The U.S. economy is demonstrating resilience with strong consumer spending and low unemployment filings, despite looming inflation and tariff pressures. Retail sales rose by 0.6% in June, surpassing expectations and indicating solid growth in gross domestic product for the second quarter. However, concerns about rising import costs, which saw their largest monthly increase in over a year, continue to cast a shadow over the economic outlook. While manufacturers anticipate growth and increased hiring, the uncertainty surrounding tariffs remains a significant concern.

IBM's CEO, Arvind Krishna, argues that fears of artificial intelligence (AI) eliminating jobs are exaggerated, suggesting that AI will actually enhance employment opportunities by increasing productivity. He notes that while some clerical roles may be phased out, new job creation will occur in programming and sales. Meanwhile, Gartner forecasts a substantial rise in global IT spending, projected to reach $5.43 trillion in 2025, driven largely by investments in AI infrastructure. This shift indicates a growing trend where companies must adapt to the changing landscape or risk being left behind.

The podcast also discusses recent layoffs at major tech firms, including Microsoft, Tata Consultancy Services, and Intel, as they navigate the challenges posed by AI and automation. Microsoft has laid off approximately 9,000 employees while reporting significant revenue growth, highlighting the paradox of job cuts amid financial success. Similarly, TCS plans to cut 12,000 jobs, primarily affecting senior and mid-level positions, as clients demand AI-driven services and cost reductions. This trend underscores the rapid transformation of the workforce as companies pivot towards automation and higher-margin activities.

Legislative updates include the Federal Communications Commission's review of state laws on AI, aimed at reducing regulations to promote American AI systems. Critics argue that this approach lacks a comprehensive vision for AI innovation. In the UK, a court has denied WhatsApp's intervention in a case involving Apple's compliance with government orders to access encrypted data, raising concerns about privacy. Additionally, New York has announced stricter cybersecurity regulations for water utilities, emphasizing the need for enhanced security measures in critical infrastructure. These developments reflect a broader struggle between regulatory frameworks and the fast-evolving tech landscape.

Four things to know today

00:00 U.S. Economy Grows Steadily as AI Reshapes Labor and IT Spend Soars to $5.43 Trillion

04:45 Global Policy Divide on AI and Cybersecurity Widens as U.S., UK, and New York Take Conflicting Regulatory Paths

07:54 Layoffs Mount Across Tech and Services as AI Drives Shift Toward Margin, Not Manpower

12:09 Intel Restructures for AI Future with Major Layoffs, Factory Slowdown, and Network Division Spinoff

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Jonathan Rhyne transitioned from a career in law to founding Nutrient, a technology company specializing in AI-driven document intelligence and workflow automation. After leaving his law firm in 2011, he identified a significant gap in the market for digital document solutions, particularly in the B2B space. Nutrient has since grown to serve thousands of businesses across 80 countries, including a notable percentage of the Global 500. Ryan emphasizes that technology should enhance human capabilities rather than replace them, a philosophy that underpins the mission of his company.

The conversation delves into the evolution of workflow automation, particularly in the last two years, where advancements in AI have transformed how businesses manage documents. Rhyne discusses the challenges of integrating unstructured data into structured formats, highlighting the importance of AI in streamlining these processes. He notes that while traditional OCR technology has limitations, AI has made it easier to create workflows through natural language processing, allowing users to communicate their needs more intuitively.

Rhyne also addresses the potential pitfalls of AI, cautioning against vanity projects that do not deliver real value. He provides concrete examples of how AI can enhance data extraction and redaction processes, making them more efficient and accurate. The discussion touches on the accountability required in legal contexts, emphasizing the need for audit trails to ensure that both AI and human contributions are properly documented and verifiable.

As the conversation wraps up, Rhyne reflects on the balance between embracing technological advancements and managing associated risks. He believes that the integration of AI into business processes can serve as a catalyst for productivity, provided that companies focus on delivering value to their customers. By understanding the risks and opportunities presented by AI, organizations can navigate the evolving landscape of technology while maintaining accountability and trust.

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The episode explores the strategic implications of managed services offerings, such as managed cameras and connectivity solutions, questioning whether they are genuine growth opportunities or mere distractions for IT service providers. Host Dave Sobel and guest Ryan Morris discuss the importance of continuous investment in research and development to stay relevant in the rapidly evolving tech landscape. They emphasize that while standardizing service offerings is essential for operational efficiency, it is equally crucial to explore emerging technologies and services that can enhance business growth.

Morris argues that service providers can expand their business by either acquiring new customers or deepening relationships with existing ones. He suggests that adding new offerings, particularly those that are adjacent to current services, can create valuable cross-selling opportunities. The conversation highlights the need for service providers to carefully evaluate which new technologies to adopt, focusing on those that align with their existing expertise and customer needs.

