Business of Tech: Daily 10-Minute IT Services Insights

AI for MSPs: OpenAI's Code Red and the Need for Data Governance in IT Services

Dec 2, 2025

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OpenAI has declared a "code red" as it faces intensified competition from companies like Google and Anthropic, prompting a shift in focus towards enhancing the capabilities of its ChatGPT platform. CEO Sam Altman has urged staff to prioritize improvements in speed, reliability, and personalization, delaying other initiatives such as advertising. This strategic pivot comes as OpenAI also announced an ownership stake in Thrive Holdings, a company that acquires and transforms service firms, particularly in accounting and IT, with the aim of integrating AI to improve operational efficiency.

A recent study by Stebo Systems highlights a significant gap between Chief Information Officers' (CIOs) perceptions of their organizations' AI readiness and the actual state of their data management. While 91% of U.S. business leaders recognize the importance of customer data management, only 31% fully trust their data. The study reveals that 76% of organizations still rely on side spreadsheets to address data issues, indicating a lack of centralized data governance. This fragmentation leads to wasted time and lost revenue, underscoring the need for robust data governance frameworks as organizations aim to adopt AI-driven services.

The episode also discusses the implications of surveillance AI, particularly a model developed by Securis Technologies that predicts and prevents crimes among inmates using data from prison phone calls. While the company claims success in disrupting criminal activities, concerns about civil liberties and the ethical use of such data have been raised. This situation serves as a cautionary tale for IT service providers, emphasizing the importance of establishing governance frameworks to mitigate risks associated with AI deployment in business environments.

For Managed Service Providers (MSPs) and IT leaders, the key takeaway is the necessity of controlling their own AI strategies. As OpenAI integrates vertically into the service industry, independent MSPs must differentiate themselves by building their own AI capabilities and data governance practices. The episode stresses that without a solid data foundation, AI initiatives are likely to fail, and MSPs should focus on enhancing data quality and governance to ensure successful AI implementations and maintain client trust.

Four things to know today

00:00 OpenAI Pauses Ads Amid “Code Red” While Buying Into MSP Rollup, Raising Platform–Competitor Concerns

05:16 Leaders Say They’re Ready for AI — but Their Data Still Lives in Side Spreadsheets

07:49 Securus Call-Monitoring AI Shows How Predictive Surveillance Could Spill Into Workplace Tools

10:27 New AI Helpers and Simple M365 Assessments Raise the Bar for Modern IT Providers

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