While talk is hot about <a target="_blank" href="https://www.entrepreneur.com/business-news/meta-microsoft-ceos-justify-heavy-ai-spending-amid-deepseek/486374">DeepSeek</a> and what it means for <a target="_blank" href="https://www.wired.com/story/openai-deepseek-stargate-sam-altman/">U.S.-China relations</a> (and AI’s trajectory as a whole) some skeptics question its broader impact. We spoke with <a target="_blank" href="https://www.linkedin.com/in/bassam-aoun-12000220/">Bassam Aoun</a>, Vice President, AI/ML of <a target="_blank" href="https://www.docketai.com/solutions/instant-sales-answers">DocketAI,</a> the developer one of the world&#39;s first AI sales engineers, to discuss what’s revolutionary (and not) about <a target="_blank" href="https://techcrunch.com/2025/01/29/anthropics-ceo-says-deepseek-shows-that-u-s-export-rules-are-working-as-intended/">China’s DeepSeek</a>. A drop in the bucket: &quot;There has been some talk recently about AI plateauing, why OpenAI and Anthropic haven&#39;t released anything,&quot; says Aoun. &quot;Innovation doesn&#39;t always happen weekly. Sometimes it happens in a stepwise function or exponentially.&quot;While many brim with excitement for <a target="_blank" href="https://www.vox.com/future-perfect/397539/deepseek-artificial-intelligence-chatgpt-openai-china">DeepSeek</a>, Aoun sees this progress as a more natural part of the innovation cycle. &quot;It’s notable, but not revolutionary. It’s a drop in the bucket overall. We’ve been on this march for many years, decades, and we still have a lot to go,&quot; Aoun says, adding his own ideas about what’s to come, &quot;It’s a very long way for AI to make its impact or to become ubiquitous.&quot;Short generations: Aoun notes that AI development cycles move quickly, making direct comparisons difficult. &quot;Time generations [for model releases] in AI are very short,&quot; Aoun points out, while discussing the close windows between previous uodates from Anthropic and OpenAI. &quot;We expect a certain percentage of increased efficiency every seven to eight months because we have spent enough time engineering fine-tuning cycles. [DeepSeek] has the same quality at a much lower cost, so it’s in a different generation in terms of time.&quot;

China: China’s investment in AI is only set to accelerate following DeepSeek’s debut. &quot;The <a target="_blank" href="https://www.theguardian.com/technology/2025/jan/28/we-tried-out-deepseek-it-works-well-until-we-asked-it-about-tiananmen-square-and-taiwan">Chinese government</a> is going to throw money at DeepSeek,&quot; says Aoun. But he emphasizes that the U.S. remains the dominant force in AI development. &quot;The USA has a much better training budget, bigger access to infrastructure, and has built millions of <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-31/us-probing-whether-deepseek-got-nvidia-chips-through-singapore">high-end AI chips</a>. We have a longer runway and more resources in terms of AI infrastructure technology.&quot;

The impact of DeepSeek on AI innovation cycles might be less than we think

Vice President, AI/ML

It’s notable but not revolutionary. It’s a drop in the bucket. We’ve been on this march for many years, decades, and we still have a lot to go. It’s a very long way for AI to make its impact or to become ubiquitous.

The USA has a much better training budget, bigger access to infrastructure, and has built millions of high-end AI chips. We have a longer runway and more resources in terms of AI infrastructure technology.

<ul><li>DeepSeek sparks debate on its impact on U.S.-China relations and AI&#39;s future trajectory.</li><li>Bassam Aoun of DocketAI views DeepSeek as a natural step in AI&#39;s ongoing innovation cycle.</li></ul>

