Wed Feb-7-2024: Deepfakes and the Threat to Digital Identity, Earnings Report, Vision Pro Management

In this episode of the Business of Tech podcast, host Dave Sobel discusses the impact of AI on digital identity. He highlights a recent case in Hong Kong where a finance worker was tricked into paying out $25 million to fraudsters using deepfake technology. Additionally, Dave mentions an underground website called OnlyFake that sells realistic fake IDs for just $15, posing a threat to cybersecurity. He also provides insights into tech earnings analysis, including trends in gaming, AI, and digital ads driving market trends. Lastly, Dave discusses Apple's Vision Pro integration into IT management, which could be a potential game changer for enterprise.

Three things to know today

00:00 AI Deepfakes Challenge Digital Identity: $25 Million Scam and Fake ID Crisis

03:33 Tech Earnings Analysis: Gaming, AI, and Digital Ads Driving Market Trends

08:18 Apple's Vision Pro Integrates into IT Management: Potential Game-Changer for Enterprise

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[00:00.000 --> 00:08.320] It's Wednesday, February 7, 2024, and I'm Dave Sobel, three things to know today. [00:08.320 --> 00:16.800] AI deep fakes challenge digital identity, a $25 million scam, and a fake ID crisis. [00:16.800 --> 00:22.960] Tech earnings analysis, gaming, AI, and digital ads, driving market trends, and Apple's Vision [00:22.960 --> 00:28.920] Pro integrates into IT management, a potential game changer for enterprise. [00:28.920 --> 00:33.080] This is the Business of Tech. [00:33.080 --> 00:37.360] This episode sponsored by Skykick, new sponsor for MSP Radio. [00:37.360 --> 00:42.560] Skykick has been helping over 30,000 MSPs for the past 10 years be more successful in the [00:42.560 --> 00:48.520] cloud, migrating, protecting, securing, and managing their Microsoft 365 customers. [00:48.520 --> 00:54.640] A highlight in their offerings is their Microsoft 365 Data Protection Solution Cloud Backup. [00:54.640 --> 00:58.360] They've recently enhanced it with a new feature called Smart Insights. [00:58.360 --> 01:03.640] This feature delivers visual insights, empowering partners to engage more efficiently with customers [01:03.640 --> 01:06.880] on Microsoft 365 Data Protection. [01:06.880 --> 01:09.640] And MSP Radio listeners get a special offer. [01:09.640 --> 01:16.000] Get a free 2M365 email migration for a customer when you bundle it with backup. [01:16.000 --> 01:22.320] Visit Skykick.com slash MSP Radio to learn details. [01:22.320 --> 01:27.840] I need to start by talking about the impact AI is having on digital identity. [01:27.840 --> 01:34.880] CNN reported on a finance worker in Hong Kong who was tricked into paying out $25 million [01:34.880 --> 01:38.720] to fraudsters using deepfake technology. [01:38.720 --> 01:44.840] The worker attended a video call with what he believed were colleagues but were instead [01:44.840 --> 01:47.520] deepfake recreations. [01:47.520 --> 01:51.720] The scam was discovered when the worker checked with the company's head office. [01:51.720 --> 01:57.600] Hong Kong police have made six arrests in connection with deepfake scams. [01:57.600 --> 02:03.760] And 404 Media reported on an underground website called Onlyfake which uses neural networks [02:03.760 --> 02:08.400] to generate realistic fake IDs for just $15. [02:08.400 --> 02:13.760] Posing a threat to cybersecurity and enabling activities like bank fraud and money laundering. [02:13.760 --> 02:19.840] The technology has been verified to produce convincing IDs instantly, tooling online verification [02:19.840 --> 02:21.040] systems. [02:21.040 --> 02:26.880] The service claims to use generators to create up to 20,000 documents daily with data from [02:26.880 --> 02:29.000] an Excel table. [02:29.000 --> 02:35.400] By 2026, Gartner predicts that 30% of enterprises will no longer consider identity verification [02:35.400 --> 02:42.560] and authentication solutions reliable due to the use of AI generated deepfakes. [02:42.560 --> 02:47.000] And in some insight into the viral deepfake images of Taylor Swift previously reported [02:47.000 --> 02:53.200] on, they were created as part of an online competition on 4chan to bypass AI software [02:53.200 --> 02:54.800] content