Business of Tech: Daily 10-Minute IT Services Insights

The Pentagon has officially mandated the Cybersecurity Maturity Model Certification (CMMC) for defense contracts, transitioning from a policy framework to enforceable requirements. This regulation, set to take effect on November 10, 2025, requires contractors to meet specific cybersecurity benchmarks based on the sensitivity of the information they handle. With three certification levels, the CMMC aims to ensure that defense-focused providers adhere to stringent cybersecurity standards. This shift presents both opportunities and challenges for managed service providers (MSPs), as some small and medium-sized businesses may opt out of defense contracts due to compliance costs.In a significant development, researchers from New York University have demonstrated the feasibility of AI-powered ransomware, dubbed Ransomware 3.0. This proof-of-concept malware utilizes advanced large-language models to create targeted attacks, making it more difficult to detect and defend against. The incident underscores the growing trend of cybercriminals leveraging AI tools, raising concerns about the potential for real-world applications of such technology. Meanwhile, Microsoft has made multi-factor authentication (MFA) mandatory for Azure portal sign-ins, aiming to enhance cybersecurity and reduce account compromise risks.The podcast also highlights KnowBefore's new white paper on human risk management in cybersecurity, emphasizing a people-centric approach to bolster security culture. Additionally, Secret Double Octopus has launched a program to help MSPs eliminate passwords entirely, moving beyond traditional MFA solutions. Ignite has introduced AI agents tailored for the architecture, engineering, and construction sectors, streamlining documentation tasks and reducing project risks. Sentinel-1's acquisition of Observo AI aims to enhance security operations by improving data management capabilities.Apple recently unveiled updates to its operating systems and new hardware, including the iPhone 17, which features significant security enhancements like Memory Integrity Enforcement. The company is shifting to a year-based version numbering system for its OS updates, aiming for consistency across its ecosystem. While Apple introduced exciting new features, concerns linger about its AI capabilities compared to competitors like Google and Samsung. The podcast concludes by emphasizing the importance of security improvements and the potential support challenges that IT leaders may face as clients compare Apple devices with Android alternatives. Four things to know today 00:00 Pentagon Locks In CMMC Enforcement: Defense Contractors Must Certify or Exit by 202503:00 From AI-Powered Attacks to Forced MFA: Security Baselines Are Moving, and Providers Must Keep Up05:29 From Training to Passwordless to Vertical AI: Vendor Announcements Underscore Shift to Client-Focused Outcomes08:18 Apple’s 2025 Launch Balances Security and Hardware Innovation While Downplaying AI This is the Business of Tech.    Supported by:  https://scalepad.com/dave/ https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship   All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

OpenAI has projected a staggering $115 billion cash burn by 2029, raising significant concerns about the sustainability of the AI model market. Despite an anticipated revenue of approximately $13 billion this year, driven largely by ChatGPT, the company faces escalating costs that could lead to a cash burn exceeding $8 billion this year alone. This financial instability poses risks not only to OpenAI but also to its customers, who may find themselves affected by sudden changes in pricing, features, or business models as the company navigates its financial challenges.Klarna's recent experience serves as a cautionary tale about the pitfalls of over-relying on AI for customer support. After initially replacing 700 human agents with AI, the company faced a 17% default rate on loans and customer dissatisfaction, prompting a reversal of its strategy. As Klarna prepares for its stock market debut, it struggles to reintegrate human staff into its support system, highlighting the chaos that can ensue when companies prioritize AI over human interaction.The podcast also discusses the growing trend of shadow AI, where employees adopt consumer-grade AI tools independently due to a lack of official resources from their employers. This grassroots movement, while potentially increasing productivity, raises concerns about compliance and security. Experts emphasize the importance of establishing governance and policies around AI use to mitigate risks associated with unregulated adoption.Finally, a call from cognitive scientists and AI researchers urges academic institutions to critically assess the integration of AI technologies. They warn that uncritical adoption could undermine students' critical thinking skills and de-skill the future workforce. This sentiment reflects a broader concern within the tech industry about the need for a balanced approach to AI, ensuring that advancements genuinely enhance outcomes rather than simply serve as marketing hype. Four things to know today 00:00 OpenAI’s Soaring Costs, Faulty “Reasoning,” and Legal Battles Expose Fragility of AI Model Market06:12 Klarna’s AI Collapse and Rising “Shadow AI” Adoption Show the Risks of Unmanaged Automation08:33 Academics Warn Against Uncritical AI Adoption, Citing Risks to Critical Thinking10:36 From MSP360 to Google to Syncro, New AI and Security Launches Offer Convenience—But With Hidden Costs This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship https://scalepad.com/dave/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

