The Wall Street Journal wrote an article titled “The Day Delta’s ‘On-Time Machine’ Broke, and the Blame Game It Sparked,” which inspired WebProNews to investigate the aging IT issue further. 

The Crash that Grounded Delta

On July 19, 2024, a faulty update from CrowdStrike’s Falcon antivirus software crashed millions of Microsoft Windows-based computers across the globe. Airlines, hospitals, banks, and other industries were hit, but Delta Air Lines experienced the brunt of the fallout. The Atlanta-based airline canceled over 7,000 flights within five days, leaving thousands of passengers stranded, while other airlines, also affected, managed to resume operations in a fraction of that time.

According to Delta CEO Ed Bastian, the damage to Delta was significant—$500 million in losses—and largely due to the airline’s reliance on Microsoft’s Windows systems. “The CrowdStrike update took us out,” Bastian said in an interview with CNBC, “but the recovery process was excruciatingly slow. We had to manually reset 40,000 servers.” While Delta scrambled to get its systems back online, other airlines that use similar tech infrastructure returned to normal operations within a couple of days. This disparity has fueled speculation that Delta’s aging IT systems exacerbated the crisis.

Was Delta’s IT Outdated?

Microsoft and CrowdStrike have strongly pushed back against Delta’s narrative, with both companies implying that Delta’s IT infrastructure was behind the times. “Our preliminary review suggests that Delta, unlike its competitors, has not modernized its IT infrastructure, either for the benefit of its customers or for its pilots and flight attendants,” Microsoft attorney Mark Cheffo wrote in a letter to Delta.

CrowdStrike echoed this sentiment, stating, “It’s clear that Delta’s IT decisions—such as its heavy reliance on outdated systems—played a role in their slow recovery. We worked quickly to address the initial problem, but Delta did not act on the solutions offered.”

According to sources familiar with Delta’s internal operations, much of the company’s critical crew-tracking software, which schedules pilots and flight attendants, was running on older systems that were ill-prepared to handle a disruption of this magnitude. A former Delta executive noted, “This crew-tracking system was not robust enough to catch up quickly once it was overwhelmed by the backlog of data during the outage.”

Bastian Defends Delta’s IT Investments

Bastian has remained adamant that Delta’s systems were not to blame for the drawn-out recovery. “Since 2016, we’ve invested billions in IT upgrades and infrastructure,” he said, arguing that the severity of the outage was unprecedented and that Delta was simply unlucky. “We recognized the need to move away from older systems and had already been overhauling our crew-tracking software, which has performed well in previous disruptions.”

Delta’s COO Mike Spanos, who left the airline shortly after the incident, backed this claim, saying, “In the heat of the moment, we opted not to cancel flights en masse, believing a more surgical approach would help minimize customer impact. In hindsight, a more aggressive cancellation strategy could have reduced the chaos.”

However, despite these assertions, internal reports from Delta pilots and union officials suggest that Delta’s systems, particularly its Gate Keeper and crew-tracking systems, were slow to recover and overdue for a major overhaul. “The crew-tracking system is ancient,” said a Delta pilot who asked to remain anonymous. “We were relying on outdated technology, and it failed when we needed it the most.”

The Legal Fallout

The blame game reached its peak when Delta hired David Boies, a high-profile litigator, to pursue damages against both CrowdStrike and Microsoft. In a letter to CrowdStrike dated July 29, Delta claimed that the tech company was responsible for “substantial harm” and demanded $500 million in compensation. CrowdStrike’s response was swift and firm, with a company spokesperson calling Delta’s legal threats “unreasonable” and asserting that their liability was contractually capped at single-digit millions.

Delta’s expectations, according to CrowdStrike, were unrealistic. “Delta wanted us to take full responsibility without any substantiation,” said a CrowdStrike representative. “They didn’t take into account the role their own IT decisions played in prolonging their recovery.”

Microsoft also entered the fray, accusing Delta of declining offers of help. “Microsoft made daily offers to assist Delta,” Cheffo wrote, “but these were turned down repeatedly,” Microsoft claims that Delta’s crew-tracking system, which does not run on Microsoft platforms, was the primary cause of the delays. “This was not a Microsoft problem,” a source close to the company said. “Delta’s internal systems weren’t able to handle the situation.”

Outdated Infrastructure: The Elephant in the Room?

While the CrowdStrike software update has been identified as the trigger for the meltdown, many industry experts and insiders argue that Delta’s underlying technology was the real culprit behind the airline’s delayed recovery. Delta’s rivals, including American Airlines and United, also faced the same faulty update, yet they managed to bounce back far more swiftly, with minimal disruption to their schedules. So why did Delta, a company that prides itself on operational efficiency and punctuality, stumble so badly in its recovery?

According to Microsoft, Delta’s reliance on outdated infrastructure played a significant role in dragging out the recovery process. In a letter from Microsoft’s attorney, Mark Cheffo, the tech giant did not mince words, stating that Delta “apparently has not modernized its IT infrastructure, either for the benefit of its customers or for its pilots and flight attendants.” Microsoft further highlighted that Delta had declined offers of technical support during the outage, raising questions about how prepared Delta really was for such a crisis.

Delta Turned Down Help From Microsoft

“Delta was offered daily assistance from Microsoft starting July 19, when the outage occurred, through July 23,” said Cheffo. “Yet, each time, the airline turned it down. Senior executives from Microsoft also reached out to their Delta counterparts, including CEO Ed Bastian, but they received no response.” This narrative paints a picture of an airline caught flat-footed by the outage and unwilling, or unable, to accept help when it was most needed.

But Delta has pushed back hard on this assertion. In an internal memo to employees, Delta CEO Ed Bastian claimed the airline had made significant investments in its IT systems over the years, citing billions of dollars spent on technology upgrades since 2016. “We have a long track record of investing in safe, reliable, and elevated service for our customers and employees,” Bastian wrote. He also underscored that Delta’s recovery challenges were a direct result of its heavy reliance on Microsoft and CrowdStrike systems. “It’s important to recognize that Delta’s IT infrastructure is among the most complex in the industry, and the failure of CrowdStrike’s update to properly integrate with Microsoft Windows caused significant disruptions that could not be easily fixed.”

Delta’s Crew Tracking System “Limping Along for Years”

However, others within the airline and cybersecurity sectors suggest that Delta’s IT infrastructure has long been overdue for a comprehensive overhaul. According to a pilot union leader, who requested anonymity, Delta’s crew-tracking system — a critical component that matches pilots and flight attendants to flights — was already a known weak point before the CrowdStrike outage. “That system has been limping along for years. It doesn’t surprise me that it crashed so spectacularly,” the union leader said. “The sheer volume of data and operational complexity was just too much for the outdated system to handle once the outage hit.”

Moreover, internal documents viewed by The Wall Street Journal in its article (linked above) reveal that Delta has been planning to modernize its crew IT systems for years, but much of that work was slowed down during the COVID-19 pandemic. A presentation to pilots in June of 2024, just weeks before the outage, outlined a roadmap for updating the crew-tracking infrastructure. Still, it was not clear if those changes would have been in place in time to mitigate the fallout from the CrowdStrike incident. “We recognize the need to move away from these 40-plus-year-old systems,” said Philip Higgins, Delta’s managing director of operations, in a recording of the meeting.

Delta IT “Running of Fumes for Years”

Yet, the pace of these upgrades raises questions about Delta’s prioritization of its tech investments. A former Delta executive, speaking on the condition of anonymity, was more critical, suggesting that the airline’s leadership has been too focused on short-term cost savings at the expense of long-term resilience. “Look, it’s no secret that Delta likes to spend money on things passengers can see — the flashy airport lounges, the new planes, the service upgrades. But when it comes to the backbone of their operation, they’ve been running on fumes for years,” the former executive said. “This outage exposed the cracks in that approach. You can’t keep running mission-critical systems on legacy infrastructure and expect everything to hold together when disaster strikes.”

Delta’s crew-tracking system was at the heart of the airline’s operational meltdown, taking days to catch up with the flood of delayed and canceled flights. Pilots and flight attendants were stranded in the wrong cities and unable to be reassigned to new flights because the system couldn’t process the backlog of data fast enough. The airline was forced to rely on manual processes to match available crew to planes — a method that was not only inefficient but entirely unsustainable given the scale of the disruption. “We had pilots who couldn’t get through to the system for days,” said a Delta pilot, who was caught in the chaos. “We were being asked to self-report where we were on Monday because the airline had lost track of us by Friday. It was an absolute mess.”

Delta’s Outage a “Wakeup Call” to the Entire IT Industry

Adding to the complexity, Delta’s scheduling systems, including its Gate Keeper program, which manages the flow of planes through the airline’s Atlanta hub, also struggled to recover from the outage. The software snarls forced Delta to reduce traffic to just 20 arrivals and departures per hour, far below the normal 50 to 60 flights per hour, resulting in a cascading effect throughout Delta’s global network. Thousands of flights were canceled, and tens of thousands of passengers were left stranded at airports across the world. “The slow recovery wasn’t just about fixing computers — it was about trying to untangle a massive web of disrupted operations,” said John Laughter, Delta’s senior vice president of operations.

