Tue Apr-16-2024: Amazon's Three-Layer GenAI Stack, OpenAI's ChatGPT Updates, EU Broadcom Scrutiny

[00:00:00] It's Tuesday, April 16, 2024, and I'm Dave Soule.

[00:00:05] Three things to note today.

[00:00:07] Amazon's three-layer GenAI stack aiming to cut costs and boost customization.

[00:00:14] Researchers challenge the effectiveness of Google's AI in material science breakthroughs

[00:00:18] and broadcom under EU scrutiny for that VMware pricing and licensing policy change.

[00:00:25] This is The Business of Tech.

[00:00:29] In today's digital work environment, the browser is the most widely used operating system, yet

[00:00:34] remains a significant security blind spot.

[00:00:37] Adacama has introduced the browser security platform purpose-built for MSPs.

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[00:00:47] today's window of work, the browser.

[00:00:51] Adacama's browser extension empowers MSPs to set data policies, gain critical insights,

[00:00:56] and optimize the user experience.

[00:00:58] Adacama recently announced the limited time 50 for 50 program, discounting the per user

[00:01:04] price by 50% when you deploy the plugin to 50% or more of your client endpoints.

[00:01:10] Visit adacama.com-msp-radio to learn more and see the platform in action.

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[00:01:25] Amazon CEO Andy Jassy has identified generative AI as the company's next big focus.

[00:01:31] In his annual letter to shareholders, Jassy outlined Amazon's plans to position itself

[00:01:37] at the forefront of the AI revolution.

[00:01:40] The company is highlighting the three layers of its generative AI stack.

[00:01:44] The bottom layer focuses on training models and reducing customer costs.

[00:01:49] The middle layer allows companies to customize existing models, and the top layer involves

[00:01:53] building generative AI applications for Amazon's consumer businesses.

[00:01:59] OpenAI has released an updated version of ChatGPT, GPT4 Turbo, which offers improvement in writing,

[00:02:06] math, logical reasoning, and coding.

[00:02:08] The new model uses conversational language to provide more direct and less re-boss responses.

[00:02:15] It has also an updated knowledge base, was trained on data up to December 2023.

[00:02:22] Also OpenAI's GPT4 Turbo has reclaimed the best AI model title from Anthropics Clawed 3 in the

[00:02:29] large language model systems organization Chatbot Arena.

[00:02:33] The updated version of GPT4 Turbo, GPT4 Turbo 2024-0409 is leading in the overall coding

[00:02:41] and English categories showcasing improvements in coding, math, logical reasoning, and writing

[00:02:46] capabilities.

[00:02:48] According to a report by productive, ChatGPT has become the most prevalent shadow IT application,

[00:02:54] surpassing other popular tools like LinkedIn, Canva, and Adobe Acrobat.

[00:03:00] And from the decoder, OpenAI CEO Sam Altman is pitching ChatGPT Enterprise to large corporations,

[00:03:07] highlighting the advantages of working directly with the company, accessing the latest

[00:03:11] models, and having more options for custom AI products.

[00:03:16] According to Gardner Research by 2028, three-quarters of Enterprise software engineers will use some

[00:03:21] form of generative AI code assistant.

[00:03:24] While these tools can lead to increased job satisfaction and retention, actual efficiency

[00:03:29] gains may vary.

[00:03:31] Organizations may only see 5-15% efficiency savings when using coding assistants on complex

[00:03:37] business logic and legacy code bases.

[00:03:40] Additionally, AI tools cannot challenge developers like human-payer programmers can.

[00:03:46] Why do we care?

[00:03:48] Amazon's approach offers potential opportunities for providers too.

[00:03:52] Models, customizing existing models, or building applications.

[00:03:55] I'd be remiss if I didn't include implementing applications helping with policy and data

[00:04:01] management and ongoing system monitoring.

[00:04:04] OpenAI sees that tool.

[00:04:06] They have an enterprise sales strategy and I wanted to highlight it.

[00:04:09] The popularity of ChatGPT as a shadow IT application indicates a grassroots level acceptance and

[00:04:17] utility perception among end users, which contrasts with formal adoption strategies at the organizational

[00:04:23] level.

[00:04:24] Suggests a need for companies to align their IT strategies more closely with actual

[00:04:28] user preferences and practices harness the full potential of AI tools.

[00:04:35] Adobe plans to allow customers to bring third party AI models into its professional image

[00:04:40] and video programs, including Premiere Pro.

[00:04:44] This moves comes amid a debate over the legality and ethics of generative AI among artists and

[00:04:49] creators.

[00:04:50] Adobe aims to support models from openAI, runway, and PykeGalab, but the details of

[00:04:55] accessing and paying for these models has yet to be decided.

[00:04:59] The company's commercially safe promise and the inclusion of AI-generated images

[00:05:04] in its stock image portfolio has faced criticism.

[00:05:07] However, Adobe believes that supporting third party models is necessary to provide greater

[00:05:12] versatility to its customers.

[00:05:15] Google's Outfit DeepMind claimed to have discovered millions of new materials using

[00:05:20] deep learning.

[00:05:21] External researchers analyzing the foundries have found that the O structures do not

[00:05:26] meet the criteria of being credible, useful, and novel.

[00:05:31] While AI does hold the promise for materials discovery, the specific research by Google

[00:05:35] has been criticized for not being a significant breakthrough.

[00:05:39] The debate centers around the effectiveness of AI in machine learning and discovering

[00:05:43] new materials and the need for contextualization, testing, and practical application of these

[00:05:48] discoveries.

[00:05:49] Why do we care?

[00:05:52] We'll want to continue to critically examine AI's promises.

[00:05:56] I'm convinced they will exist, but note that in the previous story I cited 5 to 15%

[00:06:01] increases for programmers.

[00:06:03] That's great!

[00:06:05] And also incremental.

[00:06:07] The legality and ethics of generative AI in creative professions are still hotly

[00:06:11] debated topics, concerns about authorship, originality, and the economic implications

[00:06:16] for traditional creators.

[00:06:18] The trick now is to minimize your customer's exposure.

[00:06:22] There's some good news that debate is happening in the open.

[00:06:25] Researchers are testing the capabilities and reporting back.

[00:06:29] While AI presents groundbreaking opportunities for innovation and efficiency, its practical

[00:06:34] applications require consideration of ethical, legal, and professional standards.

[00:06:39] For businesses and professionals in the technology and creative sectors, key takeaway

[00:06:43] is the importance of maintaining a balance between leveraging AI's potential and ensuring

[00:06:47] that its integration respects existing frameworks and adds genuine value.

[00:06:53] Measuring genuine value?

[00:06:55] Now there's a skill you can differentiate yourself to customers with.

[00:07:01] From Reuters, EU antitrust regulators are questioning Broadcom about changes to VMware's licensing

[00:07:07] conditions following complaints from EU business users and a trade group.

[00:07:12] The change has allegedly resulted in price increases, re-bundling of licenses, and a

[00:07:17] ban on reselling licenses.

[00:07:19] Broadcom has announced changes in response, including reducing the price of VMware

[00:07:24] cloud foundation and standardizing pricing across cloud providers.

[00:07:29] Why do we care?

[00:07:32] Leave it to European regulators to help out.

[00:07:34] This is a welcome update.

[00:07:36] We'll see what they find.

[00:07:40] With as many breaches and security concerns as I report in this show, it should be

[00:07:44] obvious that cybersecurity is not just about technology but also the human

[00:07:49] expertise needed to interpret and respond to complex threats.

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[00:08:19] Want to know more about the platform?

[00:08:21] Visit huntress.com slash MSP radio to learn more.

[00:08:28] Thanks for listening.

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