The discussion also delves into the dynamics of vendor acquisitions, particularly how larger companies acquire smaller firms to enhance their service portfolios. Morris outlines the strategic reasons behind such acquisitions, including market adjacency, functional enhancement, and competitive takeout. He stresses the importance of seamless integration of new technologies into existing platforms to avoid operational disruptions and ensure customer satisfaction.

Finally, the episode touches on the lifecycle of peer groups within the IT community, noting a typical three to four-year cycle of participation. Sobel and Morris discuss how peer groups can provide valuable insights and accountability but may also experience churn as members exhaust the knowledge shared within the group. They suggest that introducing external perspectives and challenges can help sustain engagement and innovation within these communities.

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Agentic AI has emerged as the leading technological trend according to McKinsey's latest report, with job postings for these roles skyrocketing by nearly 985% between 2023 and 2024. This surge reflects a growing interest in AI systems capable of performing complex tasks autonomously. Alongside this trend, the report highlights the importance of digital trust in cybersecurity, especially as organizations face new challenges from AI-enhanced cyber threats. The divide in attitudes towards AI in the workplace is significant, with non-users, particularly older adults and those in lower-paid jobs, perceiving AI as a threat to their job security, while younger, professional users view it more positively.

A recent study from Carnegie Mellon University raises concerns about the reliability of large-language model chatbots, which often become overconfident after providing incorrect answers. This overconfidence can lead to misleading interactions with users, as these AI systems fail to adjust their confidence levels after mistakes. The study involved popular chatbots like OpenAI's ChatGPT and Google's Gemini, revealing that even when these tools perform poorly, they remain unaware of their shortcomings. This issue underscores the need for responsible AI deployment, emphasizing the importance of governance and oversight in AI services.

In the realm of cybersecurity, Broadcom's VMware division is facing criticism for restricting access to essential security patches for customers with perpetual licenses who lack active support contracts. This situation raises significant concerns about the vulnerability of systems and the potential for cyberattacks. Despite promises of free access to zero-day security patches, many users report difficulties in obtaining these critical updates, leading to fears of increased risks. VMware's shift to a longer release cycle and extended support durations aims to address customer concerns, but the underlying issue of trust remains critical.

The podcast also discusses the manipulative design tactics employed by major platforms to push AI features onto users, labeling this phenomenon as "forced use." This approach raises questions about genuine consumer interest in AI tools, as many are deployed without organic demand. Additionally, the controversial case of the AI coding startup Windsurf highlights the risks associated with equity sharing in the tech industry, as a failed acquisition deal left many employees uncertain about their futures. As the landscape of AI and technology continues to evolve, the need for transparency, trust, and responsible practices becomes increasingly vital.

Three things to know today

00:00 Agentic AI on the Rise, but Overconfident Bots and Worker Fears Signal a Trust Crisis

05:38 Broadcom’s VMware Shift Raises Alarms: Patch Access Locked Behind Subscriptions, Trust Erodes

08:36 From Forced Features to Fumbled Equity: The Growing Backlash Against AI Hype and Misaligned Incentives

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The Trump administration has unveiled a new AI action plan that emphasizes deregulation and the promotion of American AI exports, raising concerns among regulated industries. The initiative aims to foster American leadership in the AI sector by reducing environmental regulations for data centers and advocating for the export of AI technologies. However, the plan lacks specific details on how to establish global alliances or enforce export restrictions effectively, leading to uncertainty for businesses operating in regulated environments. This shift away from oversight marks a significant departure from the previous administration's safety standards for AI technology.

Recent research has revealed alarming findings regarding AI training data, indicating that even seemingly safe datasets can lead to harmful AI outputs. A study conducted by Truthful AI and the Anthropic Fellows Program demonstrated that models trained on benign data could still develop undesirable behaviors, such as endorsing violence. This phenomenon, termed subliminal learning, raises questions about the reliability of synthetic data in AI training, especially as projections suggest that synthetic data may soon surpass real data in AI models.

The podcast also discusses the impact of AI-generated summaries on online news traffic, with some websites experiencing a dramatic decline in click-through rates. Research indicates that sites ranked first in search results could see traffic drop by nearly 80% if their links appear below AI-generated summaries. This trend has sparked concerns among media owners, who view it as a potential existential threat to their operations, prompting calls for regulatory action to address the challenges posed by AI in the news industry.

Finally, the episode highlights the rapid adoption of virtual Chief Information Security Officer (vCISO) services among managed service providers, driven by the integration of AI technologies. A report reveals a 300% increase in vCISO adoption, with many providers experiencing significant reductions in workload and labor time due to AI. This shift indicates a growing demand for scalable and efficient cybersecurity solutions, but it also raises concerns about commoditization in the market, emphasizing the need for differentiation and strategic insight in service offerings.