This slow recovery and the evident strain on Delta’s aging systems have led to a deeper conversation within the aviation industry about how airlines allocate resources to their IT infrastructure. For years, airlines have been heavily dependent on complex, interlocking systems to manage everything from ticket sales to flight operations. “When those systems work, they’re invisible,” said one airline IT consultant who has worked with major U.S. carriers. “But when they fail, the cracks become very visible, very quickly. Delta’s outage should be a wake-up call not just for them, but for the entire industry.”

Delta IT Checklist (ASAP!)

Delta’s technology woes may lead to substantial changes in how the airline approaches its IT investments. Bastian has acknowledged that Delta is conducting a thorough review of its response to the outage, and the airline is reportedly considering a new vendor to replace CrowdStrike. However, replacing one software provider may not be enough to resolve the deeper issue of outdated infrastructure. “This isn’t just about blaming CrowdStrike or Microsoft,” said a former Delta IT manager. “This is about Delta taking a hard look at the systems they’ve been relying on for decades and realizing that if they don’t modernize now, they’re going to keep facing these kinds of crises.”

What Delta Should Do ASAP to Modernize Its IT:

In the aftermath of Delta Air Lines’ disastrous IT outage caused by a faulty CrowdStrike software update in July 2024, the question of whether Delta’s outdated IT infrastructure exacerbated the airline’s slow recovery has become a focal point of discussion. While the blame game between Delta, CrowdStrike, and Microsoft continues, it is clear that Delta’s reliance on legacy systems has left the airline vulnerable to such operational meltdowns. Modernizing Delta’s IT infrastructure is not just an operational necessity—it’s a strategic imperative.

WebProNews analyzed reams of IT expert talking points following Delta’s IT breakdown, and it comes down to just a few clear strategic IT initiatives. Delta should consider implementing the following steps as soon as possible to safeguard its operations from future disruptions and maintain its reputation as an industry leader in reliability.

1. Move to a Cloud-First Approach

Delta has long relied on on-premises systems, particularly in areas such as crew scheduling, gate management, and customer service. While cloud technology has been revolutionizing industries for over a decade, Delta’s commitment to fully transitioning to the cloud has been slow.

“Delta’s infrastructure is a patchwork of legacy systems and on-premise software that’s been duct-taped together over the years,” said an IT consultant familiar with Delta’s operations. “The first step toward real modernization is adopting a cloud-first strategy.”

The cloud offers the scalability, flexibility, and redundancy that Delta needs to avoid future disasters. Cloud-based systems would allow Delta to scale up resources when necessary, better handle the vast amounts of data generated by airline operations, and ensure that systems can quickly recover from failures.

What Delta should do: Transition critical applications, such as crew scheduling and gate management, to cloud-based solutions. This could involve partnerships with cloud service providers like Amazon Web Services (AWS) or Microsoft Azure, ensuring real-time access to vital systems from anywhere, along with built-in redundancy and disaster recovery options.

2. Overhaul Crew Scheduling and Operations Systems

One of the most significant pain points during the recent outage was the failure of Delta’s crew scheduling system, which left pilots and flight attendants stranded in the wrong locations with no easy way to track or reassign them. This outdated system, running on legacy software, couldn’t handle the backlog of flights and crews, contributing to Delta’s slow recovery.

A former Delta pilot described the chaos, saying, “The system was completely overwhelmed. We were essentially invisible to the airline for days, and that led to more cancellations and delays than necessary. It’s a system that should have been upgraded years ago.”

Modernizing crew scheduling with more robust, real-time solutions is critical. These systems must be able to process large amounts of data instantly, ensure crews are in the right place at the right time, and quickly recover from outages or other disruptions.

What Delta should do: Invest in modern crew management software that can handle the airline’s complex operations. Leveraging AI and machine learning could optimize crew allocation during irregular operations (IROPS) and provide predictive analytics for more efficient planning.

3. Invest in AI-Driven Operational Resilience

Airlines are complex, interconnected systems, and disruptions can ripple through them rapidly. Artificial intelligence (AI) has the potential to predict disruptions, optimize recovery, and offer real-time solutions to mitigate the impact of technical failures.

AI-driven tools can help airlines like Delta analyze vast amounts of operational data to foresee delays, optimize flight paths, and even provide real-time recommendations during operational crises. Several airlines, including Delta’s competitors, have already begun integrating AI-driven solutions into their operations to enhance resilience.

“AI offers a way for airlines to preemptively manage disruptions, rather than just reacting after the fact,” said an industry expert in aviation technology. “It’s a tool that, when fully integrated, could have minimized the impact of this summer’s outage.”

What Delta should do: Partner with AI-focused technology firms to implement predictive maintenance systems, real-time crew management tools, and optimization algorithms that can keep operations running smoothly during both normal conditions and disruptions.

4. Modernize Gate and Ground Operations Technology

Delta’s Atlanta hub is one of the busiest in the world, and during the CrowdStrike outage, gate operations ground to a halt. The system that controls the movement of planes through Delta’s hub, known as Gate Keeper, became a choke point during the crisis, reducing the number of flights Delta could handle by more than 50%. This technology, much like the crew scheduling system, needs an immediate overhaul.

Beyond gate management, the airline’s ground operations technology—systems that manage baggage, boarding, and customer service—need to be fully modernized. Any delays or malfunctions in these systems have a direct impact on Delta’s ability to deliver on its promise of timely, efficient service.

“Gate and ground operations are critical cogs in the machine of any airline. The moment these systems start faltering, the entire network can fall apart,” said a former Delta executive. “Delta can’t afford to be complacent with outdated systems in this area.”

What Delta should do: Upgrade the Gate Keeper system and other ground operations technology with modern, cloud-based solutions that are capable of handling large volumes of data and traffic. Implement redundancy and failover systems to ensure smooth operations even in the event of a failure.

5. Develop a Robust Disaster Recovery Plan

One of the most glaring lessons from the CrowdStrike outage is the importance of having a robust disaster recovery (DR) and business continuity plan (BCP). While Delta undoubtedly had some level of disaster recovery in place, the scale and duration of the outage suggest that these plans were either insufficient or not properly executed.

“Other airlines experienced the same software bug but managed to recover quickly because they had well-thought-out disaster recovery plans,” said an industry insider. “Delta’s delayed recovery is evidence that they need to go back to the drawing board.”

What Delta should do: Create a comprehensive disaster recovery plan that includes regular testing, real-time simulations, and redundant systems that can be quickly brought online in the event of a failure. This plan should encompass all critical systems, including crew scheduling, flight operations, customer service, and IT infrastructure.

6. Enhance Cybersecurity and Vendor Management

The relationship between Delta, CrowdStrike, and Microsoft is strained, with each side pointing fingers over the July outage. While Delta works to modernize its IT infrastructure, it must also reassess its cybersecurity posture and vendor management practices.

CrowdStrike’s security software was supposed to protect Delta, but when the update went wrong, the reliance on third-party software proved to be a vulnerability. In a world where cyber threats are increasing, Delta can no longer afford to leave its cybersecurity entirely in the hands of external vendors.

What Delta should do: Conduct a thorough audit of all third-party software and service providers, and implement strict oversight to ensure all systems are secure and regularly updated. Delta should also consider bringing more cybersecurity capabilities in-house to reduce its reliance on external vendors for mission-critical systems.

7. Rethink IT Talent and Culture

A critical component of any IT modernization effort is the people behind it. Delta has historically outsourced much of its IT work, relying on vendors like IBM and other managed service providers. While this may reduce costs in the short term, it can lead to a lack of institutional knowledge and agility during times of crisis.

In the long run, Delta needs to invest in building a strong internal IT team capable of handling both day-to-day operations and emergencies. This team must also foster a culture of innovation and continuous improvement to keep pace with technological advancements.

What Delta should do: Focus on recruiting top IT talent, particularly in cloud computing, AI, and cybersecurity. Delta should also invest in training and development to ensure its in-house IT team is well-equipped to handle future challenges.

The CrowdStrike outage was a wake-up call for Delta Air Lines, exposing deep vulnerabilities in its IT infrastructure. Delta needs to act decisively and swiftly to modernize its technology to prevent a repeat of the summer’s chaos. Delta’s path to IT modernization is clear from cloud migration and AI implementation to stronger cybersecurity and a robust disaster recovery plan. The question now is whether the airline will seize this opportunity and future-proof its operations—or risk being left behind in an industry that depends more than ever on technology.

A Call for Accountability

Delta’s meltdown has sparked broader conversations about the vulnerability of modern airlines to tech outages and the need for robust disaster recovery plans. Industry experts are quick to point out that while tech failures like the CrowdStrike update are unpredictable, the ability to recover quickly is a matter of preparation.

One senior IT consultant remarked, “It’s not about whether your system will fail; it’s about how quickly you can get it back online. Delta’s response shows that they didn’t have a strong enough business continuity plan in place, and that’s what really prolonged the chaos.”

As the legal battle unfolds, the question of whether Delta’s outdated IT infrastructure exacerbated the recovery remains at the center of the controversy. What’s clear is that in today’s interconnected world, airlines—and other industries—are only as resilient as their tech systems allow them to be. Delta’s experience may well serve as a cautionary tale for companies relying on aging systems in an era of rapid technological advancement.

