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  • Moving Multi-User Applications to the Cloud

    Recently, our customers with hybrid cloud environments want to move their final on-prem servers to the cloud or replace them with SAAS applications. For example, file servers can be moved to SharePoint. Until now, legacy two and 3-tier applications, written on platforms developed in the 1980s and 1990s, remained on-premise. They have an application server, possibly a separate database server, and endpoint (Client) software. These “client-server” applications were complex to upgrade and often postponed during the initial “move to the cloud.” But now there is increased demand. Why is that? Various factors are at play, including versions of Windows Server and SQL server going out of support or a delay, but the publisher is to release a SAAS version of their app. Additionally, many teams are staying partially or fully remote, making it impractical to maintain on-premise infrastructure. As customers grow comfortable with SaaS and implement related security controls, they are now exploring how best to move these final vestiges of their on-prem environment to the cloud.

    Specific Scenarios: Multi-User Applications

    These applications often function like legacy 2-tier or 3-tier applications, with server services running application and database software and client software on endpoints connecting to the server. Examples include QuickBooks Enterprise and custom Microsoft Access applications, which are often critical for daily operations.

    Considerations for Migration

    1. Login Handling: These applications typically have application-level security and are not integrated with Windows Server. We must consider how users log in and access their applications and Microsoft suite in the cloud.
    2. Connection Security: Previously secure on-prem connections need transport from endpoints to the cloud. Consider whether a VPN is necessary for secure connections.
    3. Data Security: Ensure data is encrypted at rest and in transit and meets compliance requirements like HIPAA, CMC, or GDPR.
    4. Endpoint Security: Secure the endpoint accessing the cloud-hosted app with appropriate defense software, firewalls, and patch strategies. Implement MFA and role-based access controls (RBAC).
    5. Compliance: Ensure all security measures meet compliance requirements.
    6. Shared Responsibility: Understand the shared responsibility model in the cloud.
    7. Securing the Azure cloud: Use tools like Microsoft Defender for Cloud for security management and threat protection.
    8. Vendor Compliance: Some software publishers require certified hosting providers. Ensure vendor support is available for your chosen hosting environment.
    9. Licensing: Most software publishers are moving to subscription models. Ensure you have the necessary server and per-user licenses.
    10. Performance and Resource Allocation: Consider network latency, bandwidth, and dynamic resource provisioning to avoid performance bottlenecks.
    11. Hosting Options: Evaluate virtual desktops, Azure Virtual Desktop, and remote desktop services with VMs in the cloud. If necessary, consider third-party hosting.
    12. Hybrid Solutions: Plan for Azure AD integration and connection points between on-prem and cloud infrastructure.

    Common Issues in Migration

    1. Network Latency: Ensure sufficient bandwidth to avoid latency issues.
    2. Licensing Compliance: Ensure correct licensing, especially for remote desktop services.
    3. Security: Implement firewalls, MFA, and regular updates. Use monitoring and logging tools to detect unusual behavior.

    Resource Allocation

    Avoid under-provisioning resources to prevent performance issues. It’s often better to start with higher resources and scale down as needed.

    Cost Considerations

    Consider subscription costs for servers, software, and security services. Include support and maintenance costs, whether internal or external and consumption costs based on actual usage.

    Next Steps

    Moving multiuser desktop applications to the cloud is a significant decision that requires careful planning and execution. Here are some next steps:

    • Consult with Experts: Work with an experienced architect to design and deploy your cloud solution. For example, TechHouse can provide expert guidance and support throughout the migration process, ensuring a smooth transition.
    • Evaluate Options: Assess different hosting options and choose the one that best fits your needs. For instance, compare the benefits of using Azure Virtual Desktop versus a third-party hosting provider certified by your software vendor.
    • Plan for Security: Implement robust security measures to protect your data and applications. For example, use Microsoft Defender for Cloud to continuously assess your security posture and receive actionable recommendations.
    • Monitor Performance: Regularly monitor and adjust resources to ensure optimal performance. For instance, use Azure Monitor to track the performance of your cloud-hosted applications and make necessary adjustments to resource allocations.