filters. [02:54.800 --> 02:59.400] The images were generated using Microsoft designer and later shared on Telegram and [02:59.400 --> 03:01.760] X. [03:01.760 --> 03:03.600] Why do we care? [03:03.600 --> 03:07.520] You can't trust video and you can't trust identification anymore. [03:07.520 --> 03:12.920] That's a big deal and shows the shakeup that's coming because of AI. [03:12.920 --> 03:19.240] And 30% of enterprises already recognize that identity verification and authentication solutions [03:19.240 --> 03:22.040] will be unreliable in two years. [03:22.040 --> 03:27.880] There's a seismic shift in the identity landscape that's safe to say businesses are [03:27.880 --> 03:30.240] woefully prepared. [03:30.240 --> 03:35.320] That screams opportunity. [03:35.320 --> 03:39.400] Let's catch up on some of the earnings reports that have come out and see what insights we [03:39.400 --> 03:41.360] can find. [03:41.360 --> 03:46.520] Microsoft's market capitalization surpassed $3 trillion, a good portion of which is driven [03:46.520 --> 03:48.520] by AI. [03:48.520 --> 03:54.680] The Azure revenue increased by 30% in the quarter ending December 31 with a boost from [03:54.680 --> 03:57.240] its artificial intelligence technologies. [03:57.240 --> 04:05.240] The company's overall revenue rose 18% to $62 billion, surpassing Wall Street's expectations. [04:05.240 --> 04:10.320] Microsoft CEO Satya Nadella highlighted the growing adoption of AI tools and the acquisition [04:10.320 --> 04:12.720] of the Activision Blizzard. [04:12.720 --> 04:19.240] Having revenue jumped 50%, making Microsoft gaming a bigger business than Microsoft Windows [04:19.240 --> 04:21.080] for the first time. [04:21.080 --> 04:27.480] Other notable results include a 24% increase in Microsoft cloud revenue and a 9.5% increase [04:27.480 --> 04:29.320] in LinkedIn revenue. [04:29.320 --> 04:34.960] The company's intelligent cloud segment, including Azure, showed strong growth with a 30% increase [04:34.960 --> 04:35.960] in revenue. [04:36.600 --> 04:42.760] Alphabet, the parent company of Google, reported a net income of $20.7 billion on revenues [04:42.760 --> 04:48.120] of $86.3 billion in the quarter ending December 31, 2023. [04:48.120 --> 04:55.400] For the full year, the firm reported a net income of $73.8 billion on revenues of $307.4 [04:55.400 --> 04:56.400] billion. [04:56.400 --> 05:00.920] Most revenues came from advertising and revenue from subscriptions, platforms and devices [05:00.920 --> 05:07.520] grew 18.5% and Google cloud revenues jumped 20.4%. [05:07.520 --> 05:13.680] Google is also expected to spend $700 million on severance costs this quarter, according [05:13.680 --> 05:15.520] to that earnings report. [05:15.520 --> 05:21.360] This comes after the company laid off approximately 12,000 employees in January 2023, resulting [05:21.360 --> 05:27.560] in severance and related costs of $2.1 billion for the year. [05:27.560 --> 05:34.480] Amazon reported a net income of $10.6 billion on revenues of $170 billion in last quarter, [05:34.480 --> 05:36.600] exceeding expectations. [05:36.600 --> 05:42.080] Revenues were up 14% year over year, driven by strong holiday shopping and growth in various [05:42.080 --> 05:48.760] business segments such as e-commerce, advertising, AWS and subscription services. [05:48.760 --> 05:54.520] AWS reported a slight increase in revenue growth in the last quarter of 2023, signaling [05:54.520 --> 05:57.920] a potential end to more than a year of contraction. [05:57.920 --> 06:02.000] The company's operating profit also surged by 38%. [06:02.000 --> 06:07.880] Amazon's cloud revenue grew 13% in the fourth quarter to $24.2 billion, but the company's [06:07.880 --> 06:13.440] investments in conversational AI have yet to materialize. [06:13.440 --> 06:18.200] Apple reported a 2% increase in revenue for its first fiscal year quarter, driven by higher [06:18.200 --> 06:20.040] iPhone and services revenues. [06:20.440 --> 06:26.120] However, sales of wearables and iPads declined while max sales remained flat. [06:26.120 --> 06:31.080] The shorter reporting period impacted the December quarter numbers, but Apple indicated positive [06:31.080 --> 06:33.600] expectations for the upcoming quarter. [06:33.600 --> 06:40.160] CEO Tim Cook teased a big AI