It should be noted that decisions on IT spending are always obvious in hindsight and difficult to make when operations are running smoothly. Delta is the largest airline in the world and made strategic decisions to go with premium partners like Microsoft and Crowdstrike. The company clearly was spending a lot on infrastructure via these partnerships.

The question is, did Delta wait too long to upgrade other company-controlled software and IT systems that were critical to their operations, or were they simply victims of a bad software update by a valued partner? The real answer is likely very nuanced, with plenty of blame to go around. In other words, shit happens.

IBM’s Retreat: A Response to Shifting Market Dynamics

IBM’s decision to shut down its China R&D operations was communicated to employees in a virtual meeting led by Jack Hergenrother, an IBM executive. According to employees who attended the meeting, Hergenrother emphasized the intensifying competition within the Chinese market and the declining performance of IBM’s infrastructure business as key factors driving the decision. “IBM faced intensifying competition in China with its infrastructure business declining in the past few years,” Hergenrother reportedly said, underscoring the challenging environment that has led to this strategic shift.

The closure, which will impact over 1,000 employees across several cities in China, including Beijing and Shanghai, is part of a broader strategy to concentrate R&D efforts in regions outside China. Notably, IBM plans to bolster its R&D presence in other countries, with India, particularly Bengaluru, being a primary beneficiary of this shift. “IBM plans to concentrate its R&D in several regions,” Hergenrother stated, hinting at a strategic realignment that moves critical operations closer to emerging markets and away from the geopolitical risks associated with China.

The Geopolitical Undercurrents

IBM’s retreat is not an isolated incident but rather part of a broader trend of U.S. technology firms scaling back their operations in China amid escalating geopolitical tensions. The U.S.-China trade war, which has morphed into a broader tech war, has seen both countries impose increasingly stringent restrictions on technology transfers, data security, and intellectual property protections. This hostile environment has made it increasingly difficult for U.S. companies to operate in China without facing significant regulatory and market challenges.

“The move shows the diminishing importance of the region for U.S. tech firms as local clients increasingly opt for home-grown providers,” observed Anurag Rana, an analyst at Bloomberg Intelligence. This sentiment echoes the broader concerns of many multinational corporations operating in China, who are finding it harder to compete against state-supported Chinese tech giants and are facing pressure from both U.S. and Chinese regulators.

IBM’s challenges in China are further compounded by Beijing’s “Delete America” campaign, which encourages Chinese companies and state-owned enterprises to reduce their reliance on American technology. This policy shift has led to a significant drop in IBM’s market share in China, with revenue reportedly falling by 19.6% in 2023. “Since the early 2010s, China has become a tougher market, as government agencies and state-owned businesses started replacing IBM servers, Oracle databases, and other products of U.S.-based companies,” noted a former IBM employee, reflecting on the long-term impact of these policies on IBM’s operations in China.

Impact on IBM and Its Employees

The closure of IBM’s China R&D operations is a significant blow to the company’s presence in the region. The affected employees, many of whom have spent years working on critical projects for IBM, are now faced with uncertain futures. While some employees have been offered the opportunity to relocate to other countries, including India, others have been offered severance packages, reportedly based on the length of their employment.

This move follows IBM’s earlier decision in 2021 to close a Beijing-based lab focused on cutting-edge research, signaling a gradual but steady reduction of the company’s footprint in China. “At one time, IBM saw China as a R&D hub for global growth markets, but higher personnel costs and compliance risks have made the Chinese operation less attractive for that role,” said another former employee, reflecting on the factors that have led to IBM’s retreat from China.

Broader Implications for the Tech Industry

IBM’s decision to shut down its China R&D operations is indicative of a broader trend among U.S. technology companies. Microsoft, for example, has also downsized its cloud-computing and AI-research operations in China, while other tech giants like Apple and Google have faced increasing pressure to diversify their supply chains away from China.

#IBM to shut down its #China R&D department, dismissing over 1,000 employees. IBM says this won’t affect support for clients in China and will focus on private and multinational companies. This marks a major shift in IBM’s 40-year history in China, where state-owned enterprises… pic.twitter.com/KyOcEaEBdw

— Tech Tech China (@techtechchina) August 26, 2024

The implications of these moves are far-reaching. For one, they highlight the growing difficulties that U.S. companies face in navigating the complex regulatory and market environment in China. As Chinese companies continue to grow stronger, buoyed by government support and a vast domestic market, U.S. firms are finding it increasingly challenging to compete.

Moreover, the geopolitical tensions between the U.S. and China show no signs of abating. The tech war, which includes disputes over semiconductors, AI, and other critical technologies, is likely to continue shaping the strategic decisions of multinational companies. As one analyst put it, “Hardware is a particularly sensitive arena given the U.S. and China are locked in a conflict over key technologies from semiconductors to artificial intelligence.”

The End of an Era?

IBM’s exit from China’s R&D landscape marks the end of an era for the company, which once viewed China as a cornerstone of its global strategy. The move reflects the broader geopolitical and economic realities that are reshaping the global technology landscape. As U.S. companies continue to reassess their operations in China, the tech industry may see further realignments in the coming years.

For now, IBM’s focus will likely shift to markets where it can operate with fewer geopolitical constraints and where it sees greater potential for growth. The relocation of its R&D efforts to India, a rapidly growing tech hub, is a clear indication of where the company sees its future. As the global tech landscape continues to evolve, the decisions made by companies like IBM will serve as a barometer for the broader shifts occurring in the industry.

"IBM China" confirmed that it will completely close its R&D department in China, affecting more than a thousand employees. Some employees revealed that the layoff compensation is "N+3". Last Friday night (23rd), the access rights of thousands of employees in

— jeff lee (@Jefflee8084Lee) August 26, 2024

In the words of Jack Hergenrother, “IBM adapts its operations as needed to best serve our clients.” This adaptation, while necessary, underscores the increasingly difficult choices that global companies must make in a world where technology and geopolitics are inextricably linked. The company’s decision to withdraw from China’s R&D sector is not just a reflection of the local market conditions but also a strategic response to a broader global context where the stakes are high, and the risks are significant.

The Future of U.S.-China Tech Relations

IBM’s exit raises important questions about the future of U.S.-China relations in the technology sector. As both nations continue to vie for technological supremacy, the decisions made by corporations like IBM could set precedents for others. The retreat of U.S. companies from China might also accelerate Beijing’s efforts to become self-reliant in critical technology areas, further entrenching the divide between the two superpowers.

Moreover, this move by IBM could be a harbinger of further decoupling in the tech industry. With the U.S. government imposing more stringent export controls on technology and increasing scrutiny over intellectual property transfers, American companies might find it increasingly difficult to maintain a significant presence in China without compromising on compliance and security.

The Impact on Global R&D Strategies

For global companies, the closure of IBM’s China R&D operations could signal a shift in how and where R&D activities are conducted. India, with its burgeoning tech talent and growing importance as a global R&D hub, stands to gain from this realignment. This could potentially lead to an influx of investments and job creation in the Indian tech sector, bolstering its position in the global tech ecosystem.

On the other hand, China’s ambitions to become a leader in technology innovation could be hampered by the withdrawal of major Western players. However, Chinese companies, backed by strong government support, may fill the void left by IBM and others, focusing on developing homegrown technologies and reducing dependence on foreign entities.

A Strategic Pivot in a Complex World

IBM’s decision to close its R&D operations in China is a complex and multifaceted move, shaped by both market forces and geopolitical realities. It marks a significant chapter in the ongoing saga of U.S.-China relations and highlights the growing challenges faced by multinational companies operating in these two economic giants.

"IBM Shuts China R&D Operations in Latest Retreat by U.S. Companies"https://t.co/ZvEqQzSvhT

(I'm surprised they still had R&D there. It's impossilbe to keep state-sponsored spies out of your organization if you're in China.)

— Thrill Science עם ישראל חי (@ThrillScience) August 26, 2024

As IBM refocuses its R&D efforts in regions like India, the tech landscape will continue to evolve, with new centers of innovation emerging in response to global shifts. The long-term implications of this move will unfold over time, but it is clear that the era of unfettered global expansion for U.S. tech companies in China is drawing to a close.

In navigating this new landscape, companies will need to be agile, strategic, and ever-mindful of the broader geopolitical currents that influence their operations. IBM’s retreat from China is a testament to the fact that in today’s interconnected world, business decisions are rarely just about business—they are about survival, adaptation, and the relentless pursuit of a competitive edge in an increasingly divided world.

In this deep-dive exploration, we’ll examine the profound impact AI is having on enterprise IT, delve into the frameworks guiding its adoption, and hear from industry experts on how organizations are leveraging AI to transform their operations.

The Current Buzz: AI’s Role in Enterprise IT

The buzz around AI has been palpable for years, but its impact on enterprise IT is only now being fully realized. “Everybody gets that AI is going to change the world, but nobody is really clear as to how,” observes Geoffrey Moore, author of Crossing the Chasm and The Infinite Staircase. Moore’s sentiment encapsulates the paradox facing CIOs and IT leaders today. They are under immense pressure to invest in AI, yet the path forward is still forming, norming, and storming.

a16z just released an enterprise AI report after speaking to dozens of Fortune 500 companies.