  • Microsoft Dynamics GP: Time to Move to Business Central

    Microsoft Dynamics GP has been a solid on-site ERP tool for many years. However, as technology changes, businesses need to consider new options to stay ahead. Microsoft will stop supporting and updating Dynamics GP in September 2029, with security patches until April 2031. Now is the best time to switch to Dynamics 365 Business Central and use cloud technology.

    Why Pick Dynamics 365 Business Central?

    Dynamics 365 Business Central is the next step from Dynamics GP. It has new features for small and mid-sized businesses (SMBs). This cloud-based tool brings finance, sales, service, and operations into one easy-to-use platform. It helps businesses work better.

    Dynamics GP vs. Business Central

    As a Dynamics GP user, moving to the cloud might seem complicated, but think about these points:

    • Problem: Dynamics GP is old and has limited cloud features. Fix: Business Central is a cloud-first tool with new features to help you grow.
    • Problem: Keeping on-site servers and data safe can be expensive. Fix: Use your budget for a complete cloud solution instead of on-site upkeep.
    • Problem: On-site tools can limit remote work and teamwork. Fix: Business Central works with your current Microsoft tools, boosting work and teamwork from anywhere.

    Business Central is a leader in today’s business world. It automates tasks and lets staff focus on key jobs. With Microsoft’s push for cloud technology, now is a great time to switch to Business Central.

    Your Move to Business Central

    For Dynamics GP users, we promise to help you move to Business Central. We have worked with GP for years and understand the steps for a smooth transition. We aim to make your switch smooth and easy.

    How We Help

    As a certified Microsoft partner, we offer:

    • Practical and Expert Help: Our team will learn about your needs and make a plan that fits.
    • Full and Friendly Support: We help with data moves, setup, training, and ongoing help. We make sure your switch is smooth, and your team is ready.
    • Innovative Custom Solutions: Every business is unique. We offer custom solutions, such as extra integrations or apps, to meet your needs.

    We are here for your long-term success. We will keep working with you to improve your Business Central setup, whether it’s new features, solving problems, or finding new growth opportunities.

    Contact Us

    Book a free 30-minute talk today to learn how we can help with your move.

     

  • Innovative and Practical: The Time to Innovate is Now

    It took 4.5 years for Facebook to reach 100 million users. It took ChatGPT only 3 months. Innovation is here and advancing fast. With advancements like SaaS software and Windows 11, the need for traditional reactive or break/fix support has dropped. This shift lets businesses focus more on innovation, making technology an accelerator, not an obstacle.

    The Shift in IT Resource Allocation

    In the past, a typical IT budget would allocate about 80% on reactive or break/fix support and only 20% on innovation. To stay competitive, this ratio needs to flip. Our team helps clients shift their focus to spending 80% on innovation and only 20% on reactive support. Here’s how:

    • Reduced Reactive Support Needs: Modern systems like Windows 11 and SaaS solutions have changed IT management. These technologies offer automated updates, better security, and user-friendly interfaces, cutting the need for traditional break/fix support. This shift lets businesses reallocate resources to more strategic tasks. If most of your budget is going toward managing legacy infrastructure like email servers and PCs, it’s time to change.
    • Focus on Security: According to a recent study by NinjaOne, 43% of cyberattacks target small businesses, yet only 14% are prepared to defend themselves. Addressing technical debt, using data management strategies, and adopting AI policies are key steps to protect your business and streamline processes.
    • Promoting Innovation and Efficiency: Innovation is at the heart of a successful business strategy. Our Aware reports give insights into security risks and innovation opportunities, helping you make informed decisions. Purchasing accounting, sales, and operations software is essential, but these packages rarely address all processes. Often, the additional processes are unique to the business and end up documented by Excel, Airtable, or even post-it notes—hard to scale and ensure quality control.