The U.S. job market is experiencing a significant slowdown, with only 22,000 jobs added in August, marking the first net job loss since December 2020. The unemployment rate has slightly increased to 4.3%, indicating a decline in hiring and job seeker enthusiasm. Despite these challenges, the adoption of artificial intelligence (AI) in the labor market is not leading to widespread job losses. A recent survey revealed that only 1% of service firms reported job cuts due to AI, while many companies are retraining existing employees instead of laying them off. The tech sector, however, is seeing a rise in job postings requiring AI skills, reflecting a shift in hiring practices.Small businesses are facing increasing challenges as confidence in their marketing efforts declines, despite higher investments. A report indicates that only 18% of small and mid-sized businesses are very confident in their marketing outcomes, down from 27% the previous year. Many businesses are turning to AI tools and email marketing, but they struggle with limited time for marketing activities. Economic pressures, including rising costs and tariffs, are also impacting operational strategies, leading to concerns about the effectiveness of marketing investments.Tariffs are causing disruptions in tech pricing and delaying PC upgrades, with the removal of the de minimis exemption leading to increased costs for imported goods. This has resulted in price hikes for various products, including luxury items and personal computers. Despite the impending end of support for Windows 10, many businesses are hesitant to upgrade to Windows 11, opting instead for extended support packages. The rise of AI-enabled personal computers is notable, but the associated costs due to tariffs are making these upgrades more challenging for businesses.Broadcom is consolidating its control over VMware, transitioning a significant portion of its customers to subscription-based services. This move is part of a broader strategy to enhance the VMware Cloud Foundation offerings. Meanwhile, a new integration between DarcyIQ and Kaseya Autotask aims to improve operational efficiency for managed service providers by streamlining ticket and project management through natural language conversations. This highlights the need for smarter tools in the industry, as third-party solutions are increasingly filling gaps left by platform vendors. Four things to know today 00:00 U.S. Job Market Stalls, but AI Isn’t the Culprit—Structural Shifts and RTO Mandates Drive Change05:58 SMBs Struggle with Marketing Confidence, Tariff Impacts, and Windows 10 Migration as AI PCs Rise09:59 Broadcom Tightens VMware Grip with Subscription Push, Locking in Top Clients and Leaving Others Behind12:05 Ecosystem Innovation Outsmarts Kaseya as DarcyIQ Delivers Natural Language Interface for Autotask This is the Business of Tech.     Supported by:  https://getnerdio.com/   All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Ephraim Ebstein, founder and CEO of FIT Solutions, has successfully built two national IT companies and is now focused on transforming technology into a growth engine for businesses. His organization specializes in integrating artificial intelligence (AI) into various sectors, particularly in the realm of customer service and operational efficiency. With a revenue of $30 million last year and projections of $38 million this year, FIT Solutions has established itself as a leader in the IT services industry, emphasizing organic growth without external funding.Ebstein discusses the increasing demand for AI integration among business owners, who are eager to reduce labor costs and enhance revenue. He notes that while many companies are exploring AI, there is often confusion about its practical applications. FIT Solutions has carved out a niche in AI integration, focusing on creating AI employees that can handle tasks traditionally performed by humans, such as customer service and sales. This approach has proven to be more straightforward and effective than selling traditional IT services, as businesses are keen to adopt AI solutions that can streamline operations.One of the standout implementations discussed is the AI concierge service for boutique hotels. This service allows guests to interact with a virtual concierge via text, providing personalized assistance and recommendations without the need for extensive human staff. The AI employee, named Brooklyn, engages with guests, answers questions, and even coordinates tasks like housekeeping requests. This innovative solution not only enhances the guest experience but also significantly reduces labor costs for hotel operators.Ebstein emphasizes the importance of preparing businesses for AI integration, which involves understanding their unique needs and ensuring that the necessary data is accessible. He highlights the complexity of creating effective AI solutions, which often require multiple integrations and extensive training. As businesses increasingly recognize the potential of AI to replace or augment staff, Epstein's insights provide valuable guidance on navigating this evolving landscape and maximizing the return on investment in AI technologies.