Thanks @sarahdingwang for this.

Here are 8 insightful slides:

1. For production use cases, OpenAI still has dominant market share. pic.twitter.com/TwqU1yExSa

— Chief AI Officer (@chiefaioffice) March 24, 2024

AI’s influence is pervasive across various layers of enterprise IT, from infrastructure to systems of engagement and record. According to Vala Afshar, Chief Digital Evangelist at Salesforce, “AI is reshaping the way enterprises operate by infusing intelligence into every layer of the IT stack, creating opportunities for unprecedented efficiency and innovation.”

Systems of Infrastructure: The Foundation of AI Integration

At the heart of enterprise IT lies the systems of infrastructure—the backbone that supports all other systems within an organization. AI’s impact on these systems has been profound, particularly in the areas of compute power and data management.

“To generate a competitive Large Language Model (LLM) requires a hyperscale compute footprint that only a handful of companies have the resources to deploy,” Moore explains. The demand for computing power has skyrocketed with the advent of AI, leading tech giants like Microsoft, Amazon, and Google to invest billions in expanding their infrastructure capabilities. For other companies, the challenge lies in licensing these powerful LLMs and adapting them for their own use.

Data management has also been revolutionized by AI. Enterprises are now tasked with extracting vast amounts of data from systems of record, engagement, and collaboration, normalizing it, and filtering out sensitive information—all in real-time. This data is then staged in data lakes, ready for AI-driven analysis and decision-making. “AI is driving enterprises to rethink their data strategies, ensuring that they can capitalize on the wealth of information they possess,” says a representative from Scale Venture Partners.

Moreover, latency issues in real-time applications have necessitated the deployment of edge computing. “Some processing needs to be done at the edge rather than in the core,” Moore notes. This shift calls for new infrastructure equipped with both GPUs and CPUs, capable of running real-time operating systems under robust cybersecurity measures.

Systems of Record: Enhancing Core Enterprise Functions

Systems of record—such as finance, HR, and supply chain management—are the bedrock of enterprise operations. These systems are traditionally conservative, prioritizing stability and integrity over adaptability. However, AI is poised to change that dynamic.

“AI changes this game dramatically,” Moore asserts. Generative AI, for instance, enhances the traditional user interface (UI) by introducing natural language processing (NLP). This shift allows employees to interact with systems of record more intuitively, reducing the need for extensive training and making these systems more accessible.

Predictive AI is another game-changer for systems of record. Unlike traditional software that is preprogrammed and static, machine learning algorithms continuously adapt and learn, offering real-time insights for critical functions such as predictive maintenance, fraud detection, and demand forecasting. “It’s like having a six-sigma black belt on duty 24/7,” Moore quips, emphasizing the transformative potential of AI in optimizing core enterprise functions.

Systems of Engagement: AI at the Frontline of Customer Interaction

While systems of record are essential for internal operations, systems of engagement—such as sales, marketing, and customer service—are the lifeblood of external interactions. These systems are less conservative by nature, requiring constant adaptation to meet the unpredictable demands of the market.

“Generative AI has a much bigger role to play in these market-facing applications,” says Moore. AI-driven tools are already being used to create and manage email marketing campaigns, respond to customer inquiries via chatbots, and provide on-demand technical support. These tools not only enhance efficiency but also enable a level of personalization and responsiveness that was previously unattainable.

However, predictive AI faces more challenges in systems of engagement due to the unpredictability of human behavior. Despite this, Moore argues that data-driven decision-making will eventually surpass human intuition in areas like sales forecasting and marketing campaign attribution. “Advanced statistical software that learns outperforms even the best humans eventually,” he adds, citing the success of AI in mastering complex games like Go as a parallel.

Systems of Collaboration: Enhancing Team Dynamics with AI

Systems of collaboration—encompassing tools like video conferencing, messaging, and file sharing—are integral to modern enterprises. These systems not only facilitate communication but also capture the nuances of team dynamics and relationships.

“AI excels at summarizations that cut through the clutter of long communication threads,” notes Moore. AI-driven tools are being used to streamline workflows, send timely reminders, and conduct sentiment analyses, all of which contribute to more efficient and effective collaboration.

The data generated by systems of collaboration is also invaluable for AI models, providing insights that can improve both collaboration itself and other systems within the enterprise. “By including such data in data lakes that feed your AI models, you’ll improve your systems of collaboration and make better recommendations to your systems of record and engagement,” Moore advises.

Systems of Intelligence and Autonomy: The Future of Enterprise IT

As AI continues to permeate enterprise IT, the concept of “systems of intelligence” is emerging as a critical component. Rather than existing as a separate layer, systems of intelligence infuse AI capabilities into every aspect of the IT stack, enhancing the intelligence of core business systems.

“Our core business systems are poised to become more intelligent,” Moore explains. This intelligence is achieved by overlaying advanced statistical software that learns, transforming the enterprise IT landscape. CIOs are now tasked with assessing and enhancing their systems’ “IQ,” ensuring that AI-driven insights are fully integrated into their operations.

However, the rise of “systems of autonomy” presents a new set of challenges. These systems, which can operate without human intervention, are already being used in areas like digital advertising, space exploration, and military threat detection. “The question is when you take the human out of the loop, who or what is in charge?” Moore muses. This is not an intractable problem, but one that requires careful consideration and a robust framework for governance.

Embracing AI’s Transformative Power

As AI continues to evolve, its impact on enterprise IT will only grow. The technology is transforming every layer of the IT stack, from infrastructure to systems of record, engagement, collaboration, intelligence, and autonomy. While the challenges are significant, the potential rewards are immense.

“AI is not just a tool; it’s a transformative force that will reshape the very nature of enterprise IT,” says a spokesperson from IT Chronicles. Organizations that embrace AI will be better positioned to navigate the complexities of the digital age, driving innovation, efficiency, and growth.

However, as Moore cautions, the path to AI adoption must be approached with strategic foresight. CIOs must prioritize where to engage first, ensuring that AI investments are aligned with their organization’s goals and capabilities. By doing so, they can harness the full potential of AI and secure their place at the forefront of the enterprise IT revolution.

As we move forward, the conversation around AI and enterprise IT will continue to evolve. New technologies, applications, and frameworks will emerge, offering fresh opportunities for innovation. By staying informed and adaptable, enterprises can not only keep pace with the changes but also lead the charge into the future of business.

“Our mission is to help the world’s most innovative companies tackle their toughest operational challenges,” Plummer explains. “We do this by combining AI automation with a workforce of over 5,000 experts across the globe, all integrated into one platform. This approach allows us to work with industry giants like OpenAI, Google, and Microsoft, helping them build foundational AI models and optimize their operations.”

The Pillars of Successful AI Integration

As companies race to integrate AI into their operations, many face significant challenges. Plummer identifies three critical components for successful AI adoption: talent, data, and vision.

“First and foremost, it’s about people,” Plummer emphasizes. “One of the biggest hurdles organizations face is the lack of talent within their teams to drive AI transformation. It’s not just about having a CTO or a head of AI; it requires a shift across the entire executive suite to reimagine a business that is AI-first.”

Plummer also highlights the importance of data, noting that many enterprises are sitting on vast amounts of proprietary data that could be invaluable if properly leveraged. “Most companies aren’t prepared to use this data effectively,” he says. “They struggle to extract it from legacy systems and prepare it for AI models. This is a critical step that can’t be overlooked.”

Finally, Plummer underscores the necessity of having a clear vision. “AI for the sake of AI doesn’t work,” he cautions. “Companies need to start with a clear understanding of what they want to achieve and build toward that goal. Without this direction, it’s easy to get lost in the excitement of new technologies without actually solving the problems at hand.”

Common Pitfalls in AI Adoption

While the benefits of AI are vast, many companies stumble during the integration process. Plummer points out that these missteps often stem from a lack of vision, the overabundance of tools, and poor partner selection.

“Starting without a clear vision is a common mistake,” he says. “Companies that jump into AI without understanding the specific problems they want to solve often end up frustrated. It’s crucial to work backward from the desired outcome.”

Another challenge is the sheer volume of AI tools available. “There’s a new AI tool released almost every day,” Plummer notes. “Without a strategy to integrate these tools effectively, companies can quickly create a chaotic environment that complicates workflows rather than streamlining them.”

Choosing the right partners is also critical. “With every company rebranding itself as an AI leader, due diligence is more important than ever,” Plummer advises. “Businesses need to ensure that their partners truly have the expertise and capabilities they claim.”

AI’s Impact on the Future Workforce

Looking ahead, Plummer is optimistic about AI’s potential to transform the workforce by unlocking new levels of creativity and innovation. “Today, so much of our time is spent on routine, mundane tasks,” he observes. “AI has the power to change that, allowing us to focus more on creative and innovative work.”

Plummer envisions a future where AI handles the execution of tasks, freeing up human workers to spend 80-90% of their time on creative endeavors. “This shift will lead to a massive wave of creativity and innovation as people begin to fully leverage AI technologies,” he predicts. “Of course, we’ll also see changes in the skills required, but the overall impact will be incredibly positive.”