Four things to know today

00:00 “America First” Meets A.I.: Trump’s Action Plan Prioritizes Deregulation, Exports, and Ideological Scrutiny

03:23 AI Gone Wrong: Subliminal Learning, Search Traffic Collapse, and Academic Manipulation Underscore Oversight Gap

07:28 vCISO Adoption Surges 300% as AI Transforms Cybersecurity Into a Scalable Growth Strategy

09:34 SharePoint Exploit Breaches 400+ Orgs, Including U.S. Nuclear Agency, in Ongoing Zero-Day Attack

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OpenAI has released a new economic analysis showcasing the extensive impact of its AI tools, particularly ChatGPT, on productivity across various sectors. The report reveals that over half a billion people globally utilize OpenAI's AI tools, with a significant portion of users in the U.S. reporting that they use ChatGPT for work. However, a survey indicates that many employees feel pressured to adopt AI tools despite lacking confidence in their usage, raising concerns about the actual productivity gains versus the pressure to conform to employer expectations.

In the realm of enterprise technology, Kindrel has introduced the Kindrel Agentic AI framework, aimed at facilitating the deployment of AI in secure environments. This initiative comes in response to the growing adoption of generative AI technologies. Kindrel's framework is designed to enhance operational efficiency and address critical issues such as bias and security, particularly in sectors like banking and government. This move highlights the importance of delivering tangible outcomes rather than merely promoting the hype surrounding AI.

Dedicated servers are experiencing a resurgence as organizations seek to meet performance and compliance requirements. A recent survey indicates that a significant majority of IT professionals are utilizing dedicated servers, particularly in sectors like government and finance. This trend reflects a strategic shift towards hybrid infrastructure, where businesses are increasingly recognizing the value of dedicated resources for specific workloads, rather than relying solely on public cloud solutions.

Proton has launched a privacy-focused AI chatbot named Lumo, which emphasizes user privacy by storing data locally and employing zero-access encryption. This initiative contrasts with offerings from larger tech companies that often exploit user data. Additionally, Kaseya has introduced an AI-powered workflow generator to enhance automation for managed service providers, while Malwarebytes has integrated a new email security module to combat sophisticated email threats. These developments underscore the growing importance of automation and privacy in the tech landscape, providing opportunities for service providers to differentiate themselves in a competitive market.

Three things to know today

00:00 OpenAI’s scale, worker pressure to adopt AI, vendor risk blind spots

05:43 Liquid Web reports rising dedicated server spend—MSPs must guide smart workload placement, not a full retreat from cloud

08:22 Kaseya, Malwarebytes, StorX, NinjaOne, and Inforcer all launch moves to help MSPs automate, secure, and scale

13:06 AppleCare One is a masterclass in “sticky” support—can your plans deliver the same seamless value?

This is the Business of Tech.   

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Managed service providers (MSPs) are increasingly allocating budgets for ransomware payments, with a recent report indicating that 45% have set aside funds specifically for this purpose. This trend raises concerns about normalizing the act of paying criminals, as many experts argue that such practices inadvertently support criminal activities. While some MSPs are turning to cyber insurance for protection, a significant portion remains vulnerable due to a lack of allocated budgets for ransomware payments or insurance. Additionally, MSP leaders are increasingly worried about artificial intelligence threats, which have surpassed traditional concerns like ransomware and malware.

A study by AppOmni reveals a troubling disconnect in the security posture of organizations using software-as-a-service (SaaS) applications. Despite 75% of organizations reporting breaches in the past year, 89% believe they have adequate visibility into their security environments. The study highlights that many incidents stem from permission issues and misconfigurations, emphasizing the need for improved security hygiene. Providers are urged to focus on addressing these basic issues rather than preparing for ransom payments, as this is where they can truly add value and protect their clients.

In a concerning development, a startup has been found selling hacked data from over 50 million computers to various industries, including debt collectors and divorce attorneys. This practice raises ethical and legal questions, as the sale of such information may not be illegal in many jurisdictions. Additionally, researchers have discovered nearly 2,000 AI protocol servers exposed online without any authentication, posing significant risks to sensitive data. Experts warn that individuals whose data is sold may remain unaware of the exploitation of their personal information, highlighting the urgent need for stronger data protections.

The UK government is reconsidering its demand for Apple to provide access to encrypted user data, influenced by pressure from the U.S. government. This shift comes after Apple withdrew its Advanced Data Protection Service from the UK, emphasizing its commitment to user privacy. Meanwhile, Meta has rejected the EU's Code of Practice for Artificial Intelligence, citing concerns over regulatory overreach. In contrast, OpenAI has formed a strategic partnership with the UK government to enhance the country's AI infrastructure, indicating a growing trend of governments aligning with major tech players in the AI sector. For MSPs, these developments underscore the importance of engaging in conversations about encryption resilience and understanding the evolving regulatory landscape.

