Today: Neo4j co-founder and CEO Emil Eifren explains how Klarna used graph databases to chart its own enterprise software path, Oracle buries its head further in the sand as customers start asking about two recent security breaches, and the latest funding rounds in enterprise tech.
Today: Tines co-founder and CEO Eoin Hinchy talks about workflow automation and agentic AI skepticism, Oracle Cloud customers push back against its claim that none of their data was stolen, and the latest enterprise moves.
Today: why experiments with enterprise AI apps are increasingly moving outside corporate walls, how a really weird glitch almost took down the internet, and this week's enterprise moves.
Eric Boyd, corporate vice president, engineering, lays out why Microsoft thinks Azure AI Studio could get more enterprise users off the sidelines Wednesday at Build. (Credit: Dan DeLong for Microsoft)
Welcome to Runtime! Today: why experiments with enterprise AI apps are increasingly moving outside corporate walls, how a really weird glitch almost took down the internet, and this week's enterprise moves.
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SEATTLE — While consumer-oriented AI devices and apps still feel like a solution looking for a problem, business customers have different needs and expectations when interacting with their suppliers. Now that companies have had over a year to kick the tires on enterprise AI app-building services, this could be the year that businesses who preferred to keep those initial experiments in-house gain the confidence to change how they interact with customers.
That's according to Microsoft's John Montgomery, corporate vice president for program management in Azure AI. "I would say a year ago, most of the builds that we were seeing were inward facing. Now we're increasingly seeing ones … where they are very much customer-facing," he said in an interview at Microsoft Build.
Lots of companies have been talking about using generative AI technology to summarize meetings or review contracts, a scenario where if something goes wrong it's correctable and there's no impact on a customer.
But Vodafone recently used Azure OpenAI to improve its TOBi virtual assistant, and it has been able to quickly understand which issues customers need resolved 50% better than an earlier version.
H&R Block is currently working with Azure OpenAI to build a new service that could "basically take your shoebox of receipts and forms and scan them in and extract the info, or take the PDFs and extract all the relevant information and populate your tax forms," Montgomery said.
However, companies like Vodafone and H&R Block "are the most sophisticated customers," he said. If Microsoft expects to see its AI investments pay off, it will need to get the rest of the corporate world to roll out external-facing AI apps without fear of damaging their relationships with customers.
Early generative AI adopters preferred to work directly with the foundation models and manage everything themselves, Montgomery said, sort of akin to how early cloud infrastructure adopters got started 15 years ago with basic compute and storage services.
But there are a lot of companies with plenty of money that lack the skills required to handle that kind of chore effectively, and are willing to pay their infrastructure provider to do more of the heavy lifting.
Now that Azure AI Studio — which does a lot of that heavy lifting — is generally available as of this week at Build, Microsoft expects the companies that are interested in AI but need help building safe and reliable apps to enter the chat.
Azure AI Studio also makes it easier for companies to work with several different models as part of their application, Montgomery said, which could make it easier for mere mortals to adopt low-cost or open-source foundation models.
Microsoft had "a couple hundred" customers using AI in production in January 2023, when Azure Open AI became generally available, Montgomery said. Now it has 53,000 customers using its AI services across Azure, which is incredible growth but a relatively small portion of its business: for example, Satya Nadella said on its last earnings call that 330,000 Microsoft customers used AI tools across its Power Platform.
As foundation models mature and competition to OpenAI gets real, it seems likely that a lot of enterprise AI customers will choose their AI provider based on the strength of the tools they can use to create AI applications.
Microsoft has a strong position with developers thanks to widely used tools like GitHub and Visual Studio Code, and will need to build, maintain, and improve similar tools for AI developers to keep its advantage.
Your roots are showing
No one seems to understand why a crucial link in the system that allows computers to find each other on the internet fell out of sync with its partners for several days this week, which could have made the whole thing difficult to use if left unchecked. Ars Technica has a detailed overview of the problem, which involved one of the 13 root servers at the lowest levels of the internet.
Those 13 servers help operate the DNS protocol, which allows your computer to find the specific server that hosts runtime.news when you type it into a browser. For some reason, one of those 13 servers operated by Cogent stopped updating its records as changes were made to the other 12 servers, a process that in normal times is pretty much instantaneous.
The slow root server was a whole three days behind the other 12, according to the engineer who first flagged the issue on Tuesday, which means it missed a lot of changes. The issue was fixed by the end of the day on Wednesday, and it looks like the glue that holds the popsicle sticks together at the core of the modern internet will make it through the holiday weekend.
Ascension continues to grapple with a ransomware attack from earlier this month, with delays in patient treatment and record-keeping on paper, according to The New York Times.
Thanks for reading — Runtime is off for the holiday weekend, see you Tuesday!
Tom Krazit has covered the technology industry for over 20 years, focused on enterprise technology during the rise of cloud computing over the last ten years at Gigaom, Structure and Protocol.
Today: Neo4j co-founder and CEO Emil Eifren explains how Klarna used graph databases to chart its own enterprise software path, Oracle buries its head further in the sand as customers start asking about two recent security breaches, and the latest funding rounds in enterprise tech.
Today: Tines co-founder and CEO Eoin Hinchy talks about workflow automation and agentic AI skepticism, Oracle Cloud customers push back against its claim that none of their data was stolen, and the latest enterprise moves.
Model Context Protocol (MCP) was introduced last November by Anthropic, which called it "an open standard that enables developers to build secure, two-way connections between their data sources and AI-powered tools." After kicking the tires for a few months, vendors are jumping on board.