Conclusion: Embracing the AI Revolution

As Invisible Technologies continues to lead the charge in AI-driven automation, it’s clear that the company is not just solving problems for today’s businesses but also shaping the future of work. Under Ben Plummer’s leadership, Invisible Technologies is helping enterprises navigate the complexities of AI integration while unlocking new possibilities for creativity and innovation.

“Invisible Technologies is about more than just automation,” Plummer concludes. “We’re about enabling the next generation of business leaders to harness the full potential of AI, transforming their organizations and the way they work. The future is incredibly bright, and we’re excited to be at the forefront of this revolution.”

AlmaLinux is a RHEL-based distro that aims to provide binary compatibility with RHEL, but the distro has been steadily improving on areas above and beyond RHEL. One of those areas is compatibility with hardware that RHEL has dropped.

“Releasing AlmaLinux 8.10 less than one week after the release of RHEL 8.10 proves again the power of AlmaLinux community and its ability to deliver on speed, quality, and security,” said lead architect at AlmaLinux, Andrew Lukoshko. “Powered by people and organizations that provide infrastructure and deep technical knowledge, we have proven our commitment to deliver the enterprise Linux that people need.”

Some of the hardware AlmaLinux 8.10 supports includes:

• Aacraid – Dell PERC2, 2/Si, 3/Si, 3/Di, Adaptec Advanced Raid Products, HPNetRAID-4M, IBM serveRAID & ICP SCSI
• be2iscsi – Emulex OneConnect Open-iSCSI for BladeEngine 2 and 3 adapters
• hpsa – HP Smart Array Controller
• lpfc – Emulex LightPulse Fibre Channel SCSI
• megaraid_sas – Broadcom MegaRAID SAS
• mlx4_core – Mellanox Gen2 and ConnectX-2 adapters
• mpt3sas – LSI MPT Fusion SAS 3.0
• mptsas – Fusion MPT SAS Host
• qla2xxx – QLogic Fibre Channel HBA
• qla4xxx – QLogic iSCSI HBA
• be2net – Emulex BladeEngine 2 and 3 adapters

In addition continued hardware compatibility, AlmaLinux 8.10 brings a number of additional improvements.

Updates in 8.10 also bring improvements in web-console and system roles to automate operations and ensure consistency in intricate IT settings. The new system roles streamline the creation and administration of logical volume manager (LVM) snapshots for better data backup and recovery processes. Additionally, AlmaLinux 8.10 further enhances system availability and recovery processes while also improving virtual machine snapshot functions in hybrid cloud scenarios.

Project leaders emphasized how this latest release emphasizes the commitment to keeping pace with RHEL releases.

“Our consistently speedy releases, as illustrated by today’s announcement and the recent release of
9.4, underscore the reliability and timeliness offered via AlmaLinux,” said benny Vasquez, chair of
the AlmaLinus OS Foundation. “With AlmaLinux, users can confidently deploy robust, scalable, and
secure Linux environments, ensuring seamless integration and maximum operational efficiency.”

Once a 1:1 RHEL clone, AlmaLinux has adapted to be application binary compatible since Red Hat began restricting access to its source code. As a result, AlmaLinux developers have been free to improve on some areas, going beyond RHEL’s limitations while still maintaining full compatibility.

AlmaLinux 9.4, and now 8.10, continue to demonstrate the project’s role in providing a free and fully open-source alternative to Red Hat.

While the United States remains the chief world leader in this field, there are signs that both China and India may soon overtake Uncle Sam in this strategic area. Both countries are sending thousands of students abroad to learn the latest developments in software. And then having them return home to bolster national research and development.

Custom software development, which ranges from advancements in artificial intelligence and machine learning to the growing importance of cybersecurity, are not just influencing how software is developed and deployed, but also how it’s integrating into every aspect of our lives.

The overview

1. Artificial Intelligence and Machine Learning: AI and ML continue to be at the forefront of software technology trends. In 2023, we are seeing these technologies becoming more sophisticated, with increased capabilities in natural language processing, predictive analytics, and automated decision-making. AI is being integrated into a variety of applications, from customer service chatbots to advanced data analytics tools, making processes more efficient and offering new insights.

2. Increased Focus on Cybersecurity: As the digital landscape expands, so does the need for robust cybersecurity measures. In 2023, there’s a heightened emphasis on developing software that’s secure by design. This includes the integration of advanced encryption techniques, regular security updates, and the use of AI for threat detection. Companies are also focusing on educating their employees about cybersecurity to mitigate risks.

3. Cloud Computing and Edge Computing: Cloud computing continues to dominate, but there’s a growing trend towards edge computing. Edge computing involves processing data closer to where it’s generated rather than in a centralized data-processing warehouse, which reduces latency and improves speed. This is particularly important for IoT devices and applications that require real-time processing.

4. The Rise of Quantum Computing: Quantum computing, although still in its nascent stages, is starting to make more substantial strides in 2023. With its potential to process vast amounts of data at unprecedented speeds, it promises to revolutionize areas such as cryptography, materials science, and complex system modeling.

5. Sustainable and Green Software Development: With increasing awareness of environmental issues, there’s a growing trend in developing sustainable and green software. This involves optimizing software for energy efficiency, reducing resource consumption, and considering the environmental impact of development and deployment processes.

6. The Expansion of Blockchain Technology: Beyond cryptocurrencies, blockchain technology is finding applications in various sectors including finance, supply chain management, and healthcare. Its ability to offer secure, transparent, and tamper-proof record-keeping is being leveraged to improve processes and create new business models.

The results 

7. Remote Work and Collaboration Tools: The shift to remote work, accelerated by the COVID-19 pandemic, continues to influence software development in 2023. There’s an increasing demand for collaboration tools that facilitate efficient remote work, including project management software, real-time communication platforms, and virtual workspace solutions.

8. Increased Use of Low-Code and No-Code Platforms: Low-code and no-code platforms are democratizing software development, allowing individuals without extensive programming knowledge to create applications. This trend is empowering more people to develop software, leading to innovation and rapid prototyping.

9. Advancements in Virtual Reality (VR) and Augmented Reality (AR): VR and AR technologies are becoming more sophisticated and accessible, finding applications in training, education, entertainment, and retail. These technologies are not only enhancing user experiences but also creating new avenues for interaction and engagement.

10. Focus on User Experience (UX) Design: There’s a continued emphasis on UX design in software development, with a focus on creating intuitive, user-friendly interfaces. Good UX design is increasingly seen as a critical factor in the success of a software product.

11. Growth of Internet of Things (IoT): IoT technology is expanding rapidly, with more devices being connected to the internet. This trend is leading to the generation of large amounts of data and the need for sophisticated software to analyze and utilize this data effectively.

12. Software for Social Good: There’s a growing trend of developing software aimed at addressing social and global challenges, such as healthcare accessibility, education, and environmental sustainability. This reflects a broader shift towards socially responsible technology development.

Conclusion 

In conclusion, the software technology trends of 2023 reflect a dynamic and rapidly evolving industry. From the integration of AI and ML in various applications to the focus on cybersecurity and sustainable development, these trends are not only shaping the way software is developed but also how it’s transforming businesses and impacting society at large. As we move forward, these trends will likely continue to evolve, offering new challenges and opportunities in the world of software technology.

Microsoft Threat Intelligence says bad actors have been using the ms-appinstaller URI scheme (App Installer) to distribute malware since at least mid-November 2023. Microsoft has disabled the protocol handler in an effort to combat its abuse.

The observed threat actor activity abuses the current implementation of the ms-appinstaller protocol handler as an access vector for malware that may lead to ransomware distribution. Multiple cybercriminals are also selling a malware kit as a service that abuses the MSIX file format and ms-appinstaller protocol handler. These threat actors distribute signed malicious MSIX application packages using websites accessed through malicious advertisements for legitimate popular software. A second vector of phishing through Microsoft Teams is also in use by Storm-1674.

Threat actors have likely chosen the ms-appinstaller protocol handler vector because it can bypass mechanisms designed to help keep users safe from malware, such as Microsoft Defender SmartScreen and built-in browser warnings for downloads of executable file formats.

The attacks are especially dangerous for Teams users, since the bad actors are spoofing legitimate Microsoft pages.

Since the beginning of December 2023, Microsoft identified instances where Storm-1674 delivered fake landing pages through messages delivered using Teams. The landing pages spoof Microsoft services like OneDrive and SharePoint, as well as other companies. Tenants created by the threat actor are used to create meetings and send chat messages to potential victims using the meeting’s chat functionality.

More information can be found here, including detailed analysis of the attack. In the meantime, Microsoft says organizations should educate Teams users to be able to identify and protect themselves from this exploit.

Educate Microsoft Teams users to verify ‘External’ tagging on communication attempts from external entities, be cautious about what they share, and never share their account information or authorize sign-in requests over chat.

AI is being used to generate content, with it being an especially popular option among students. Educators are anxious for tools to detect such content, with many different tools claiming to be able to do so.

Unfortunately, according to an article on the company’s website, such tools simply don’t work:

Do AI detectors work?