    The Importance of Innovation

    According to McKinsey, 80% of executives believe their current business models are at risk of being disrupted soon. Additionally, 84% of executives say innovation is crucial to their growth strategy. This shows the need for businesses to invest in innovation to stay competitive.

    Innovation is not just about keeping up with trends; it’s about setting them. It’s about creating new, more efficient processes that give your business a competitive edge. For legacy businesses that value their past, present, and future, staying on top of trends is crucial to remain relevant and competitive.

    Real-World Examples of Innovation

    • Thimble: Thimble offers small businesses instant, flexible insurance policies. Their on-demand insurance can last from an hour to a year, making it adaptable to the needs of small businesses. This innovation has helped Thimble grow rapidly.
    • Pledge: Pledge turns virtual gatherings into charity fundraising events. By integrating with platforms like Zoom, Pledge makes it easy for small organizations to engage in philanthropy.
    • Tractor Beverage Co.: This company offers organic, non-GMO drinks to restaurants. Their focus on sustainability and health has helped them carve out a niche in a competitive market.
    • Bookshop.org: Bookshop.org gives independent bookstores a platform to sell books online, offering an alternative to giants like Amazon. This supports small businesses by expanding their reach.

    Benefits of Windows 11 and SaaS

    Windows 11 supports hybrid work and learning environments, making it easier for IT teams to manage and providing advanced security features. This reduces the need for extensive break/fix support, as the operating system is more streamlined and user-friendly. The shift towards SaaS and modern systems has also cut the time spent on customer communications and project management.

    • Enhanced Security: Windows 11 has built-in security features like hardware-based isolation, encryption, and malware protection, which reduce the risk of cyber threats.
    • Streamlined Management: The user-friendly interface and automated updates of Windows 11 and SaaS solutions simplify IT management, allowing IT teams to focus on strategic tasks rather than routine break/fix support.

    Economic Impact of SMBs

    Small and midsize businesses (SMBs) make up a large part of the US economy—44% of GDP, nearly half of all employment, and roughly $370 billion in tech spending. This shows the significant impact of SMBs on the economy and their potential for growth through innovation.

    SMBs are the backbone of the American economy, driving innovation and providing jobs. By investing in technology and innovation, SMBs can boost productivity, improve customer satisfaction, and achieve sustainable growth.

    Increased Software Spending

    More than six in every ten midsize businesses (64%), small enterprises (65%), and large enterprises (67%) globally plan to spend more on software in 2024 compared to 2023. This shows a growing trend towards investing in technology and innovation.

    Investing in software is not just about keeping up with trends; it’s about using technology to drive business growth. By adopting innovative software solutions, businesses can streamline operations, improve efficiency, and stay ahead of the competition.

    Conclusion

    Innovation is not just about creating something new; it’s about creating something better. For legacy businesses that value their past, present, and future, staying on top of trends is crucial to remain relevant and competitive. By shifting the focus from reactive support to innovation, businesses can ensure they continue to meet their vision and legacy.

    Let Technology act as an Accelerator, not an obstacle.

    Innovative Solutions. Practical Software. Friendly Support.
    Ready to transform your business and stay ahead of the competition?
    Contact us today to learn how our innovative solutions can help you reduce reactive support needs and focus on what truly matters—growing your business.
    Visit test.wingdingitbiz.com/ or call us at (941)328-8601 to get started.

  • Hurricane Readiness: Essential Tips to Stay Safe

    When a hurricane is approaching, preparation is key to ensuring the safety and well-being of you and your loved ones. Here are some crucial steps to take before and during the storm and the best sources for up-to-date information on the storm’s path and intensity.

    Best Sources for Storm Information

    National Hurricane Center (nhc.noaa.gov)

    For the most recent and reliable updates on the hurricane’s probable path and intensity, always refer to the National Hurricane Center (nhc.noaa.gov). They provide detailed forecasts, warnings, and real-time updates.