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Seth Robinson, Vice President of Industry Research at CompTIA, joins host Dave Sobel to discuss the intersection of cloud computing and artificial intelligence (AI). They explore the notion that while there is a prevailing narrative about moving from the cloud era to the AI era, many organizations may not have fully optimized their cloud workflows. Robinson emphasizes that the end of the cloud era is not as clear-cut as it seems, as companies continue to grapple with the complexities of cloud adoption and the need for ongoing optimization.The conversation delves into the challenges organizations face in adopting new technologies, particularly AI. Robinson points out that while many companies are experimenting with AI tools, they often struggle to integrate these technologies into their workflows effectively. The discussion highlights the importance of understanding the lessons learned from cloud adoption, especially regarding cybersecurity and the need for a cohesive strategy that aligns technology evaluation with security considerations.As they transition into the AI era, Robinson warns that companies may repeat past mistakes if they do not learn from their cloud experiences. He stresses the significance of transforming workflows and employee behavior to fully leverage AI's potential. The conversation also touches on the emerging trend of outcome-based pricing models in the SaaS space, indicating a shift in how companies evaluate the value of technology investments.Robinson and Sobel conclude by discussing the complexities of measuring risk in AI implementations and the need for organizations to balance innovation with caution. They emphasize that while AI has the potential to enhance productivity, companies must navigate the challenges of scaling these technologies across their operations. The episode provides valuable insights into the current state of cloud and AI adoption, urging businesses to remain vigilant and strategic in their technology investments.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Intel's recent agreement with the U.S. government includes a controversial clause that allows the federal government to acquire an additional 5% stake in the company if it loses control of its foundry business. This unusual provision has raised concerns among stakeholders, including investors and employees, as it signifies a level of government intervention in corporate governance that is not typically seen in the U.S. The deal is still being finalized, and the implications for Intel's operations and the broader tech industry remain to be seen.A recent report highlights that Gen Z, despite being digital natives, exhibits poorer cybersecurity practices compared to baby boomers. Only 30% of Gen Z regularly change their passwords, and a mere 36% use antivirus software. This generation's trust in technology is evident, with 18% comfortable allowing AI to act on their behalf. However, the report also notes that 91% of Gen Z believes data security training should be a workplace priority, indicating a desire for improvement in their cybersecurity habits.The threat landscape is evolving, with the emergence of AI-powered ransomware, specifically a strain named PromptLock, which is currently under development. This ransomware utilizes AI to generate scripts for data exfiltration and encryption in real time, posing significant challenges for cybersecurity defenses. Additionally, the ransomware gang Storm-0501 has shifted its focus to cloud data, exploiting accounts without multi-factor authentication to exfiltrate sensitive information and demand ransoms through platforms like Microsoft Teams.The podcast also discusses the cooling hype surrounding AI technologies, particularly following the underwhelming launch of GPT-5. Only 5% of companies have successfully converted AI into revenue, leading to a market correction in the tech sector. As managed service providers increasingly adopt AI tools, questions arise about the long-term implications for workforce development and the potential risks associated with over-investing in emerging technologies. The conversation emphasizes the need for MSPs to focus on governance, compliance, and responsible use of AI while navigating the evolving landscape of cybersecurity and technology. Four things to know today 00:00 Gen Z Lags Boomers in Basic Cybersecurity Habits, GWI Report Finds05:07 Auvik Introduces Smart Alert Suppression to Cut False Alarms in IT Management06:26 White House Confirms Intel Agreement Still in Flux as Commerce Finalizes Terms07:44 AI’s Growing Pains—Revenue Gaps, Job Impacts, and MSP Opportunities Collide  This is the Business of Tech.     Supported by:  https://scalepad.com/dave/ https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