• In short, no. While some (including OpenAI) have released tools that purport to detect AI-generated content, none of these have proven to reliably distinguish between AI-generated and human-generated content.
• Additionally, ChatGPT has no “knowledge” of what content could be AI-generated. It will sometimes make up responses to questions like “did you write this [essay]?” or “could this have been written by AI?” These responses are random and have no basis in fact.
• To elaborate on our research into the shortcomings of detectors, one of our key findings was that these tools sometimes suggest that human-written content was generated by AI.
  • When we at OpenAI tried to train an AI-generated content detector, we found that it labeled human-written text like Shakespeare and the Declaration of Independence as AI-generated.
  • There were also indications that it could disproportionately impact students who had learned or were learning English as a second language and students whose writing was particularly formulaic or concise.
• Even if these tools could accurately identify AI-generated content (which they cannot yet), students can make small edits to evade detection.

The revelation sheds greater light on why OpenAI shuttered its own AI content detector and illustrates the challenges that lie ahead for educators and others.

The vulnerability and phishing campaign was discovered by Oleg Zaytsev and Nati Tal, researchers at Guardio Labs.

Those phishing campaigns cleverly evade conventional detection methods by chaining the Salesforce vulnerability and legacy quirks in Facebook’s web games platform. Guardio Labs has disclosed these findings and worked with Salesforce and Meta to close the vulnerabilities and misuse.

The phishing campaigns tried to trick users into going to a fake Facebook page in an effort to steal their Facebook login information, as well as their two-factor authentication information. Targets received an email that appeared to come from Meta but came from a salesforce.com domain.

So it’s a no-brainer why we’ve seen this email slipping through traditional anti-spam and anti-phishing mechanisms. It includes legit links (to facebook.com) and is sent from a legit email address of @salesforce.com, one of the worlds leading CRM providers.

The researchers praise both Salesforce and Meta for quickly addressing the issue and providing a fix to all impacted services. At the same time, they express concern over the growing sophistication of such phishing attacks, combining a range of legitimate services to thwart countermeasures.

The prevalence of phishing attacks and scams remains high, with bad actors continuously testing the limits of email distribution infrastructure and existing security measures. A concerning aspect of this ongoing battle is the exploitation of seemingly legitimate services, such as CRMs, marketing platforms, and cloud-based workspaces, to carry out malicious activities. This represents a significant security gap, where traditional methods often struggle to keep pace with the evolving and advanced techniques employed by threat actors.

It is imperative for these service providers to exercise additional caution and implement stringent measures to thwart such abuse. Taking proactive steps to keep scammers away from secure and reputable mail gateways is of utmost importance. This includes bolstering verification processes to ensure the legitimacy of users, as well as conducting comprehensive ongoing activity analysis to promptly identify any misuse of the gateway, whether through excessive volume or through analysis of metadata such as mailing lists and content characteristics.

Kudos to Salesforce and Meta’s Security teams for their prompt response to our discoveries and their ongoing efforts to enhance the security and resilience of their platforms against scammers’ attempts.

Security firm Sophos made the discovery, dubbing the malware campaign “Nitrogen.” Sophos says Nitrogen “is a primarily opportunistic attack campaign abusing Google and Bing ads to target users seeking certain IT tools, with the goal of gaining access to enterprise environments to deploy second-stage attack tools such as Cobalt Strike.”

The company goes on to describe how the malware campaign works:

The observed infection chain starts with malvertising via Google and Bing Ads to lure users to compromised WordPress sites and phishing pages impersonating popular software distribution sites, where they are tricked into downloading trojanized ISO installers.

When downloaded, the installers sideload the malicious NitrogenInstaller DLL containing a legitimate software application bundled with a malicious Python execution environment. The Python package uses Dynamic Link Library (DLL) preloading to execute the malicious NitrogenStager file, which connects to the threat actor’s command-and-control (C2) servers to drop both a Meterpreter shell and Cobalt Strike Beacons onto the targeted system. Throughout the infection chain, the threat actors use uncommon export forwarding and DLL preloading techniques to mask their malicious activity and hinder analysis.

The infection chain involves multiple stages and components, which are still under analysis at this writing.

Cisco AnyConnect, WinSCP, and TreeSize downloads are three that are specifically being targeted by the malware campaign.

Sophos recommends taking basic steps to avoid the malware, such as not clicking download links in search advertisements, using an ad blocker to hide such ads altogether, and making sure downloaded files have the appropriate file extension.

Of course, the report raises significant questions about the security measures — or lack thereof — that Google and Bing’s advertising networks offer.

Michael Schwarz was speaking at a World Economic Forum panel in Geneva, according to Bloomberg, and made the following statement:

“I am confident AI will be used by bad actors, and yes it will cause real damage. It can do a lot damage in the hands of spammers with elections and so on.”

Schwarz went on to say that he believed AI needed to be regulated but said lawmakers should tread carefully and wait to see what damage it causes to better understand how to regulate it effectively.

“Once we see real harm, we have to ask ourselves the simple question: ‘Can we regulate that in a way where the good things that will be prevented by this regulation are less important?’” Schwarz said. “The principles should be, the benefits from the regulation to our society should be greater than the cost to our society.”

Concerns regarding AI’s future have been growing, with Google’s “Godfather of AI” recently quitting the company and expressing regret over his life’s work. Dr. Geoffrey Hinton expressed similar, and much more dire, concerns as Schwarz.

“It is hard to see how you can prevent the bad actors from using it for bad things,” Dr. Hinton said.

The European Union (EU) has always been at the forefront of regulating sensitive devices. Its latest batch of regulations covering medical devices has several implications for manufacturers and the medical device market. 

MDR (medical device regulations) replace older frameworks governing the manufacture and tracking of medical and implantable devices. As these devices have grown more complex, so have the regulations surrounding them.

Here’s how a medical device manufacturer can prepare for the latest wave of EU MDR legislation.

Assess existing compliance

The current batch of laws introduce several changes and medical device manufacturers must identify deficiencies and plan to plug those gaps. One of the most critical changes involves manufacturer responsibility during post-market surveillance.

Per the EU MDR, manufacturers are now responsible for establishing a post-market surveillance system proactively. This surveillance must capture and analyze device performance in real-world conditions and feed data back for risk reassessments and clinical evaluations.

The objective here is to make sure devices are always safe and to study how their behavior changes over their lifecycle. Most manufacturers are currently unprepared to monitor lifecycle changes in this context. Beyond a few rudimentary checks, most manufacturers rely on the market for feedback.

This situation has changed and is a good example of a gap most manufacturers must plug.

Evaluate resources

Securing gaps in current devices is expensive. Firms must initiate cost analysis projects to make sure they have enough resources to cover improvements and launch new processes.

The previous point about post-market surveillance is once again apt. Initiating a larger data-gathering program is resource-intensive and will need additional technical infrastructure. That infrastructure will need maintenance by qualified personnel.

All of these cost money. Medical device manufacturers must analyze their cash flow and plan for the future as quickly as possible. A lot of investment will likely go toward upgrading existing infrastructure.

For instance, the new directives call for more integration between quality management systems and downstream processes like surveillance and clinical evaluation. Right now, these integrations are weak, to say the least, with only the largest manufacturers possessing such capabilities.

Update documentation

With additional infrastructure comes the need to update documents and technical specifications. EU MDR laws now require documentation and labeling in line with the new directives. 

Devices must now have more detailed labels, outlining device usage, risks, and clinical evidence. 

Each device must also have a unique device identifier (UDI.) The UDI must be present on all device labels since this enhances its traceability throughout its lifecycle.

Manufacturers now have to offer consumers more information than ever and need to begin shifting their processes right now to avoid falling foul of new legislation.

Develop new processes

The EU MDR introduces new processes that manufacturers may have no ability to currently service. For instance, implementing data capture and relay systems is a step too far for current manufacturers. 

The changes go beyond mere data capture. Manufacturers must now process that data and feed it back for further clinical assessment. Those assessments must feed into product updates and delivery schedules.

In short, the new MDR laws need new processes that most medical device manufacturers haven’t considered. Starting as quickly as possible is the best way forward to ensure full compliance.

Build relationships with notified authorities

The new EU MDR rules specify that every manufacturer must engage with a notified body to ensure they conform with regulations. As every device manufacturer knows, building relationships within these bodies is critical to avoiding approvals stuck in red tape.

These regulatory bodies will evaluate and assess the manufacturer’s processes before approving their devices for wider market release. These assessments are set to take time and consume plenty of manufacturer resources.

The best way for manufacturers to avoid this situation is to work closely with the body, understand what they’re looking for, and modify their workflows accordingly. Hiring people who have experience working with these bodies is also a good idea.

The right professional can smooth any conversations with the authorities, easing the manufacturer’s entry into the market.

Train employees

EU MDR represents a huge shift in the medical device market. As a result, manufacturers who install new processes must also train their employees to think according to the new rules. Fail to do this and compliance becomes highly challenging.

Manufacturers must break down the new rules so that employees can understand how it affects their jobs. Training programs are best delivered in an environment that simulates real-world scenarios. Instead of delivering never-ending seminars that simply list the new rules, companies must translate the impact of those rules.