    Before the Storm Hits

    1. Water and Food Preparation

    • Fill clean tubs and sinks with drinkable water from the faucets.
    • Fill Ziploc baggies with water and freeze them. Use these frozen baggies to keep your cooler cold and refill your freezer.
    • Stock up on nutritious snacks like nuts. Avoid sugary foods that can increase thirst.

    2. Personal and Home Safety

    • Have plenty of push hand soap on hand. Fire ants can be a nuisance during cleanup; applying soap to bites immediately can prevent itching.
    • Charge your phone and, if possible, get a backup battery charger. Keep your phone in low power mode to conserve battery.
    • Unplug electronics and store essential items as high as possible to avoid flood damage.
    • Check your computer files and ensure they are backed to the cloud for easy access.

    3. Entertainment and Communication

    • Prepare board games, paperbacks, and playing cards to pass the time if the power goes out.
    • Have a baggy with dry rice ready in case your phone gets wet. Dry the surface and place it in the rice to absorb moisture.
    • Set up a call tree to check in on everyone. Using Teams with Audio Conferencing, you can leave a meeting open for communication throughout the storm. Team members can connect by Internet or dialing in.

    4. Safety Measures

    • Store loose items from your yard in a shed or indoors to prevent them from becoming projectiles.
    • Close all windows completely. Leaving them open a crack is a myth and can cause more damage.
    • Download the NOAA and FEMA apps for real-time alerts and to file claims quickly if damage occurs.

    During the Storm

    • Stay Indoors: The wind is dangerous, but flying debris propelled by the wind is even more hazardous.
    • Be Aware of Sudden Changes: Sudden wind and water surges can occur without warning.
    • Avoid Flood Waters: They can contain contaminants and pose serious health risks.

     

     

  • Make the Most of Outlook

    In the past, businesses could refresh their technology every three or four years if it was hardware. For accounting software, it might be every seven years. Often, these refreshes didn’t even include training. Your team completed training only if you implemented a fundamentally new piece of software. Even in those cases, only a few people would be trained, and the rest would provide support as needed. So many times, training and configuration have been limited, with the thought being that people can figure it out as they go. If the software is user-friendly enough, they can figure out what to do with it and use only the “out-of-the-box” features as shipped.

    We’re in a new world where so much has changed, and technology is doing much more. Outlook isn’t just about sending and receiving email. You have to ensure email can get through the security protocols. Instead of receiving maybe 20 emails a day, you may be receiving 200 emails a day. So, how do you focus on the ones that matter most? How do you identify what to look at? The tools are just not as simple because the world we’re working in is not as simple as it used to be. We need to keep up with the tools and these new features within the tools.

    Let’s look at Outlook and some things that have happened within it. Outlook has created several capabilities to help you get more done. So what are some of those? I’ll outline four here, and then join us in our webinar to learn more about these and how to implement them so you can get more done in less time.

    You can now look at your Outlook and email views simultaneously to keep track and not have to switch between tabs. Advanced search features that didn’t exist before can help you manage your email more effectively. Using capabilities like @Mentions helps highlight to users that an email has been directed at them.

    Sometimes, these features don’t work the way we had expected. The Focused Inbox caused much pain for many users when it was first rolled out. They thought they weren’t receiving emails because those emails were not going to the Focused Inbox. Even today, many of our users choose to remove the Focused Inbox.

    Lastly, security settings must be more robust because the world requires so much more defense than it used to. But that can also mean you don’t receive the emails you are accustomed to. Many of our customers have had challenges adjusting to Quarantine and Safe Senders to ensure that all the emails they expect to receive are received.

    Keeping up with the pace of technology is just over the top now. Where training used to be a nice-to-have, it’s a must-have today if you’re going to get the benefit out of your software and also prevent problems. To learn more about how these features can benefit your business, we invite you to attend our upcoming webinar or schedule a consultation with our experts. Let us help you stay ahead of the curve and make the most of these advancements.

  • Copilot, Copilot, Copilot: Which One Should I Use?

    So many versions of Copilot are available, and they have been released in less than a year. It isn’t easy to know where to begin and how to get started. For beginners, we recommend understanding some of the Copilot products to focus your efforts on the area that will work best for you.

