Trump's AI Action Plan, Stargate Drama, Google Offers Chrome Management, AI Labels

[00:00:02] It's Friday, January 24th, 2025, and I'm Dave Sobel. Four things to know today. Trump's AI plan, six months to chart a bias-free future in tech, Stargate's drama, big bucks, bigger egos, and the future of AI infrastructure, Chrome extensions now under lock and key, Google Hands IT, the master control, and AI Labels, emotional tech, and the software shift is the future built on trust. This is the Business of Tech.

[00:00:32] On Thursday, President Trump signed an executive order aimed at developing an artificial intelligence action plan within six months to maintain America's leadership in AI innovation. The order emphasizes creating AI systems devoid of ideological bias and outlines a comprehensive review of policies from the previous administration's AI directives, which Trump rescinded on his first day in office.

[00:00:56] The Office of Management and Budget has been given 60 days to revise previous memorandums related to AI technology's use in the government. Additionally, Trump has directed his advisors to dismantle several policies established by President Joe Biden, including a 2023 executive order that aimed to mitigate the risks associated with AI to consumers and national security. Why do we care?

[00:01:21] I commented earlier this week that we were watching for a proactive move from this administration, and here is one. A plan to make a plan. Within six months, we should have a sense of the direction. Are you ready to get your brand in front of the tech leaders shaping the future of managed services?

[00:01:40] Here at the Business of Tech, we offer flexible sponsorship opportunities to meet your needs, whether it's live show sponsorship, podcast advertising, event promotion, or custom webinars. From affordable exposure options to exclusive sponsorships, our offerings are designed to fit businesses and vendors of all sizes looking to make an impact. Prices start at just $500 per month, making our packages a fraction of typical event sponsorship costs.

[00:02:10] Be a part of the conversation that matters to IT service providers worldwide. Join us at MSP Radio and amplify your message where it counts. Visit MSP Radio and engage today to explore all the ways we can help you grow. Now, I have to update on that Stargate announcement. Initially announced as a deal of up to $500 billion, new details are emerging.

[00:02:37] As reported by the information, OpenAI and SoftBank have each committed $19 billion to the Stargate data center venture. OpenAI CEO Sam Altman revealed that the company will hold a 40% stake in the venture, which will initially raise and does not have $100 billion and potentially $400 billion more over time. SoftBank will also hold a 40% stake. There was a bit of irrelevant drama.

[00:03:03] Elon Musk, the owner of a competing AI company, has publicly questioned the financial viability of Stargate, prompting a rebuttal from Altman. President Trump's team was outraged, as reported by Politico, and believed Musk very much overstepped by publicly denouncing the project. Trump himself downplayed the situation, suggesting that it did not bother him, and pointing out that Musk dislikes one of the investors involved.

[00:03:30] More relevant, European tech leaders expressed concern that the continent might become dependent on American technology dominance, and I've linked to more detailed comments if you want to dive in there. On top of that, the Washington Post reports the deal was finalized months before Trump's recent election victory. Sam Altman indicated that the discussions about the project began in March, well before Trump's return to the White House. Why do we care?

[00:03:57] I find it uncomfortable that whims and personal grudges seem to matter so much in the current landscape, and yet here we are. Listeners, I'm asking for feedback here. For those in IT services, announcements of things that are in, or then entering the market on the announcement, seem vitally important. Announcements of potential things to come, both in investment dollars and in betas or previews, are directionally important. That's why I've been covering them.

[00:04:24] As this story shows, that announcement was more PR noise than real deal. Are you comfortable with the level of labeling I'm doing to the stories, or is more detail required? Am I providing enough context for you to judge that risk of BS appropriately? I want to deliver the right level of value. I'm listening here. Comments very much welcome. Google is enhancing control for IT administrators over Chrome browser extensions.