For instance, how will post-market surveillance change clinical research roles? How will those professionals have to handle the influx of new data? Answering these questions is essential to ensuring employees remain engaged and in line with new rules.

Constant change

The medical device market routinely experiences change. Forward-thinking manufacturers always position themselves ahead of the curve by working closely with regulators and ensuring their employees are up to speed on new rules.

The EU MDR is no different. While policies will change, medical device manufacturers that align themselves with change tend to prosper.

Spiff will join Sales Cloud following the acquisition. Salesforce says Spiff’s addition will help CROs to better work with financial and sales operations teams.

“CROs and financial leaders know the importance of compensation in driving rep behavior. The challenge these leaders face is in how to align these compensation plans to desired outcomes – all while navigating data across siloed-point solutions,” says Ketan Karkhanis, EVP & GM, Sales Cloud. “Spiff connects what sellers want – transparent compensation – with what sales leaders want – compensation planning built into CRM that aligns behaviors to strategic outcomes.”

“I’m excited about the future of Spiff and about what this means for the world of SPM and ICM in general,” says Jeron Paul, CEO of Spiff. “We have always taken pride in Spiff’s pace of innovation and I’m grateful for the opportunity to make an even deeper impact on the space as part of the Salesforce ecosystem.”

The terms of the deal were not disclosed, although the deal is expected to close in the Q1 of Salesforce’s fiscal year 2025.

Overview of Online Reputation Management and the Role of AI

In today’s digital age, online reputation management (ORM) is crucial for businesses. It’s the practice of monitoring and influencing the public perception of an organization on the internet. As we look to the future, artificial intelligence (AI) is steering ORM in novel and efficient directions. AI-driven tools are now capable of scanning the vast expanse of the web to track mentions, analyze sentiments, and identify patterns that humans alone may miss. They automate the handling of vast quantities of data, responding to reviews, and flagging inappropriate content. AI also personalizes customer interactions, ensuring that the responses feel organic and tailored, thus maintaining a brand’s reputation more effectively. As ORM continues to evolve, the integration of AI not only simplifies processes but also equips businesses with the agility to preemptively address potential reputation issues.

Current Uses of AI in Online Reputation Management

AI-powered sentiment analysis

AI technology powerfully assists companies in gauging public opinion by performing sentiment analysis. These advanced tools, bolstered by machine learning and natural language processing, delve into customer feedback, reviews, and social media conversations to ascertain not just the topics of discussion, but also the emotions behind them. Such real-time analysis enables businesses to rapidly respond to the market, adjusting strategies and communications to enhance their public perception.

AI-driven social media monitoring

Further, AI-driven social media monitoring is revolutionizing how businesses track and manage their online reputations. These intelligent systems tirelessly scan multiple platforms to identify brand mentions and relevant hashtags, providing comprehensive insights. They not only detect emerging trends but also alert firms to potential PR crises before they escalate. This proactive approach to social media management is now critical in safeguarding a brand against reputational damage in the hyper-connected digital landscape.

Future Trends in AI for Online Reputation Management

As we delve into future possibilities, artificial intelligence is anticipated to become even more integral to online reputation management (ORM). Advancements in AI will enable firms to not only react to reputational issues but also to predict and pre-empt them. These technologies are expected to expand the boundaries of ORM, enhancing the way companies interact with and understand their customers.

Predictive analytics for reputation management

Moving beyond real-time analysis, AI’s role in ORM is gearing towards predictive analytics. This evolutionary step empowers companies to foresee potential reputational risks by analyzing patterns and trends from historical data. Businesses will be able to take preemptive action by understanding which areas are most susceptible to negative impressions, ensuring they stay ahead of any issues that could impact their brand’s public perception.

AI chatbots for customer engagement and support

AI chatbots are poised to play a pivotal role in ORM by offering around-the-clock customer support and actively engaging with users across various platforms. As these chatbots become more sophisticated through learning from human interactions, they will be able to handle complex queries, provide personalized responses, and even identify and alert businesses to potential reputational risks. This level of proactive engagement and support not only enhances customer experiences but also directly contributes to maintaining a positive brand image.

AI-Enhanced Review Management

As we navigate the digital landscape, AI-enhanced review management is becoming an essential tool for businesses looking to maintain a stellar online presence. Its capabilities are reshaping how companies approach customer feedback and manage their reputations online.

Automated review analysis

Taking advantage of AI-powered tools, organizations can now automatically analyze vast numbers of online reviews across different platforms. This technology categorizes sentiments, gauges customer satisfaction, and summarily provides insights that would typically require extensive manual effort. The ability to quickly process and quantify customer sentiment on a large scale enables businesses to swiftly adapt to market demands, address concerns, and refine their offerings.

AI-powered review response generation

Beyond analysis, AI technologies extend to the generation of timely and appropriate responses to customer reviews. With natural language processing capabilities, AI systems can craft personalized replies that resonate with customers’ emotions and specific comments. This not only ensures prompt responses to customer feedback but also demonstrates a brand’s dedication to customer engagement and service excellence. Such interaction solidifies relationships between businesses and their clientele, fostering loyalty and trust.

AI-Driven Crisis Management

In the vibrant and rapidly evolving world of online reputation management, artificial intelligence plays a pivotal role, particularly in crisis management. As businesses continue to digitize, the potential crises that can arise from online activities grow proportionally, making AI an indispensable tool for preemptive measures and damage control.

Real-time monitoring and alert systems

AI-driven solutions are now capable of real-time monitoring of social media, blogs, news outlets, and other digital channels for any mentions that may impact a brand’s reputation. Advanced algorithms can detect negative trends and alert companies instantly, providing the opportunity to take immediate action. This swift notification system is crucial in a digital age where information spreads rapidly, allowing businesses to manage potential issues before they escalate into full-blown crises.

AI-powered reputation repair strategies

Following the detection of a reputational threat, AI can assist in devising and implementing effective repair strategies. By analyzing past crises and outcomes, AI systems can recommend the best course of action to mitigate damage. Whether it’s through creating tailored messaging for public responses or identifying the most effective communication channels, artificial intelligence offers informed and data-driven solutions that can help restore and maintain a positive online image for brands amid challenging situations.

AI and SEO for Reputation Management

As organizations strive to safeguard their online image, AI continues to shape the landscape of online reputation management. Looking towards the future, artificial intelligence is poised to play an even more integral role, with current uses already demonstrating its significant impact on strategies and outcomes.

AI-driven keyword monitoring

Artificial intelligence enhances search engine optimization (SEO) by tracking keywords closely associated with a brand’s online presence. Utilizing AI, companies can monitor their brand mentions across various platforms with unrivaled accuracy and efficiency. AI systems sift through vast expanses of online content to alert businesses to both positive and negative mentions, enabling them to craft timely and appropriate responses. Such proactive monitoring helps prevent the escalation of issues and ensures the maintenance of a healthy digital footprint.

AI-powered content creation for online reputation enhancement

The creation of engaging and reputation-enhancing content is another arena where AI demonstrates profound capabilities. Not only can AI tools suggest relevant content topics and identify trending keywords, but they can also generate material that is geared towards improving a brand’s SEO ranking. By producing high-quality and strategically optimized content, AI assists businesses in rising above the digital noise, ensuring their brand message is heard clearly and aligns with the desired reputation objectives.

Ethical Considerations in AI for Reputation Management

As we delve deeper into the digital age, the role of AI in online reputation management continues to evolve and expand. Organizations have recognized the profound benefits that AI offers in this domain, but with rapid advancements come new ethical considerations that must be addressed to responsibly harness AI’s capabilities. The emerging trends show a heightened focus on striking a balance between automation and human oversight, as well as ensuring the protection of privacy and data within reputation management strategies.

Balancing automation and human oversight

The future trend in reputation management points towards a seamless integration of AI’s analytical prowess with the empathic and contextual insights of human intuition. While AI excels at processing vast amounts of data, discerning the nuanced implications of that data still largely rests with human experts. Companies are, therefore, emphasizing the importance of having human professionals in the loop, reviewing and interpreting AI-generated insights to ensure they align with the brand’s values and ethical standards.

Privacy and data protection concerns

Another pressing concern that accompanies the use of AI in reputation management is privacy and data protection. As AI systems require access to large datasets to monitor and analyze online mentions and sentiments, there is an intrinsic need to keep individuals’ data secure. The current use of AI has spurred discussions on the ethical collection, storage, and processing of digital footprints to prevent breaches and misuse. Future trends indicate that businesses will need to be more transparent about their AI-driven activities and take stringent measures to comply with data protection laws, thereby preserving trust and maintaining a good reputation among stakeholders.

Conclusion

In an era where online presence is virtually synonymous with reputation, AI’s role in managing this digital image has become indispensable. With real-time monitoring, sentiment analysis, and deepfake detection, AI is revolutionizing the ways in which reputations are shaped and protected online.

Summary of the current and future impact of AI in online reputation management

Currently, AI is transforming online reputation management (ORM) by providing tools that can process and analyze enormous volumes of data with exceptional speed and accuracy, allowing for proactive reputation management. Looking towards the future, AI is set to play an even more integral role. We’re expecting to see AI systems equipped with advanced algorithms that not only detect potential reputation threats but also predict them before they even occur. This proactive approach will not only mitigate issues faster but also enhance the strategic decision-making processes within businesses.