    Why Does It Matter to Know About Copilot?

    Copilot is Microsoft’s equivalent to ChatGPT. It allows you to use everyday language to communicate with an artificial intelligence neural network, which uses its learning from the internet and other sources to generate probabilistic responses that help us get things done. If you are not familiar with AI, we recommend you look at Kathy Durfee’s LinkedIn article or drop into one of our office hours to talk with us.

    A Quick Look at the Most Common Copilot Tools

    • Copilot in Bing: Allows you to use AI tools when searching with Bing. It’s built-in and doesn’t require a license.
    • Copilot in Edge: Similar to Copilot in Bing but integrated within the Edge browser.
    • Copilot in Windows: Integrated within Windows 11 and higher, providing AI assistance within your system.
    • Copilot Pro: Allows you to interact with an artificial intelligence engine to ask questions and help develop various text and content creation activities.

    Licensed Copilot Products for Specific Purposes

    • Copilot for Microsoft 365 helps you take advantage of the knowledge stored within your tenant, such as SharePoint and Exchange.
    • Copilot for Sales and Copilot for Service: Helps you understand prior customer communications and develop effective email and communication responses.

    This is just the tip of the iceberg. Each of these Copilot products has its features and benefits and requires its level of configuration and capabilities. If you’d like to learn more, please schedule a consultation with us. We have a detailed guide that you can acquire, or you can take advantage of our Aware for Copilot service to help guide you through the rollout.

    We also invite you to one of our upcoming > Office Hours.

  • IT Budget Changes for 2025: A Simple Guide

    Organizations need to prepare for significant shifts in IT budgets in 2025. Let’s explore the main areas to focus on:

    Cybersecurity

    The world of online threats is growing, and so are the rules for fighting them. It’s time to beef up your defenses with smarter security measures, like AI that detects threats. Stay on top of the newest security measures to cover your bases. Check out TechHouse’s guide on cybersecurity best practices to ensure you’re well-protected. Our Aware for Microsoft 365 report provides a simplified view of your Microsoft 365 security for email, files, and more.

    Cloud Services

    Cloud services aren’t going anywhere, but managing costs will matter more than ever. Consider better ways to handle your cloud resources and hybrid solutions to balance cost and effectiveness. Streamline your services by combining communication and workflow tools into a single platform. Monitor adoption and usage reports to understand value and cost effectiveness.

    Trends in Microsoft Cloud

    Leverage Microsoft’s cloud ecosystem to stay ahead in 2025. The Microsoft AI Platform, including Azure AI and Microsoft Copilot, offers advanced AI capabilities to enhance productivity, creativity, and security. Additionally, the Microsoft Dynamics 365 suite provides integrated CRM and ERP solutions, enabling better customer experiences, operational efficiency, and data-driven decision-making.

    Hardware and Infrastructure

    Expect to spend more on hardware as the need to update old equipment and support remote workers grows. Many businesses invested in new equipment in 2020/2021, and probably time for an update. Many of these, from computers to firewalls, are available virtually on a subscription basis. For some needs, Cloud PCs might be a more affordable option.

    Software Licensing

    The bill for software, especially for AI, automation, and team collaboration tools, is increasing. The good news? Like hardware, software is now available primarily by subscription. As new needs arise, you can adjust without being stuck with old tech.

    IT Support and Training

    With the rise of new tech, training your team to handle it, especially AI and cybersecurity is a must. Training is for more than just the IT crowd; everyone should be up to following company tech policies. Most cyber security insurance policies today require cybersecurity awareness training.

    Data Backup and Recovery

    Given the increasing risks, it is wise to invest more money in backing up your data and quick recovery options. Downtime can be expensive, so having several ways to recover is smart. Keep in mind that the cloud software providers are not responsible for breaches that occur on your accounts.