No AI tool stands alone on its own. As we witness DeepSeek’s launch and strong overlaps between <a target="_blank" href="https://www.nytimes.com/2025/01/29/technology/meta-deepseek-ai-open-source.html">open source models</a>, these tools have started to become their own <a target="_blank" href="https://www.glideapps.com/solutions">interconnected ecosystems</a>. The merging of AI tools is changing its <a target="_blank" href="https://hbr.org/2025/01/research-gen-ai-changes-the-value-proposition-of-foreign-remote-workers">inherent value proposition</a> to businesses and making over what it means for businesses to operate and serve customers. We spoke with <a target="_blank" href="https://www.linkedin.com/in/john-enoh/">John Enoh</a>, President and CEO at global IT consulting firm <a target="_blank" href="https://www.nvit.tech/our-team">NVIT</a>, about the emergence of AI ecosystems, <a target="_blank" href="https://www.cnbc.com/2025/01/28/us-navy-restricts-use-of-deepseek-ai-imperative-to-avoid-using.html">privacy concerns</a>, and the uncertainties surrounding new AI models.Value proposition: As AI ecosystems take shape, businesses must rethink their <a target="_blank" href="https://www.businesswire.com/news/home/20241021957700/en/Gartner-Identifies-Four-Emerging-Challenges-to-Delivering-Value-from-AI-Safely-and-at-Scale">value propositions</a>—not just in terms of AI’s capabilities but how they will leverage them to serve customers.&quot;We&#39;re thinking about innovation beyond just search,&quot; says Enoh. &quot;<a target="_blank" href="https://www.nytimes.com/2025/01/31/technology/deepseek-chinese-propaganda.html">DeepSeek</a> may introduce many things people are not aware of and they may create an AI ecosystem. It&#39;s all going to be about innovation, and people will have to look at the value proposition they are getting.&quot;In light of DeepSeek and how it relates to his own company, he adds, &quot;As a startup, I want to know what I will gain and how I will serve my customer.&quot;

An ecosystem of everything: &quot;I see they are going to transform it into an AI ecosystem of everything, based on tests and information from WeChat and TikTok,&quot; explains Enoh. But beyond the ecosystem itself, the infrastructure and hosting considerations for these models will be crucial for businesses.&quot;I was studying the R1 model version <a target="_blank" href="https://www.computing.co.uk/news/2025/ai/microsoft-hosts-controversial-deepseek-r1-ai-model-azure">integrated into Microsoft Azure</a>, and they say you can host it in the region you want. Beyond hosting, looking at the model itself is key. How does the model behave? These are key considerations, especially for companies serving U.S. customers.&quot;Privacy and censorship concerns: While AI ecosystems promise increased efficiency and accessibility, <a target="_blank" href="https://www.politico.eu/article/italy-blocks-chinas-deepseek-over-privacy-concerns/">concerns around privacy</a> and censorship remain pressing. Enoh gives his clear outlook, &quot;There are a lot of compliance issues to consider. <a target="_blank" href="https://mashable.com/article/deepseeks-privacy-policy-your-personal-data">Data consistency</a> and transparency are important, as well as security measures. Personally, my trust is not there yet.&quot;

DeepSeek and the dawn of interconnected AI ecosystems

President and CEO, Chief AI/ML and Cloud Solution Architect

We're thinking about innovation beyond just search. DeepSeek may introduce many things people are not aware of and they may create an AI ecosystem.

There are a lot of compliance issues to consider. Data consistency and transparency are important, as well as security measures. Personally, my trust is not there yet.

<ul><li>DeepSeek&#39;s launch highlights the emergence of interconnected AI ecosystems, transforming business operations and customer service.</li><li>The integration of AI models into platforms like Microsoft Azure raises important infrastructure and hosting considerations.</li><li>Privacy and censorship concerns persist, with compliance, data consistency, and security measures being crucial for trust in AI ecosystems.</li></ul>