announcement later this year, hinting at a huge opportunity for [06:40.160 --> 06:42.640] Apple with Generative AI. [06:42.640 --> 06:49.480] The announcement is expected at WWDC in June, where Apple typically unveils new products. [06:49.480 --> 06:55.040] Apple has been testing AI tools internally, including a chat GPT-style bot and a revamped [06:55.040 --> 06:58.640] Siri that uses Generative AI. [06:58.640 --> 07:03.400] And tying some of this together, digital ads show sign of rebound as Meta, Amazon, and [07:03.400 --> 07:06.920] Google ads business experience growth in the market. [07:06.920 --> 07:13.680] Metas ad sales increased by 24%, Amazon's ad unit rose by 27%, and Google's ad business [07:13.680 --> 07:16.000] grew 11%. [07:16.000 --> 07:21.600] Its predict higher spending due to big advertiser events and expect global ad spending to jump [07:21.600 --> 07:23.760] 10% in 2024. [07:23.760 --> 07:27.440] Why do we care? [07:27.440 --> 07:29.800] Gaming bigger than Windows. [07:29.800 --> 07:34.440] That is both a statement on the size of the gaming market, which is enormous, and on the [07:34.440 --> 07:38.960] Windows market, which is a mature product on the way. [07:38.960 --> 07:40.920] Where is the growth here? [07:40.920 --> 07:45.040] Cloud businesses, of which all three companies are showing growth. [07:45.040 --> 07:51.440] I did want to highlight the raw cost of severance, 700 million this quarter on a net [07:51.440 --> 07:57.000] income of 20 billion, with revenues of 86 billion. [07:57.000 --> 08:03.080] Apple has sold all the iPhones, they're running out of growth there and exploring new markets. [08:03.080 --> 08:07.800] It should be no surprise that AI is in the works, and their long-term investment in trying [08:07.800 --> 08:12.720] out AR and VR makes sense when you put it in this context. [08:12.720 --> 08:16.160] They need to place some bets to find new markets. [08:16.160 --> 08:24.120] And speaking of that market, I promise I won't overdo it on spatial computing and the Vision [08:24.120 --> 08:29.200] Pro, but there are some stories relevant to the device and IT services that I wanted [08:29.200 --> 08:30.960] to highlight. [08:30.960 --> 08:36.200] From TechCrunch, Apple is incorporating the Vision Pro into the Apple device management [08:36.200 --> 08:41.560] process, allowing IT departments to manage the device in the same way as iPhones, iPads, [08:41.560 --> 08:43.280] watches, and Macs. [08:43.280 --> 08:49.400] The beta release of VisionOS 1.1 includes device management capabilities, providing tools such [08:49.400 --> 08:53.520] as single sign-on, identity management, and security. [08:53.520 --> 08:58.040] Apple sees the enterprise as a significant market for the Vision Pro and aims to support [08:58.040 --> 09:02.760] networking, data protection, and integration with existing systems. [09:02.760 --> 09:07.880] Partners like Jamf, which helps make Apple device management, are excited about the device's [09:07.880 --> 09:11.480] potential for transforming how employees work. [09:11.480 --> 09:16.600] The device teardowns are now available, and we get some insight into the device's durability. [09:16.600 --> 09:21.280] The headset has excellent shatter resistance, but scratches easily. [09:21.280 --> 09:26.480] Drop tests show the device to be drop resistant, but the right speaker broke before the glass [09:26.480 --> 09:27.480] front. [09:27.480 --> 09:30.040] Multiple drops eventually cracked the screen. [09:30.040 --> 09:35.360] A teardown revealed that the glass is sandwiched between a soft plastic laminate that common [09:35.360 --> 09:37.600] metal items can scratch. [09:37.600 --> 09:43.720] Despite its durability, replacing the front glass is expensive without Apple care. [09:43.720 --> 09:49.640] Adobe's Firefly AI, the text-to-image tool, will be available on the Vision Pro as a native [09:49.640 --> 09:54.960] app, allowing users to generate and place images in real-world spaces. [09:54.960 --> 10:00.760] The Firefly VisionOS app offers familiar features and editing tools, while Lightroom provides [10:00.760 --> 10:04.080] a simplified interface for photo editing. [10:04.080 --> 10:09.760] OpenAI has released a VisionOS Check GPT app for the device, bringing artificial intelligence [10:09.760 --> 10:11.920] and