    Scalability

    As your business grows, your IT needs will too. Investing in scalable solutions, like modular hardware or flexible cloud services, will help you meet future needs without breaking the bank. Balance the flexibility of month-to-month plans with the discounts that come with annual commitments.

    Compliance

    Rules are changing, and spending to keep up with compliance, especially to protect sensitive data, will need to go up. Whether following new industry guidelines or ensuring your tech meets specific standards, compliance can’t be ignored.

    In summary, 2025’s IT budgets for small businesses are about making smart, future-focused investments, particularly in security, efficiency, and growth. With careful planning, your business can navigate these changes smoothly.

    Connect with us for more information:

    > Schedule a call
    > Join us for an upcoming Office Hours

  • AI as Competitor and Coworker – a thought starter for non-technical business leaders (Part 5)

     Part 5: So, if this sounds like a lot, can I just ignore AI for now?

    One of our customers asked if they could just create a “No AI Allowed” policy and thereby avoid the AI challenges until everything is settled. Unfortunately, that could be quite hard to implement. Microsoft and LinkedIn published the results of their study on AI in the workplace in May 2024. Below is the Infographic.  In general, AI is used by 75% of workers worldwide. AI at Work Is Here. Now Comes the Hard Part (microsoft.com)

    How could that be? Someone recently shared with me a list of over 1,000 programs available with AI. How common is AI? Even very common tools like Google search and Edge Bing use AI as do Word, Excel, QuickBooks and more. It is unlikely a no-AI policy is possible at this stage.

     

    And so, from here? Now what?

    How do we proceed with our business in a universe that includes not only AI-trained models but also foundational models with probabilistic responses to our prompts?

    Changes in thought and understanding can rattle more than our cage. It can shift the ground beneath our feet and upset our understanding of the world order. Does it change that order? Or just our understanding of it? Either way, how do we plan for a future that appears to be such a deviation from the past that we can feel like we are on a completely different planet?

    I do not believe the answer to that question is known. We don’t have a finite scenario we can test to ensure an accurate outcome. But we deal with similar scenarios in our business every day. Each interaction with an employee, customer, client, or board member requires decisions that are probabilistic, not certain.

    In this situation, like those, we gather the facts of the situation, arm our team with the tools we can, and make our best guess, then tacking and adjusting as needed to drive forward.

    Gather the facts of the situation.

    Like other Macro Trends, understanding the fundamental principles of AI is essential. Identify a trusted advisor, preferably a few who can provide perspective.

    Prepare your team.

    Ensure your team has critical thinking skills. Provide them training on what AI is. Ensure they know if they are working with Classical Machine Learning or Deep Learning models. Are they asking questions for answers or providing prompts for responses?They need to know what to ask. As Alfred Lanning told Will Smith’s character “Del Spooner” in iRobot, “That, Detective, is the right question.”

    Setup the necessary technical platform

    Data Governance: AI eases decision-making. However, it requires a vast amount of data to do it well. Ensure you have a data governance platform in place.

    Make your best guess.

    Consider AI in your business, your industry, among your customers, and in your community. What will change? How will it change? Consider 3 outcomes and prepare a rough plan should they arise. Revisit this plan as you would any other business plan, only with the fast rate of change, a monthly or quarterly revisit may be required rather than annual.

    Track and Adjust

    More than traditional software, AI models are constantly evolving, as are our adaptation to a world with AI. To understand where we are, we need to know where we have been. Identifying measures for performance and risk and continually monitoring those to respond is needed. Additionally, create feedback loops from your team to ensure you benefit from the variety of perspectives and experiences as quickly as possible. There are many tools available. A good start is Microsoft’s RAI Impact assessment template: Microsoft-RAI-Impact-Assessment-Template.pdf

    Don’t Go It Alone: Some ways TechHouse can help

    • Free Webinars to stay aware: Contact us for our upcoming webinars.
    • Check out Kathy’s AI panel on Bright Talk June 21st, 2024, at 1pm eastern.
    • Our CoPilot AwareTM Solution contains curated assessments, sample policies,communications, and guides for your AI Adoption journey.
    • Training and mentoring for you and your team: from Cybersecurity to Critical thinking workshops, our team is dedicated to transferring skills to help your team thrive in this new world.
    • Technical Preparedness and Tools: Engage us for an AI preparation, Data Governance, cybersecurity, or CoPilot/AI rollout in your organization.

