Dave Sobel

Small and mid-sized businesses are increasingly curious about how to leverage artificial intelligence (AI) to enhance their operations. As they explore the potential of AI, they are asking critical questions about implementation, automation, and customer engagement. Experts Hunter Jensen and Barbara Paluszkiewicz discuss the challenges these businesses face, particularly regarding data readiness and cybersecurity. They emphasize the importance of understanding specific use cases and ensuring that companies have the necessary infrastructure and security measures in place before deploying AI solutions.

Hunter highlights that many organizations, especially those that have been around for a while, struggle with data quality and governance. He notes that businesses often have “skeletons in their data closets,” which can hinder effective AI deployment. Barb adds that for companies to safely utilize AI, they must have robust cybersecurity measures, including data loss prevention and user training. This foundational work is crucial to protect sensitive information and ensure compliance with regulations.

The conversation also touches on the rising costs and complexities associated with private AI infrastructure. Hunter explains that while public large language models (LLMs) can be effective for certain tasks, businesses dealing with confidential information may benefit from self-hosted models. He points out that, in some cases, hosting AI solutions locally can be more cost-effective than relying on third-party services, especially as usage scales up.

Finally, the discussion shifts to the evolving landscape of investment in the managed service provider (MSP) sector. Barb notes that many small MSPs are undervaluing their businesses, often expecting high multiples that may not be realistic. Hunter observes a trend where venture capitalists are less willing to invest in pre-revenue companies, pushing entrepreneurs to demonstrate customer traction before seeking funding. Both experts agree that the MSP community is adapting to these changes, with new models of community-driven investment emerging to support smaller businesses.

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