The managed services provider (MSP) market is experiencing a paradoxical trend where revenue is increasing while the number of providers is decreasing. According to Canalys data, global managed services revenue surpassed half a trillion dollars in 2024, reflecting a year-over-year growth of 9.7%. However, the number of channel partners has slightly declined by 0.6%, with large MSPs rapidly acquiring smaller ones. This consolidation trend has led to a significant shift in the market dynamics, where smaller MSPs struggle to compete against larger firms that possess superior resources and pricing power.To survive in this competitive landscape, smaller MSPs must adopt focused strategies, targeting specific customer segments or industries. By doing so, they can achieve higher profit margins, with specialized MSPs reporting EBITDA percentages between 15% to 30%, compared to just 7% for those lacking focus. The article emphasizes that smaller MSPs have several options: they can sell to larger firms, acquire smaller peers, focus on niche markets, or leverage partnerships to remain competitive. The reality is that the middle tier of MSPs is rapidly disappearing, and those who attempt to serve everyone may find themselves at a disadvantage.In addition to the MSP market dynamics, the podcast discusses recent legislative developments, including Michigan's new laws addressing deepfakes, which make it illegal to create AI-generated sexual imagery without consent. This reflects a growing trend across the U.S. to combat nonconsensual abuse imagery, with most states now having similar laws. Furthermore, the U.S. Treasury has imposed sanctions on individuals and entities linked to North Korea's illicit IT worker schemes, highlighting the security risks posed by fraudulent practices in the tech industry.The episode also covers the latest advancements in AI-powered security solutions from various vendors, including Thrive, Addigy, Arctic Wolf, and Acronis. These companies are rolling out new services and products designed to enhance security operations and protect data. The overarching theme is that as technology evolves, the risks associated with it are also increasing, and IT service providers must adapt to these changes by offering value-added services that help clients navigate the complexities of compliance and security in a rapidly changing environment. Four things to know today 00:00 MSP Market Expands to $500B as Provider Count Shrinks Amid Rapid Consolidation04:10 From Abuse Imagery to Supply Chain Threats, Regulation Struggles to Keep Up With Emerging Risks07:45 AI Everywhere: Thrive, Security Vendors, OpenAI, and Microsoft Redefine Service Provider Playbook12:39 D&H and Nutanix Growth Signals Services-Led Future as Distributors and Vendors Push Into MSP Territory This is the Business of Tech.     Supported by:  https://scalepad.com/dave/ https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship   All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Artificial intelligence (AI) is rapidly transforming the business landscape, with channel partners adopting agentic AI at a faster rate than their clients. A recent survey indicates that while only 8.3% of partners and 4.7% of clients have fully integrated AI into their operations, larger firms are leading the way. Security and compliance concerns, along with budget constraints, are significant barriers for smaller firms. Additionally, a study reveals that AI is influencing human speech patterns, with many workers using AI tools without proper training, leading to a culture of secrecy around AI usage in the workplace.Taco Bell is reassessing its reliance on AI in drive-thru locations after mixed results, including instances of customers attempting to bypass the system. The company is considering the effectiveness of human operators during peak hours. Meanwhile, research from Stanford University highlights a concerning trend: entry-level jobs are disappearing, particularly for younger workers in roles easily automated by AI. This decline in employment for those aged 22 to 25 raises questions about the future of job opportunities in an increasingly automated world.In the tech industry, Apple has launched an AI chatbot named AZA-ASA for its retail employees, focusing on enhancing internal support rather than customer-facing applications. Google has introduced a new image model for its Gemini chatbot, aiming to improve user experience and compete with OpenAI's tools. Microsoft has also made strides by developing its own voice models, moving away from collaboration with OpenAI. These developments reflect a broader trend of companies prioritizing internal applications and refining their AI offerings to better serve their needs.A recent ruling has deemed Google a monopoly but has not mandated significant changes, allowing the company to maintain its key assets like Chrome and Android. Critics argue that the remedies are insufficient to alter Google's monopolistic behavior. As the tech landscape evolves, businesses must navigate the complexities of AI integration and the implications of regulatory decisions. The ongoing developments in AI and its impact on employment and business operations underscore the need for strategic planning and adaptation in a rapidly changing environment. Three things to know today 00:00 Channel Partners Race Ahead in AI Adoption as Clients Lag, Employees Hide Usage, and Governance Trails06:18 AI Promises Efficiency but Delivers Messy Customer Experiences and Fewer Early-Career Roles09:44 Apple Bets on Employees, Google on Trustworthy Images, Microsoft on Voice Autonomy13:54 Judge Declares Google a Monopoly but Stops Short of Breakup, Leaving Core Business Model Intact This is the Business of Tech.    