  • AI as Competitor and Coworker – a thought starter for non-technical business leaders (Part 4)

     Part 4: AI as Collaborator: Guardrails, Ethics and Responsibilities

    Having an AI model available for prompt and response interaction is like having another team member to brainstorm with. With more perspectives, you can increase the probability of solving the problem, especially if that second person brings specific knowledge and understanding.

    Like the digitized, non-tested data from the internet which informs the model to make the decision, the AI model could provide flawed decisions and guidance.

    With humans, we assume some of the information we receive is flawed. We assume that the data the person is working from could be better and that their problem-solving ability and decision-making processes could be better.

    We know that humans are not system-tested. What they’re saying may or may not be accurate, so we combine our experience with our five senses of what we see in the real world with what the human is saying and try to discern what information to proceed with. Is what they’re saying entirely correct? Partially, correct?

    In the past, we could assume that if a computer provided an answer, it was accurate, or the programmers did not test it sufficiently, and it needed to be fixed. The bar for well-run software was accuracy. We would even use a computer to test a human’s work, such as solving a complex math problem.

    In this new world we need to be aware that Chatbots which are built on Deep-Learning AI and Large Language Models use probability to gauge an answer. Unlike traditional software, and even unlike Classical Machine Learning like our OCR invoice above, the Chatbots with Deep Learning AI are not system tested. And yet, we find many people are thinking of these tools as if they were. We often hear our customers asking a Chatbot a question or asking a Chatbot to create content and then using that content as is, as though the results have been system tested somewhere for accuracy. As though if they just ask the question in the right way, they will get an answer. When it will always be a prompt with a response. A response based on probability not system-tested accuracy.

    This brings us to another critical area for our strategy – Ethics, responsibility, and potential liability.

    If the model is trained on digitized internet data, what biases and errors are reflected in that information? How will it help or harm our business and decisions if we rely on it for responses derived from biased information? What happens to decisions that would shift given information discovered by science or elsewhere in 2024 if the foundational model was last updated in 2022?

    How about legal risks? In August 2023, the Equal Opportunity Commission settled its first AI hiring discrimination lawsuit. The three companies violated the 1967 Age Discrimination Act because the AI hiring program “automatically reject[ed] female applicants age 55 or older and male applicants age 60 or over.” There is ongoing litigation for a class action lawsuit involving Workday. Amazon stopped using its AI hiring tool because, having been trained on a database of primarily male applicants, it preferred resumes that used words that are more commonly used by men in their resumes like “executed” and “captured.” Navigating the AI Employment Bias Maze: Legal Compliance Guidelines and Strategies (americanbar.org)

    Most AI and Standards organizations have identified the necessity of trustworthy and responsible AI. The National Institute of Standards and Technology (NIST.gov), the ones who decide an inch is an inch and  have defined these key “building blocks” Trustworthy and Responsible AI | NIST:

     

     

    Microsoft requires that all its customers commit to responsible and ethical AI. Their landing page can be found here: Empowering responsible AI practices | Microsoft AI.

    Don’t Go It Alone: Some ways TechHouse can help

    • Free Webinars to stay aware: Contact us for our upcoming webinars.
    • Check out Kathy’s AI panel on Bright Talk June 21st, 2024, at 1pm eastern.
    • Our CoPilot AwareTM Solution contains curated assessments, sample policies, communications, and guides for your AI Adoption journey.
    • Training and mentoring for you and your team: from Cybersecurity to Critical thinking workshops, our team is dedicated to transferring skills to help your team thrive in this new world.
    • Technical Preparedness and Tools: Engage us for an AI preparation, Data Governance, cybersecurity, or CoPilot/AI rollout in your organization.