Moreover, as these technologies continue to develop, the ethical use of AI in ORM will remain a focal point, with an increasing emphasis on privacy and transparency to maintain public trust. AI’s evolution in ORM signals a future where businesses can navigate the complex digital landscape with greater confidence and foresight.

One of the challenges of virtual meetings is ensuring everyone can be seen, especially when traditional conference rooms are paired with videoconferencing. All too often, some of the attendees are hidden behind others, making it difficult for those tied in via videoconference to interact effectively with everyone.

Zoom’s Intelligent Director is designed to solve that problem.

The traditional conference room experience can come at the cost of clarity and transparency. Someone can get lost in the back of the room, or left out if they’re not in the office. Meaningful connections can’t be mutually exclusive with a physical location — we have to find ways to share information in real time, regardless of where people are.

Building on the popular smart gallery feature for Zoom Rooms, Intelligent Director, patent pending, uses multiple cameras and the latest AI technology to determine the best angle of the individuals in a Zoom Room to display within a meeting. And it’s included in existing and new Zoom Rooms.

The tool is currently available on Mac and Windows but will come to other devices in the future.

To learn more and get started, check out Zoom.com.

According to a job posting, Microsoft is looking a Principal Program Manager, Nuclear Technology to head the company’s transition to nuclear reactors to power training its AI models:

This senior position is tasked with leading the technical assessment for the integration of SMR and microreactors to power the datacenters that the Microsoft Cloud and AI reside on. They will maintain a clear and adaptable roadmap for the technology’s integration, diligently select and manage technology partners and solutions, and constantly evaluate the business implications of progress and implementation.

The ideal candidate will have experience in the energy industry and a deep understanding of nuclear technologies and regulatory affairs. This role will also be responsible for research and developing other precommercial energy technologies.

The company’s job posting illustrates the steep requirements involved in developing generative AI models.

Comprehensive Security Solutions

One of the most notable advancements in managed IT services for healthcare is the enhanced focus on cybersecurity. With the healthcare sector being a prime target for cyberattacks due to the wealth of sensitive patient data stored, robust security measures are non-negotiable. Managed IT services now offer comprehensive security solutions, including advanced threat detection, encryption, and 24/7 monitoring to identify and mitigate potential threats before they can cause harm. Moreover, these services ensure that healthcare organizations comply with stringent healthcare regulations like the Health Insurance Portability and Accountability Act (HIPAA), protecting patient privacy and safeguarding against legal repercussions.

Cloud Computing and Data Management

The adoption of cloud computing in healthcare has revolutionized data management, providing a secure and scalable solution for storing patient information. Managed IT services have played a crucial role in this transition, helping healthcare providers migrate to the cloud and manage their data more effectively. By leveraging cloud technologies, healthcare organizations can ensure that patient data is accessible when and where it’s needed, facilitating better collaboration among healthcare professionals and ultimately leading to improved patient outcomes.

Telemedicine and Remote Patient Monitoring

Telemedicine has seen exponential growth, especially in the wake of the COVID-19 pandemic, and managed IT services have been pivotal in its widespread adoption. By providing the necessary infrastructure and support, these services enable healthcare providers to offer virtual consultations, enhancing accessibility to medical care, especially for patients in remote or underserved areas. Additionally, the integration of remote patient monitoring technologies ensures continuous monitoring of patients’ vital signs and health status, allowing for timely interventions and personalized care plans.

Interoperability and Integration

Interoperability, the ability of different IT systems and software applications to communicate, exchange data, and use the information that has been exchanged, is crucial in healthcare settings. Managed IT services have significantly advanced interoperability by facilitating the integration of disparate systems, ensuring seamless data flow across various platforms and devices. This not only streamlines administrative processes but also ensures that healthcare providers have access to comprehensive patient information, leading to more informed decision-making and better patient outcomes.

Artificial Intelligence and Machine Learning

The integration of artificial intelligence (AI) and machine learning (ML) in healthcare is another area where managed IT services are making a significant impact. These technologies are being utilized for a variety of applications, including predictive analytics, diagnostic assistance, and personalized treatment plans. Managed IT services ensure that healthcare organizations have the necessary computational power and expertise to leverage these advanced technologies, unlocking new possibilities in patient care and operational efficiency.

Enhanced Collaboration and Communication

Managed IT services facilitate enhanced collaboration and communication within healthcare settings, connecting doctors, nurses, and administrative staff across various departments and locations. By implementing unified communication systems and collaboration tools, these services ensure that healthcare professionals can work together effectively, regardless of their physical location, leading to improved coordination and patient care.

Continuous Monitoring and Proactive Maintenance

The continuous monitoring and proactive maintenance of IT systems are crucial in healthcare settings, where system downtime can have severe implications. Managed IT services provide 24/7 monitoring of healthcare organizations’ IT infrastructure, identifying potential issues before they can escalate and cause disruptions. Additionally, regular maintenance and updates are performed to ensure that systems are operating at optimal levels, minimizing the risk of downtime and ensuring the continuous delivery of critical healthcare services.

Customization and Scalability

Healthcare organizations vary significantly in terms of size, complexity, and the services they offer. Managed IT services for healthcare recognize this diversity, providing customized solutions tailored to meet the unique needs of each organization. Whether it’s a small clinic requiring basic IT support or a large hospital needing a comprehensive IT infrastructure, managed IT services can scale their offerings to provide the necessary level of support.

Conclusion

Managed IT services for healthcare have become indispensable in today’s digital age, offering a range of solutions that enhance security, improve efficiency, and enable the adoption of the latest technologies. As healthcare organizations continue to navigate the complex IT landscape, these services will play a crucial role in ensuring they are well-equipped to provide exceptional patient care and meet the challenges of the modern healthcare environment. With continuous advancements and a relentless focus on innovation, managed IT services for healthcare are set to play an even more significant role in shaping the future of healthcare.

The airline first launched the London to Austin route in May 2022 amid the pandemic-fueled growth in the tech industry, and specifically in the Austin tech scene. However, according to Insider, the airline has announced it will end that route on January 7, 2024.

“We’ve adored flying our customers to Austin and experiencing this wonderful city of music and culture, but demand in the tech sector is not set to improve in the near term, with corporate demand at 70% of 2019 levels,” Virgin Atlantic chief commercial officer Juha Järvinen said in a statement. “Therefore, sadly, we made the tough decision to withdraw services.”

Officials for the Austin-Bergstrom International Airport (AUS) said they hope the airline will eventually reverse its decision and resume the route.

“AUS is grateful to the incredible Virgin Atlantic team for launching this ambitious route,” read a statement released to X. “We hope to welcome them back one day.”

Meta relies heavily on artificial intelligence moderation tools, but doing so has created some embarrassing issues for the company. A case in point is its handling of Reuven, a full-time Python trainer who has taught programming courses for companies in the United States, Europe, Israel, India, and China.

Reuven tried advertising his courses on Facebook but ultimately got distracted by other things and didn’t give it much attention. Some years later, after deciding to use Facebook advertising in earnest, he was surprised to see his account had been suspended. Reuven appealed the suspension, only to be told he was banned for life.

After reaching out on LinkedIn, Reuven discovered others who had similar issues with Facebook advertising, with the company’s bots apparently thinking that teaching Python programming and the Pandas data analysis library was synonymous with dealing in exotic animals.

At this point, Reuven reached out to friends who worked at Meta:

I’ve been in the computer industry for a while, and have no small number of contacts. Three friends who have worked at Meta (two current, one past) offered to check into this for me.

The first friend looked into it, and found that there was nothing to be done. That’s because Meta has a data-retention policy of only 180 days, and because my account was suspended more than one year before I asked people to look into it, all of the evidence is now gone. Which means that there’s no way to reinstate my advertising account.

Now, I’m not a big believer in “there’s nothing to be done,” especially when it comes to companies and software, both of which are created and managed by people. But this friend seemed convinced, so I moved onto a second one. He didn’t get any further. And the third friend? He didn’t seem to make any headway, either.

It is surprising — to say the least — that Meta’s AI moderation tools are so obtuse and that the company’s response is equally so.

Nvidia is one of the leading companies in the AI revolution, with its chips used to power a wide range of AI applications and developments. Meanwhile, Foxconn is one of the leading manufacturers for various computer and smartphone makers.

According to TechCrunch, the two companies are working together to accelerate autonomous vehicles and machines, as well as industrial robots. The “AI factories” the two companies plan to build will be advanced supercomputing data centers used to help develop and improve AI.

“We’re building this entire end-to-end system where on the one hand, you’re building this advanced EV car…with an AI brain inside that allows it to interact with drivers and interact with passengers, as well as autonomously drive, complemented by an AI factory that develops a software for this car,” said Nvidia CEO Jensen Huang at a joint event. “This car will go through life experience and collect more data. The data will go to the AI factory, where the AI factory will improve the software and update the entire AI fleet.”

“This is a factory that takes data input and produces intelligence as an output,” said Huang, as Foxconn CEO Young Liu nodded in agreement. “In the future, every industry, every company will have an AI factory.”