mixed reality together. [10:11.920 --> 10:18.000] While the app is mainly text-based and lacks 3D aspects, users can ask questions and receive [10:18.000 --> 10:21.040] answers through speech. [10:21.040 --> 10:26.000] TeamViewer has unveiled the TeamViewer Spatial Support app, which allows remote users to interact [10:26.000 --> 10:30.080] with lifelike 3D models and collaborate in real-time. [10:30.080 --> 10:35.640] The app uses ARKit and the built-in LiDAR scanner on the device to capture detailed [10:35.640 --> 10:38.760] 3D models of devices in need of support. [10:38.760 --> 10:44.880] The solution aims to enhance after-sales support and field service by providing a synchronized [10:44.880 --> 10:50.640] 3D experience for experts and on-site technicians, resulting in faster response times and fewer [10:50.640 --> 10:52.200] errors. [10:52.200 --> 10:55.560] And don't let it be said that I don't highlight contrasting views. [10:55.560 --> 11:01.680] The disconnect blog argues that the device is a product with no purpose. [11:01.680 --> 11:03.440] Why do we care? [11:03.440 --> 11:06.160] The device is seeking a purpose, frankly. [11:06.160 --> 11:09.400] The blog isn't wrong, it currently doesn't have one. [11:09.400 --> 11:11.320] Apple released a dev kit. [11:11.320 --> 11:16.600] We're interested to see if and what purpose it finds. [11:16.600 --> 11:20.280] Apple has included enterprise management capabilities in their plan. [11:20.280 --> 11:25.080] There are AI and workplace technologies being released that could result in something. [11:25.080 --> 11:30.320] For all the buzz over watching movies, I'm more interested in finding out if use cases [11:30.320 --> 11:32.520] like field service take off. [11:32.520 --> 11:37.760] And now we know it's capable of it. [11:37.760 --> 11:40.800] Today's episode is supported by CoreView. [11:40.800 --> 11:47.200] Your customers need your Microsoft 365 expertise and CoreView has the only M365 management [11:47.200 --> 11:50.240] platform designed for MSPs. [11:50.240 --> 11:55.560] Engage hundreds of tenants, automated manual tasks, and monitor compliance all while intelligently [11:55.560 --> 11:57.480] comparing to the baseline. [11:57.480 --> 12:03.520] With a no-code control approach, CoreView revolutionizes your Microsoft 365 administration. [12:03.520 --> 12:08.240] This powerful platform enables automatic reporting and remediation, ensuring optimal [12:08.240 --> 12:10.760] performance and security. [12:10.760 --> 12:11.760] The best part? [12:11.760 --> 12:16.520] You achieve this high level of service without the need for a large workforce, allowing you [12:16.520 --> 12:20.080] to focus on growing your business through efficiency. [12:20.080 --> 12:21.680] Want to know more? [12:21.680 --> 12:27.520] Visit coreview.com slash MSP and find out more. [12:27.520 --> 12:29.560] Thanks for listening today. [12:29.560 --> 12:33.200] National send a card to a friend day. [12:33.200 --> 12:34.200] And love that sentiment. [12:34.200 --> 12:35.200] Got a comment? [12:35.200 --> 12:36.200] A question? [12:36.200 --> 12:37.920] A thought on a story? [12:37.920 --> 12:40.120] Put it in the comments if you're on YouTube. [12:40.120 --> 12:43.320] Reach out on LinkedIn if you're listening to the podcast. [12:43.320 --> 12:47.120] I will talk to you again tomorrow. [12:47.120 --> 12:52.000] The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines [12:52.000 --> 12:54.840] posted at businessof.tech. [12:54.840 --> 12:59.960] If you like the content, please make sure to hit that like button and follow or subscribe. [12:59.960 --> 13:04.960] It's free and easy and the best way to support the show and help us grow. [13:04.960 --> 13:09.640] You can also check out our Patreon where you can join the Business of Tech community at [13:09.640 --> 13:16.960] patreon.com slash MSP radio or buy our Why Do We Care merch at businessof.tech. [13:16.960 --> 13:24.640] Finally, if you're interested in advertising on this show, visit MSPradio.com slash engage. [13:24.640 --> 13:26.960] Once again, thanks for listening to me. [13:26.960 --> 13:35.640] I will talk to you again on our next episode of the Business of Tech. Transcription results written to '/home/forge/transcribe3.sonicengage.com/releases/20240207165123' directory