     

  • AI as Competitor and Coworker – a thought starter for non-technical business leaders (Part 3)

    Part 3: Precision vs Probability. Testing Limits

    In this world of getting the correct answer, there’s an assumption that getting correct answers is what computers necessarily do. We have come to see computers as rigid deliverers of objective accuracy. At the end of the day, a computer’s answers are founded on “bits.” 010101. Either yes or no. It is intuitive to the human mind to believe that with only the options of yes/no, on/off, and 0/1, there is inevitably only correct and incorrect.

    None of us would be using accounting software if they advertised that they were correct 90% of the time. We are not interested in probability when determining how much money we have in our bank account to pay our bills or make payroll. We need precise answers.

    When someone says AI hallucinated, the founding assumption is that AI would be accurate because it is a computer system. But that is not necessarily the case.

    AI models make decisions based on their training. Like us, there is a probability that the decision will not be correct. There are two types of AI models. Classical Machine Learning, like our OCR example above, and Deep Learning.

    The chat/prompt AI tools are great examples of Deep Learning AI models. These AI neural networks consume a tremendous volume of information, such as the 40 years of digitized information on the Internet. The AI neural network absorbs that information and uses it to respond to the requests it receives. It “understands” language using “Large Language Models.” Notably, the terms used to interact with Chat tools are prompt and response, not question and answer.  The response from the AI neural network is built based on the probability of being correct based on the information it has absorbed.

     

    Unlike the OCR invoice scenario above, it is doubtful the AI Neural Network in your chat bot has been trained on your specific prompt. Instead, based on all it has absorbed, it will respond with the most probable answer. Although various AI models will be tested and trained over time to increase accuracy, the sheer complexity of a neural network trained on the Internet’s vast data stores makes it impossible to test each condition or even a significant portion of them.

    It reminds me of a quote from the movie Armageddon:

    President: What is this thing?

    Truman: It’s an asteroid, sir.

    President: How big are we talking?

    Scientist: Sir, our best estimate is 97.6 billion…

    Truman: It’s the size of Texas, Mr. President.

    President: Dan, we didn’t see this thing coming?

    Truman: Well, our object collison budget’s about a million dollars a year. That allows us to track about 3% of the sky, and begging your pardon sir, but it’s a big-ass sky.

    President: Is this, going to hit us?

    Truman: We’re efforting that as we speak sir.

    President: What kind of damage?

    Truman: Damage? A total, sir. It’s what we call a global killer. The end of mankind. Doesn’t matter where it hits, nothing would survive, not even bacteria.

    President: My God. What do we do?

    A trained model for a specific task will be precise and accurate in a way that the neural network with a chat large language model) prompt and response cannot. An AI Neural Network absorbs a tremendous volume of information, and then it will use probability based on what it’s read and what it thinks might be an answer to whatever question you have. The critical distinction here is that the prompt and response are not system-tested.

    So why would anyone use software that does not feature accuracy as its main feature? When working with Deep Learning AI, we must consider probability and likelihood. Is a Deep Learning foundational model without specific training on my prompt the right tool to decide how to handle an employee issue? How to write an email, even? No.

    When is Deep Learning best?

    When do we think about neural network prompts and responses in our business? When we can improve our capabilities and augment human capabilities. Rather than automation, it’s collaboration.

    We will explore collaboration with AI in our next blog post.

    Don’t Go It Alone: Some ways TechHouse can help

    • Free Webinars to stay aware: Contact us for our upcoming webinars.
    • Check out Kathy’s AI panel on Bright Talk June 21st, 2024, at 1pm eastern.
    • Our CoPilot AwareTM Solution contains curated assessments, sample policies, communications, and guides for your AI Adoption journey.
    • Training and mentoring for you and your team: from Cybersecurity to Critical thinking workshops, our team is dedicated to transferring skills to help your team thrive in this new world.
    • Technical Preparedness and Tools: Engage us for an AI preparation, Data Governance, cybersecurity, or CoPilot/AI rollout in your organization.