Business of Tech: Daily 10-Minute IT Services Insights

AI in SMBs, Washington's New Tech Tax, and Major Cybersecurity Breaches: What You Need to Know

May 22, 2025

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Small businesses are increasingly adopting artificial intelligence (AI) technologies, particularly in personalized email marketing, which has become a primary channel for nearly 19% of small to mid-sized businesses in 2025. Despite the growing interest, many businesses face challenges in implementation, with 35% citing a lack of familiarity with AI as a significant barrier. A recent survey indicates that while 38% of small and medium-sized businesses are utilizing AI across various functions, the actual productivity gains from AI investments, such as chatbots, have been minimal, with only a 3% time savings reported. This discrepancy highlights the gap between the hype surrounding AI and its real-world applications.

Legislative developments are also shaping the tech landscape, with Washington State introducing a new sales tax on technology and digital services to address a significant budget shortfall. This tax, expected to generate billions over the next few years, has raised concerns among local tech industry leaders about its potential impact on competitiveness. Additionally, Congress is considering a moratorium on state regulations regarding AI, which could undermine privacy protections established by states. Critics argue that this could hinder essential consumer safeguards, while proponents believe a unified regulatory framework is necessary for innovation.

Cybersecurity remains a pressing issue, with notable incidents highlighting vulnerabilities in the sector. Delta Airlines is pursuing legal action against cybersecurity firm CrowdStrike following a massive IT failure that led to significant flight cancellations and financial losses. Meanwhile, a new malware called LumaStealer has infected hundreds of thousands of devices, prompting a coordinated response from Microsoft and Europol. The FBI has also issued warnings about AI-generated voice scams, which pose a growing threat to trust-based systems like email and voice approvals.

The podcast emphasizes the importance of resilience and responsibility in cybersecurity, urging IT service providers to focus on trust governance rather than merely managing technology. As AI continues to evolve, the need for systematic validation of communications and relationships becomes critical. The discussion underscores the necessity for businesses to navigate the complexities of AI adoption and cybersecurity effectively, ensuring that they are not only keeping pace with technological advancements but also safeguarding their operations and customer trust.

00:00 AI’s Real Value Lies in Utility, Not Innovation, Say Analysts Tracking SMB Adoption Trends+

06:36 U.S. Tech Policy in Flux: More States Tax IT, Feds Push AI Preemption, and Data Privacy Falters

11:34 Cybersecurity’s Trust Gap Widens: Delta Can Sue CrowdStrike, AI Voice Scams Rise, and North Korea Hacks U.S. Firms

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