Why enterprise CIOs need to plan for Microsoft gen AI

Why enterprise CIOs need to plan for Microsoft gen AI

Enterprises with strong experience in open source may look to open foundation models as an option to reduce costs, but Curran cautions against equating open weight models with the more familiar open source ecosystem. He predicts enterprises will adopt them though, including using them in curated environments provided like Azure.

“I’ve seen a lot of interest in the open source models, but not many in production,” says Boyd, although customers are starting to use small models like Microsoft’s own Phi series. “But it’s largely early days. I haven’t seen mass adoption.”

Beyond simplifying setting up and running open weight models, using them on a platform like Azure has an added benefit: Microsoft’s model content safety service is “on and integrated by default with Azure Open AI Services, but it’s also on by default with all our open source models as well,” he adds.

Alternatives to Apache Superset That
Alternatives to Apache Superset That’ll Empower Start-ups and

After the excitement and experimentation of last year, CIOs are more deliberate about how they implement gen AI, making familiar ROI decisions, and often starting with customer support. “It’s a cost most organizations have but don’t like paying for, yet they still want to provide a quality experience,” he says. Reduced call times and escalations are obvious benefits as well.

These more vertical, task specific, integrated gen AI offerings may contribute more than generalist productivity copilots because people won’t need to find uses and then remember to include them in their workflow. But the most popular copilots can perform strongly: Virgin Atlantic, for instance, reports efficiency gains of 14 minutes per day.

But not all copilots necessarily provide the same value. Curran suggests security copilots may not provide significant extra value on top of existing tools in Microsoft Defender, at least without extra training. But the Excel Copilot was a surprise hit at Virgin Atlantic. “People absolutely love that Copilot will automatically tell you if you have data inconsistencies in the way you’re filling out forms,” says Walker. He describes how Copilot can warn if, say, you’re adding a duplicate filter in lower case instead of upper case, and fix it. “It’s like having someone look over your shoulder as you’re doing it.”

The Teams Copilot to summarize meetings and provide next steps is almost universally popular, too. “You get into a room with 15 people and you’re not focusing on who’s taking the minutes or whether you need to be clear enough in allocation and make sure everyone understands what the output is,” says Walker. “You’re focusing on the meeting itself, and you’re more present in the room because you know Copilot is behind you recording and transcribing.”

An Introduction to Apache Superset: An Open Source BI solution
An Introduction to Apache Superset: An Open Source BI solution

Even this pre-built Copilot needs preparation before enabling. Multilingual organizations where staff speak in both their native languages and a common language like English or Mandarin will need to monitor quality of transcriptions and translations more carefully. And if recording meetings isn’t already common in the organization, CIOs need to consult with legal and data protection teams on retention, auditing, and deletion policies because of potential issues around discovery.

A data leakage plan helps here too. “As soon as you record something, it becomes a form of data and needs classification and a place in the organization,” Walker says. “But equally, you need to know whether it’s appropriate to create that data in the first place.”

While CIOs need to maintain financial discipline and track usage of gen APIs with the now familiar ‘pay as you go’ model, especially with September budgeting season looming, they also need to play a long game warns Mickey North Rizza, group VP, Enterprise Software at IDC. “It’s going to cost you a lot of money,” she says. “CIOs may complain they’re not getting enough out of it, but the first time you got an iPhone, nobody knew what to do with it.”

Whether used as an assistant, advisor, or an agent, she expects gen AI’s optimized access to information to reduce multi-step business processes to real-time systems with far fewer steps. But experimentation to achieve significant results takes time.

Welcome Superset
Welcome Superset

In the meantime, Boyd notes, OpenAI prices have significantly reduced. “In the year and a half since Azure OpenAI Services has been available, ChatGPT 4 has fallen by 12 times while being six times faster,” he says.

Phased deployments aren’t just about cost, security, or compliance concerns, but capturing the right feedback to manage them well and support users properly. Training is key, even when considering gen AI skills in hiring, as is being willing to accept the simplified processes gen AI can produce. Troublingly, there’s a considerable disconnect between what leaders think their employees are ready for with gen AI and what staff feel prepared for.

Forrester found 59% of leaders believe they’ve given staff sufficient training, but only 45% of employees say they’ve had any formal training. The most successful training covers not just staff roles but their workflows. There’s enormous enthusiasm for gen AI but engagement quickly drops off if they don’t have the time to explore it and learn how to get useful results for their work, Wong says.

“If you don’t use the technology to fundamentally rethink processes, and you just layer more AI work over existing processes, you don’t get the best benefit out of it,” he says. “You have to rethink the underlying processes, and have training and ongoing education because these technologies are moving very quickly. The paradox is employees still want it despite the fact it’s hard for them to ingrain generative AI into their work routines, and that in some cases it’s underwhelming based on their expectations.”

CIOs may then want to consider how organizations adopt low code tools, where encouraging bottom up enthusiasm, experimentation, and sharing of growing expertise helps spread usage across the business. Both Microsoft and Virgin Atlantic report good results from structured training that includes time to experiment. Walker refers to “guided play sessions” and users were encouraged to share what worked with their peers. “They can go out as trusted users into the environment and say to people this isn’t scary,” he says.

CIOs should also remember gen AI is just one of many changes organizations are asking staff to absorb. The rate of change enterprise workers are expected to adapt to is up to three times what it was in 2010, Curran warns. “Businesses have not increased their ability to support those changes with the same speed,” he says. Adding resources to support employees through these changes will be as important for succeeding with gen AI as getting the technology right.

That includes IT teams themselves, who need to prepare for gen AI to continue developing at this speed. Vladimirskiy passes on Microsoft’s advice to software partners creating their own gen AI products. “Everyone should have the expectation that by the time you build something, you’re going to have to scrap it and start again,” he says. “The value for companies is maybe not so much the outcome of the product they’re building, but the creation of the expertise within the organization, to be able to leverage it in the future when AI becomes much more capable than it is today.”

Apache’s second quarter production zooms

The Apache Corp.’s $4.5-billion acquisition of the Callon Petroleum Co. of Houston was a major feature of its second quarter as its American production of 139,500 barrels per day was up by 67 percent from the first quarter.

“Capital expenditures were lower than expected, mostly due to timing of spend,” President-CEO John Christmann said. “Production and costs were significantly better than expected on a barrel of equivalent basis after adjusting for asset sales and discretionary natural gas and natural gas liquids curtailments.

“Our Permian Basin continues to perform at a high level and we marked our sixth quarter in a row of meeting or exceeding U.S. oil production guidance.”

Christmann said Apache saw a positive contribution from new wells, improved results from re-completions and continued strong base production, which particularly benefitted from the implementation of several new water injection projects.

“We are also beginning to see a decrease in off-line oil volumes waiting on workover as we moderate the drilling rig count to free up workover rig resources,” he said.

The president-CEO said operations were relatively smooth in the North Sea with better-than-forecast facility run time driving higher production.

“Our ongoing focus in the North Sea is rightsizing our cost structure for late life operations,” he said. “In Suriname our partner, Total, recently announced that it had secured the floating production storage and off-loading hole for our first offshore development and we remain on track for a final investment decision before year-end and first oil in 2028.”

Christmann said Apache’s preliminary estimate is that it can drill a standardized two-mile lateral for roughly $1 million less than Callon was spending in 2023.

“In the U.S. we will average nine to 10 rigs for the remainder of this year, consisting of approximately five rigs in the Delaware and four in the Midland,” he said. “We plan to run three to four frac crews and complete about 90 wells by year-end.

“This sets the stage for strong oil growth in the second half of the year. Accordingly we are increasing fourth quarter U.S. oil guidance to 150,000 barrels per day, which is up 1,500 barrels per day after adjusting for the impact of asset sales closed in June. This represents organic production growth of roughly 8 percent compared to the second quarter.

“We also expect an increase in natural gas and NGL production driven primarily by fewer discretionary curtailments than in the first half of the year.

“In Egypt we expect a continuation of the operational progress that we made in our second quarter.”

Executive Vice President-Chief Financial Officer Stephen J. Riney said Apache had consolidated net income of $541 million or $1.46 per diluted common share.

“During the first half of the year we generated roughly $200 million of free cash flow and returned $311 million to shareholders, nearly half of which consisted of share repurchases,” Riney said.

“That’s a lot compared to the $200 million of free cash flow, but we like buying at those share prices and we anticipate free cash flow will be much higher in the second half of the year.”

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It’s unclear how many enterprises employ Apache OFBiz as many organizations might use it internally, but based on public data known users include large organizations such as IBM, HP, Accenture, United Airlines, Home Depot, and Upwork. Some third-party commercial applications, such as Atlassian JIRA, also use OFBiz modules. The project is used globally and across many industries, but over 40% of known users are based in the US.

The Open Web Application Security Project (OWASP) recently updated its list of top 10 open source security risks for enterprises, with known vulnerabilities topping the list.

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New critical Apache OFBiz vulnerability patched as older flaw is actively exploited

It’s unclear how many enterprises employ Apache OFBiz as many organizations might use it internally, but based on public data known users include large organizations such as IBM, HP, Accenture, United Airlines, Home Depot, and Upwork. Some third-party commercial applications, such as Atlassian JIRA, also use OFBiz modules. The project is used globally and across many industries, but over 40% of known users are based in the US.

The Open Web Application Security Project (OWASP) recently updated its list of top 10 open source security risks for enterprises, with known vulnerabilities topping the list.

The new flaw is located in the override view functionality and allows unauthenticated attackers to access sensitive and restricted endpoints using specially crafted requests. This can pave the way for remote code execution.

New critical Apache OFBiz vulnerability patched as older flaw is actively exploited

It’s unclear how many enterprises employ Apache OFBiz as many organizations might use it internally, but based on public data known users include large organizations such as IBM, HP, Accenture, United Airlines, Home Depot, and Upwork. Some third-party commercial applications, such as Atlassian JIRA, also use OFBiz modules. The project is used globally and across many industries, but over 40% of known users are based in the US.

The Open Web Application Security Project (OWASP) recently updated its list of top 10 open source security risks for enterprises, with known vulnerabilities topping the list.

The new flaw is located in the override view functionality and allows unauthenticated attackers to access sensitive and restricted endpoints using specially crafted requests. This can pave the way for remote code execution.

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