[00:04:54] Addressing security concerns linked to cyber criminal activity. As part of a new set of features for organizations using Chrome Enterprise, IT admins will soon be able to remotely remove installed extensions and prevent future downloads. The initiative includes a curated Chrome web store experience tailored for businesses, making it easier for employees to find pre-approved extensions. This update aims to minimize risks associated with harmful extensions,

[00:05:22] highlighted by a phishing campaign that hijacked legitimate Chrome extensions last December. Additional tools for admins will be available later this year, including the ability to display custom messages on extension pages to inform users about compliance with company policies. Why do we care? Chrome extensions are a common vector for cyber attacks, with malicious or compromised extensions acting as entry points for phishing, data exfiltration, or malware. Google's move to enhance administrative controls over these extensions

[00:05:52] addresses a long-standing security gap in browser management. For IT service providers, particularly MSPs managing environments for SMBs are larger, This update is a significant step towards reducing risk exposure. IT service providers should familiarize themselves with these tools and consider incorporating browser security audits into their service offerings. And let's end with some big ideas. I've been thinking about AI labels a lot, and seem so have experts,

[00:06:21] including Marina Kozak from Villanova University, who expresses that while labeling AI content may seem like a straightforward solution, it raises numerous questions about effectiveness and trust. Ivar Bonzov from Harvard Business School argues that while generic AI-generated text may not require a label, hyper-realistic images should clearly indicate their AI origins. The goal of these labels is to foster critical evaluation of the content

[00:06:48] as misinformation becomes increasingly prevalent with the rise of deepfakes. Philip Moyer, CEO of Vimeo, emphasizes that mandatory labels should be applied to content that misrepresents reality, aiding consumers in distinguishing authentic information from artificially generated media. The article in Information Week suggests that the design and implementation of these labels requires further research to enhance their effectiveness in combating misinformation.

[00:07:15] And from Silicon Republic, a recent study from Aalto University reveals that successfully integrating artificial intelligence into organization hinges more on understanding emotions than on technology itself. Dr. Natalia Voria, a co-author of the study, emphasizes that while around 266 million organizations worldwide are experimenting with AI, many face challenges due to employee distrust and emotional responses.

[00:07:42] The research examined a consulting firm where employees were uncomfortable with the depth of data collected by an AI tool, leading to data manipulation and lack of faith in the system. Biore highlights that transparency, feedback, and training are crucial for AI adoption. She concludes that without a human-centered approach, even the most advanced AI tools will not reach their potential. Also from Information Week, something that should be music to service providers' ears.

[00:08:10] High-tech companies are facing a crucial transformation as global IT spending rises and shifts towards services away from hardware investments. According to recent research by Accenture, 97% of executives believe that generative artificial intelligence can accelerate the shift to service-oriented models, with 85% expecting these models to enhance revenue streams.

[00:08:33] However, 75% expressed concern that legacy hardware companies could disappear unless they adopt software-like approaches. The research indicates a split in confidence, with only half of executives believing they can meet annual recurring revenue goals. To thrive, companies must pivot to customer-centric strategies, modernizing IT infrastructure, and recalibrate their sales forces. Embracing an as-a-service model is essential for meeting modern customer expectations

[00:09:01] and ensuring sustainable growth in a rapidly evolving digital landscape. Why do we care? I like to pose questions, so working backwards. Will legacy hardware vendors succeed in transitioning to software or as-a-service models, or will we see further market consolidation? How will MSPs and IT consultants capitalize on this transformation to offer tailored service packages that address the shift?

[00:09:28] Will AI vendors focus more on change management, training, and user experience to improve adoption? How might service providers and consultants leverage this insight to become key facilitators of successful AI integrations? Will regulatory bodies mandate AI labeling globally, and how will those standards differ by region? How might AI companies enforce or subvert these requirements? And I'll take a moment to provide my policy for AI labeling.

[00:09:57] Any content coming out on the show has been reviewed by a human, and thus it's the human's responsibility. I do use AI to assist in the production of content. For example, it's a writing assistant, grammar checker, and idea generation tool. The English language voice and video are me, authentically, and if I use AI voice or video, it will be labeled, and the specific reason for the use will be noted. For example, if I'm sick.

[00:10:24] Any foreign language AI translation, such as the Spanish language show, is based on that English source and labeled in the show's description and with appropriate tagging, such as YouTube's AI content label. Thanks for listening. It's Beer Can Appreciation Day, Macintosh Computer Day, National Compliment Day, National Peanut Butter Day, and International Mobile Phone Recycling Day. Apparently, it's also Talk Like a Grizzled Prospector Day,

[00:10:54] but I generally prefer Talk Like a Pirate Day. The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines posted at businessof.tech. If you've enjoyed the show, make sure you've subscribed or followed on your favorite platform. It's free and helps directly. Give us a review, too. If you want to support the show, visit patreon.com slash MSB Radio, and you'll get access to content early.

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[00:11:50] visit mspradio.com slash engage. Once again, thanks for listening, and I will talk to you again on our next episode. Part of the MSP Radio Network.