The backstory: Colombian President Gustavo Petro <a target="_blank" href="https://www.cnn.com/2025/01/26/politics/colombia-tariffs-trump-deportation-flights/index.html">blocked a U.S. military flight</a> this weekend carrying migrants being deported by the Trump administration, accusing the U.S. of treating Colombian migrants like criminals.Supply chain impact: Trump responded with threats of a 25% tariff on Colombian goods, which could have risen to 50% within a week. The tariffs, which function as a tax on imported goods, could increase U.S. consumer prices on items like <a target="_blank" href="https://www.axios.com/2025/01/26/trump-colombia-tariffs-coffee">coffee</a>, crude oil, and cut flowers. Colombia <a target="_blank" href="https://www.axios.com/2025/01/26/trump-colombia-tariffs-coffee">supplies 20% of the U.S.'s coffee imports</a> and is the second-largest source after Brazil. The potential tariffs were part of Trump&#39;s broader economic strategy, using the International Economic Emergency Powers Act of 1977.A resolution: Colombia <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-27/us-to-hold-off-on-colombia-tariffs-white-house-says">agreed to accept</a> deported migrants on U.S. military planes after initially blocking two flights. The agreement included &quot;unrestricted acceptance&quot; of deportees.Why it matters: The situation highlighted the speed of potential economic devastation in a new administration that moves fast and uses every bargaining chip available. Further downstream, a fast and drastic increase in the price of goods like coffee threatens Colombian workers&#39; livelihoods, as well as every stage of the supply chain in between producer and consumer. The episode likely served as a warning to other countries, <a target="_blank" href="https://www.wsj.com/world/americas/trump-aides-want-to-hit-mexico-canada-with-tariffs-before-talks-3ff27f14">particularly Mexico</a>, which Trump hinted could face similar tariffs.We&#39;ll be touching base with logistics experts to discuss global tariff mitigation strategies and how they plan to stay resilient as politics continues to influence trade.

Deportation flights, Colombian supply chain tariffs, and the fragility of coffee

<ul><li>Colombian President blocks U.S. military, accusing the U.S. of criminalizing Colombian migrants</li><li>In response, Trump threatens a 25% tariff on Colombian goods, potentially increasing to 50%, impacting U.S. consumer prices and destabilizing the supply chain.</li></ul>

Tariff tensions: Trump has announced a <a target="_blank" href="https://www.automotivedive.com/news/trump-tariffs-feb-1-china-canada-mexico/737993/">10% tariff on Chinese imports</a>, effective February 1. This move is part of a larger strategy to tackle U.S. trade challenges and is significantly lower than the 60% tariff he mentioned during his campaign.The breakdown: The tariffs are a strategic tool in Trump&#39;s economic playbook, aimed at leveraging negotiations with China on key issues like Taiwan and trade. Despite his <a target="_blank" href="https://www.channelnewsasia.com/world/us-china-trump-would-rather-not-put-tariffs-imports-4894331">preference to avoid tariffs</a>, Trump views them as a &quot;tremendous power&quot; in discussions with Chinese leader Xi Jinping. The tariffs also serve as a potential negotiating tool ahead of the 2026 review of the United States-Mexico-Canada Agreement.Global business impact: The proposed tariffs could trigger retaliatory measures from China, affecting U.S. companies and potentially reducing consumer spending power by up to $78 billion, according to a National Retail Federation study. U.S. companies operating in China might face changes to export control and anti-foreign sanctions laws, potentially leading to legal challenges or blacklisting if they withdraw from deals with Chinese manufacturers.Logistics and supply chain: As tensions rise, global businesses are bracing for <a target="_blank" href="https://www.glideapps.com/news/food-logistics-ai-warehousing-mclane-global-rob-stevens">disruptions in logistics and supply chains</a>. The tariffs could lead to increased costs and delays, impacting the flow of goods and services across borders. Experts suggest that China may be better positioned to withstand these tariffs due to its strengthening relationships with countries not aligned with the U.S.Consumer impact: Economists warn that the tariffs could lead to higher prices for American consumers, as companies pass on the increased costs. The situation underscores the ongoing tensions between the US and its top trading partners, highlighting the complex dynamics of international trade relations.What we&#39;re tracking: This is a developing story, and the final impact is likely to change as Trump brings China closer to the negotiating table. We&#39;ll follow up with more as it progresses, and bring in expert commentary from those most closely affected in the business world.

Trump announces 10% tariff on Chinese imports, likely Feb 1

<ul><li>Trump announces 10% tariff on Chinese imports, effective February 1.</li><li>The tariffs are part of Trump&#39;s strategy to leverage negotiations with China on issues like Taiwan and trade</li><li>Economists warn of potential higher prices for American consumers as companies pass on increased costs due to tariffs.</li></ul>

Blind spots: Global supply chains are barely keeping their heads above water amid <a target="_blank" href="https://www.npr.org/2025/01/20/nx-s1-5268672/santa-ana-winds-la-fire-risk">unprecedented natural disasters</a>, <a target="_blank" href="https://www.e3g.org/news/trends-in-climate-and-geopolitics-for-2025/">geopolitical tensions</a>, and Trump&#39;s promise to <a target="_blank" href="https://www.aljazeera.com/economy/2025/1/20/no-tariffs-on-day-1-but-trump-promises-to-drill-baby-drill">impose tariffs</a> on foreign goods. Logistics leaders responsible for meeting consumer demand have to prepare for anything.&quot;A major blind spot in our industry was tariffs, and their effect on the supply chain,&quot; says Rob Stevens, Vice President of 3PL at <a target="_blank" href="https://mclaneglobal.com/">McLane Global</a>. &quot;The incoming administration has said that Chinese and Mexican tariffs will jump to as much as 20%. Nobody knows exactly what is going to happen, but it’s important to plan ahead, especially for our low-margin commodities.&quot;McLane Global is a supply chain and logistics company specializing in food sales and distribution services, with offices in Texas, California, and Utah. They offer 360 3PL warehousing, inventory management, and customs support.Crisis management: The question is how to manage fallout while maintaining efficiency and cost-effectiveness. McLane Global aims to get ahead of the curve by developing <a target="_blank" href="https://mclaneglobal.com/services/logistics/warehousing/">Warehouse Management Systems</a> with native and <a target="_blank" href="https://www.glideapps.com/solutions">plug-in AI solutions</a> to drive productivity and visibility for internal teams and customers. Logistics efficiencies come into play when climate catastrophe and disaster response require quick help. But in order to meet the most immediate needs, logistics providers have to think much further ahead. &quot;Our strategy starts with preparation. We maintain strong partnerships with major suppliers, relief groups, food banks, and government agencies. This allows us to mobilize resources quickly while maintaining a direct line on the localized needs in the areas that are affected by disasters,&quot; says Stevens.

Humanizing AI: While AI offers promising advancements for shipment tracking, there’s a growing awareness of its limitations. Stevens emphasizes the importance of balancing innovation with human expertise: &quot;Our commitment to the human element helps us keep both feet planted firmly on the ground. We strive to culminate a culture that prioritizes a level of skill and expertise that only a great team can bring to the table.&quot;

Rising costs, new tariffs, and how 3PL keeps goods moving with AI

Vice President of 3PL

Our commitment to the human element [of AI] helps us keep both feet planted firmly on the ground. We strive to culminate a culture that prioritizes a level of skill and expertise that only a great team can bring to the table.

A major blind spot in our industry was tariffs, and their effect on the supply chain.

<ul><li>Global supply chains face challenges from natural disasters, geopolitical tensions, and new tariffs.</li><li>McLane Global, a logistics company has developed AI-driven warehouse management systems to enhance productivity and visibility during crises.</li></ul>

Joining a company as a fractional CXO offers flexibility and innovation, but it also comes with hurdles – no legacy knowledge, no established trust, and no clear roadmap for what success looks like. More companies will continue to turn towards <a target="_blank" href="https://app.contentful.com/spaces/n3rcstr5ldte/entries/4khTv3grMERjrd1DkmrR99">fractional C-suite talent in 2025</a>, increasing the conversation around what actually works in a fractional role.Understanding systems, tools, and team building are all facets of executive leadership that make or break a new hire in a fractional role. We gathered insights from <a target="_blank" href="https://www.linkedin.com/in/frolovamaria/">Maria Frolova</a>, a Fractional CFO for TrueLead LMS, and <a target="_blank" href="https://www.linkedin.com/in/jason-c-scoggins-66b7399a/">Jason Scoggins</a>, a Fractional Operations expert, to understand their strategies, challenges, and outlook for fractional leadership in 2025:Building Trust: For Frolova, building trust starts with understanding each company’s unique needs. &quot;As you are getting up to speed, focus on listening versus making specific recommendations right away,&quot; she advises. &quot;Meet as many people as possible…you can&#39;t be a thought partner unless you earn your stripes.&quot; She stresses the importance of empathy and patience, especially given the CFO’s role in managing conflicts like balancing cash flow and stakeholder expectations.Scoggins emphasizes the need for transparency in communication with &quot;no surprises, just clear, concise updates&quot;. He also includes that he listens more than he speaks to learn about team dynamics, personalities, and current pain points. &quot;Then, I identify a quick win, something small but impactful I can deliver to show value to each individual or their department early on.&quot;Tools: Both Frolova and Scoggins highlight the importance of <a target="_blank" href="https://www.glideapps.com/data-sources">organizational tools</a> for managing multiple clients. Frolova merges her four calendars into one and uses simple AI assistants and spreadsheets to manage business development. However, she warns, &quot;Fractional work with several clients is not for everyone; no AI will help you if you can’t multitask.&quot;Scoggins relies on tools like Trello for task tracking and Slack for real-time collaboration. For <a target="_blank" href="https://www.glideapps.com/security-center">data security</a>, he ensures encrypted platforms like LastPass and secure file-sharing systems with strict permissions. &quot;The only thing worse than a missed deadline is a data breach,&quot; he notes, emphasizing adherence to industry-standard best practices.

Demonstrating ROI: Frolova notes that KPIs depend heavily on the client’s industry and stage but highlights recurring revenue, backlog, and business development events as her personal measures of success. For clients, she designs KPIs around core financial processes like vendor payments and budgeting.Scoggins measures success through efficiency, cost savings, and client satisfaction. &quot;If I’m driving new initiatives, I’ll look at conversion rates, customer retention, or any relevant sales metrics,&quot; he explains. He emphasizes the importance of net profitability and happy clients, adding, &quot;If I’m making them smile while hitting KPIs, I know I’m on the right track!&quot;Strategic Partners: Both experts agree that fractional roles are here to stay. Frolova sees growing interest among early-stage companies while Scoggins predicts that fractional hires will be the “secret sauce” for businesses in 2025. &quot;With the rise of agile workforces and remote collaboration, fractional roles are becoming integral to long-term strategy,&quot; he explains. Rather than being temporary fixes, he sees fractional executives as strategic partners contributing to sustained competitive advantage.

Trust on Day 1: what fractional CXOs can teach all new leaders

Fractional Ops Leader

...I identify a quick win, something small-but-impactful I can deliver to show value to each individual or their department early on.

Fractional CFO

As you are getting up to speed, focus on listening versus making specific recommendations right away. Meet as many people as possible…you can't be a thought partner unless you earn your stripes.

The allure of AI’s speed and efficiency dims in the face of the challenges companies face in harnessing its full power. As 2025 begins, industries are urgently working to capture invaluable tribal expertise and overhaul legacy systems, in hopes of reclaiming what has been lost and use AI to its full potential to stay ahead of competitors. Tribal knowledge: A major focus for the manufacturing industry in 2025 will be to document the expertise of long-term employees, often referred to as tribal knowledge. This informal, unwritten knowledge is critical for operating and maintaining machinery, some of which spans decades.&quot;Many companies in manufacturing are investing in tribal knowledge capture,&quot; explains <a target="_blank" href="https://www.linkedin.com/in/amarchheda">Amar Chheda</a>, a Senior Data Scientist. &quot;Employees with over five years of experience often hold vital knowledge in their heads that isn’t documented. Formalizing and centrally storing that knowledge will be a big area of investment.&quot;Without such efforts, companies risk losing this expertise when skilled operators leave. This knowledge is especially valuable for operating a mix of old and new machinery, where only seasoned employees know how to tweak and maintain equipment effectively.