Supported by:  https://timezest.com/mspradio/ https://getflexpoint.com/msp-radio/  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Gartner predicts a significant shift in the adoption of artificial intelligence (AI) within enterprise applications, forecasting that by 2026, 40% of these applications will feature task-specific AI agents. This marks a dramatic increase from less than 5% in 2025, with AI expected to drive around 30% of enterprise application software revenue by 2035. Concurrently, AI-enabled personal computers are projected to dominate the global PC market, claiming over 50% by 2026. Despite market challenges such as high costs and security concerns, businesses are increasingly investing in AI technologies, although consumer sentiment remains cautious, with many waiting for price reductions before making purchases.The podcast also discusses the evolving landscape of AI adoption among small to mid-market businesses. A survey by Techaisle reveals that these companies are prioritizing strategic consulting over mere tool acquisition, seeking comprehensive services that encompass the entire lifecycle of AI implementation. This shift indicates a maturation of the AI services market, as organizations focus on responsible AI use and tailored solutions that address their unique operational needs. However, Gene Marks highlights that many small business owners are still in the experimental phase, using AI tools like chatbots for basic tasks rather than fully integrating AI into their operations.Earnings reports from major tech companies such as NVIDIA, Dell, HP, and CrowdStrike reveal a mixed picture regarding AI's impact on their financial performance. NVIDIA reported substantial revenue growth but faced concerns about an AI bubble and geopolitical tensions affecting its market. Dell's earnings exceeded expectations, but its forecast fell short, while HP noted that a quarter of its PC sales were AI-enabled. CrowdStrike, on the other hand, struggled with a disappointing revenue outlook amid ongoing challenges, including litigation related to an IT outage.The episode concludes with a sobering discussion about the darker implications of AI, highlighting a tragic case where a former Yahoo executive, influenced by AI interactions, committed murder and suicide. This incident raises urgent questions about the psychological risks associated with AI, particularly for vulnerable users. The podcast emphasizes the importance of IT providers in establishing guardrails and policies to ensure safe AI adoption, underscoring that the difference between responsible use and dangerous misuse lies in proper training and oversight. Four things to know today 00:00 Enterprises Race Ahead on AI Agents and PCs, While SMBs Struggle With Strategy and ROI 06:14 Big Tech Shouts “AI,” Wall Street Shrugs — What It Means for SMBs and IT Providers 11:19 Rev.io Enters PSA Market With All-in-One MSP Platform, Betting on AI and Billing Expertise 13:30 Chatbot-Linked Killing Highlights Dark Side of AI and Why Providers Must Set Guardrails  This is the Business of Tech.    Supported by:  https://syncromsp.com/   All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Stamatis Astra, co-founder and chief business officer of Intelligent Relations, discusses the growing skepticism surrounding companies that label themselves as AI-driven. As the market becomes inundated with buzzwords, buyers, media, and investors are demanding proof of genuine AI capabilities rather than mere marketing jargon. Astra emphasizes the importance of honesty in branding, urging companies to highlight their actual use of AI without exaggeration. He outlines the three main aspects of AI in the current landscape: generative AI, enhanced data analysis, and autonomous agents, noting that most applications today fall into the generative category.Astra advises brands to communicate their AI capabilities transparently, focusing on tangible results rather than vague claims. He suggests that companies should showcase specific examples of how they utilize AI to improve customer interactions and streamline processes. By providing clear, relatable demonstrations of AI in action, brands can cut through the noise and build trust with their audience. Astra believes that while AI can enhance efficiency, it cannot replace the critical thinking and creativity that humans bring to the table.The conversation also touches on the metrics used to measure the effectiveness of AI in public relations. Astra asserts that traditional metrics such as engagement, churn, and new users remain relevant, as AI serves as a tool to enhance these existing measures. He highlights the importance of user engagement as a key indicator of success, emphasizing that AI should ultimately make life easier for customers and improve their experience.Looking ahead, Astra predicts significant changes in the cost and accessibility of AI technologies. He foresees a future where creating databases and utilizing AI-driven systems becomes increasingly affordable and efficient. This shift will unlock new opportunities for businesses to leverage AI in innovative ways, ultimately transforming the landscape of public relations and communication.  All our Sponsors:   https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech