750,000 servers and 60 million domains across 227 countries. Comet Backup will keep operating independently, ensuring no disruption to current services while speeding up product development and improving customer support. LevelBlue has announced its acquisition of TrustWave, establishing itself as the largest independent managed security service provider in the industry. This move aims to boost LevelBlue's capabilities and manage detection and response services

[00:13:02] by leveraging TrustWave's advanced artificial intelligence and extensive cybersecurity infrastructure. The merger combines LevelBlue's expertise and risk management with TrustWave's Fusion platform, which offers 24x7 cybersecurity protection worldwide. TrustWave recently received full authorization from a Federal Risk and Authorization Management Program, or FedRAMP, marking a significant milestone in its leadership in cybersecurity.

[00:13:28] The acquisition is part of LevelBlue's broader plan to bring together top organizations in the field. And why do we care? Well, let's comment on the why for each deal. Grammarly's acquisition of Superhuman isn't just about adding an email app, it's a move toward vertical integration of communication tools. WebPros brings Comet Backup into its ecosystem, like cPanel, Plesk, and more, and it's a strategic play for S&B web hosting and digital agencies.

[00:13:56] Consider my earlier comment about leveraging e-commerce. Putting S&B infrastructure tools into that stack is an interesting alternative approach. LevelBlue's acquisition of TrustWave creates the largest independent MSSP, a clear indicator of the escalating demand for cybersecurity solutions. And now you know the why to care for each acquisition.

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[00:15:17] Today is National Video Game Day, which is the only one I'm going to focus on. Join me for a webinar sponsored by ThreatDown, AI's dark side, what every MSP needs to know. Visit bit.ly slash ThreatDown with link in the show notes. That's next week. Make sure to sign up. The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines posted at businessof.tech.

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