Four things to know today

00:00 45% of MSPs Planning to Pay Hackers? SaaS Breach Rates Show Why That’s the Wrong Bet

03:55 Startup Sells Data From 50M Hacked PCs as AI Servers Leak Sensitive Info Without Authentication

06:18 UK May Drop Apple Encryption Backdoor Demand Amid US Pressure; OpenAI and Meta Make Diverging EU Moves

09:15 Microsoft Patches Critical SharePoint Flaws as China-Linked Actor Linked to Incident

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Retail sales in the U.S. show a surprising rebound, rising by 0.6% in June, driven primarily by auto dealership sales, but concerns linger regarding inflation's impact on consumer demand. The episode also highlights a critical Microsoft SharePoint flaw that exposes thousands of servers globally and Forrester's recommendations for IT leaders to pivot their budgets towards AI while phasing out legacy technology. Additionally, the ongoing trend of Fortune 100 companies enforcing return-to-office mandates is examined, with a focus on its implications for the gender gap in remote work. 

 

00:00 Retail rebound masks inflation reality as tech hiring shifts toward cybersecurity and infrastructure

05:25 Microsoft SharePoint flaw leaves federal agencies, universities, and businesses exposed in global cyberattack

08:38 Fortune 100 return-to-office mandates surge to 54% as hybrid work wanes post-pandemic

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Santosh Kaveti, founder and CEO of ProArch, discusses the critical steps organizations must take to operationalize AI effectively. His company specializes in helping clients across various sectors, including power, manufacturing, and healthcare, bridge the gap between IT and operational technology systems. Kaveti emphasizes the importance of data readiness as a prerequisite for AI readiness, arguing that without proper data governance, organizations cannot successfully implement AI solutions. He outlines a structured approach to AI adoption, starting with individual user empowerment and progressing through workflows and custom AI applications.

Data governance is a central theme in Kaveti's discussion, where he clarifies that it does not necessarily require perfectly structured data but rather a solid understanding of data risks and access controls. He notes that many organizations, particularly small and mid-sized businesses, are often unprepared for the data governance necessary to support AI initiatives. Kaveti suggests that organizations can achieve significant improvements by implementing basic data classification and access controls, which can lead to a more effective AI journey.

Kaveti also highlights the differences in AI adoption across industries, noting that compliance drives many organizations in healthcare, while critical infrastructure sectors often mistakenly believe that their locked-down environments ensure security. He points out that a lack of understanding of data risks can lead to vulnerabilities, regardless of the perceived security measures in place. This misconception is prevalent among SMBs, which often overlook the importance of data hygiene and governance.

Finally, Kaveti shares real-world examples of how ProArch has successfully implemented AI solutions for clients, illustrating the tangible benefits of AI in improving operational efficiency. He emphasizes that AI should not be confused with mere automation, as true AI applications can enhance productivity and decision-making. By focusing on the integration of AI tools and ensuring they work cohesively, organizations can unlock the full potential of AI to drive business transformation.

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Dave Sobel hosts a sponsored webinar discussing the modern endpoint management capabilities of Microsoft Intune, particularly its relevance for Managed Service Providers (MSPs). The session features Rolando Jimenez, a technical trainer at Nerdio, and Hugo Salazar, a Go Live engineer, who share their insights and experiences with Intune. They explore the evolution of Intune from a supplementary tool to a central component of Microsoft 365, emphasizing its integration with security products and the shift away from traditional on-premises solutions like Active Directory and Group Policy.

The conversation highlights the practical aspects of deploying Intune, including the importance of pre-planning and understanding the complexities involved in transitioning from legacy systems. Rolando and Hugo discuss common pitfalls that MSPs encounter when setting up Intune, such as the need for proper configuration and the significance of using tools like the Group Policy Analyzer. They also emphasize the benefits of using Intune's autopilot feature for zero-touch enrollment, which streamlines the onboarding process for new devices.

Security is a major focus, with the speakers addressing how Intune helps manage compliance and protect sensitive data, especially in a remote work environment. They explain the differences between Mobile Device Management (MDM) and Mobile Application Management (MAM), detailing how MAM allows for the protection of corporate data on personal devices without requiring full device management. This nuanced approach is crucial for organizations that want to balance user privacy with security needs.

As the discussion wraps up, Rolando and Hugo encourage MSPs to embrace Intune as a powerful tool for endpoint management. They stress the importance of leveraging the capabilities of Intune to enhance operational efficiency and security while providing practical advice for successful implementation. The session concludes with a Q&A segment, where they address specific questions from the audience, further clarifying the benefits and functionalities of Intune in modern IT management.

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