Business of Tech: Daily 10-Minute IT Services Insights Generative AI, Microsoft Updates, Gen Z Consulting Dilemma, AI Overbuilding, Vision Pro Review
Generative AI is currently facing a downturn, with Gartner placing it at the peak of inflated expectations and urging organizations to assess ROI and maturity before deployment. The hype cycle identifies four emerging technology themes, including autonomous AI, total experience, and human-centric security. Despite projections of generative AI accounting for over 40% of the total AI industry market size by 2030, concerns about profitability due to high development costs remain. However, RBC analysts anticipate that revenue from AI-powered software could still increase, potentially offsetting lower profit margins.
Microsoft issues warnings to partners regarding API migration deadlines and the implementation of multi-factor authentication for Azure customers. The company also updates its services agreement, emphasizing that AI services are not substitutes for professional advice and outlining data extraction restrictions. Additionally, Microsoft announces the return of the Windows Recall AI feature in October for Windows Insider users after addressing security concerns. The feature, which captures screenshots at short intervals, will prioritize security as a top priority.
Consulting firms are facing a dilemma with Gen Z consultants viewing consulting as a temporary stepping stone rather than a long-term career due to high-pressure work environments and a desire for more meaningful engagement. The shift in focus from benefits to work-life balance reflects a broader trend among this generation prioritizing personal passion in their careers. Meanwhile, major tech companies are making significant capital investments in AI infrastructure, potentially leading to an overbuilding trend. While the risk of overbuilding is acknowledged, companies prioritize avoiding underinvestment, with concentrated investments among a few major players mitigating some risks.
The Apple Vision Pro, after six months, is primarily seen as a VR headset with limited AR capabilities, excelling in entertainment but facing drawbacks such as weight, comfort, and high price. Developer investment remains low, and widespread adoption remains uncertain, despite influencing competitors to reconsider their strategies. The episode also highlights the importance of building career paths in consulting and the challenges faced by head-mounted devices in becoming mainstream. Overall, the episode delves into the current state of generative AI, Microsoft's updates and warnings, consulting industry trends, and the impact of major tech companies' investments in AI infrastructure.
Four things to know today
00:00 Generative AI Nears the Trough of Disillusionment: Gartner Warns of ROI and Maturity Challenges
04:30 Microsoft Sets September 30 Deadline for API Migration and Updates Services Agreement for 2024
06:18 Windows Recall AI Feature Returns: Microsoft Prepares October Preview After Security Delays
07:42 Consulting’s Gen Z Dilemma: Is the Industry Losing Its Long-Term Appeal?
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