Data silos: Beyond tribal knowledge challenges, many companies struggle with <a target="_blank" href="https://www.glideapps.com/data-sources">fragmented data systems</a> that hinder AI’s full potential. Chheda notes, “A lot of companies have data in silos. Systems often don’t talk to each other, so information is scattered. For example, data for one operation might be in one database, while data for another is stored elsewhere.” Centralizing data through solutions like Data Lakes allows organizations to track, store, and utilize data more effectively. However, smaller manufacturing companies often fail to capture essential sensor data—a key resource for leveraging AI.&quot;Sensor data is a gold mine,&quot; Chheda adds. &quot;But many smaller companies aren’t capturing it, which limits their ability to fully harness AI.&quot;Upskilling for AI Adoption: <a target="_blank" href="https://www.glideapps.com/ai">Adopting AI</a> requires more than technology—it demands a shift in <a target="_blank" href="https://www.glideapps.com/experts">workforce skills</a> and culture. &quot;One of the things that helps companies stand out is getting started with AI and upskilling their workforce,&quot; Chheda explains. &quot;There’s often a gap between the 1% of employees adopting AI and the 99% who don’t understand it. Educating and upskilling employees about AI’s advantages will be crucial for long-term success.&quot;

Outdated systems and lost knowledge stand between companies and their own potential

Senior Data Scientist

Many companies in manufacturing are investing in tribal knowledge capture. Employees with over five years of experience often hold vital knowledge in their heads that isn’t documented. Formalizing and centrally storing that knowledge will be a big area of investment.

A lot of companies have data in silos. Systems often don’t talk to each other, so information is scattered. For example, data for one operation might be in one database, while data for another is stored elsewhere.

<ul><li>Manufacturing industries in 2025 focus on documenting the expertise of long-term employees to prevent loss of critical operational knowledge.</li><li>Fragmented data systems hinder AI&#39;s effectiveness, prompting a push for centralized data solutions like Data Lakes.</li></ul>

Shifting dynamics in shipping costs, supply chain strategies, retail challenges, and healthcare regulations highlight the interplay between <a target="_blank" href="https://www.bloomberg.com/news/newsletters/2025-01-27/supply-chain-latest-trump-tariff-threats-against-colombia">economic pressures</a>, policy changes, and <a target="_blank" href="https://www.glideapps.com/news/food-logistics-ai-warehousing-mclane-global-rob-stevens">technological advancements</a>.Last mile: Despite recent rate hikes from FedEx and UPS, ground shipping costs are <a target="_blank" href="https://www.supplychaindive.com/news/fedex-ups-cowen-afs-q1-2025-parcel-index/738057/">expected to dip slightly in Q1 2025</a>, thanks to ongoing discounts amid fierce competition and low demand, according to the <a target="_blank" href="https://www.prnewswire.com/news-releases/new-year-same-stagnant-demand-q1-td-cowenafs-freight-index-302350526.html">TD Cowen/AFS Freight Index</a> and reporting from Supply Chain Dive. While shippers can still negotiate favorable rates, the future of these discounts is uncertain as carriers focus on tightening pricing controls. Even with discounts, holiday surcharges have cut into savings, with FedEx and UPS benefiting from increased surcharge revenue during peak season.Nearshoring: Mexico is rolling out a <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-21/how-mexico-is-creating-tax-cut-incentives-to-promote-nearshoring-incentives">$1.4 billion nearshoring incentive package</a> under President Claudia Sheinbaum&#39;s Plan México to boost its role in North America&#39;s supply chains. The initiative, which runs until 2030, allocates funds for companies investing in Mexico and aims to strengthen regional integration, create jobs, and increase domestic production. Unlike previous strategies, this package is open to both foreign and domestic companies across all sectors, marking a shift towards broader economic inclusion.Returning to normal: Retailers are struggling with a surge in returns, <a target="_blank" href="https://www.supplychaindive.com/news/retail-online-returns-reverse-logistics-challenges/737716/">expected to hit $890 billion in 2025</a>, largely due to online shopping habits like over-buying with the purpose of returning unwanted items. To combat rising costs and fraud, companies are tightening return policies, charging for return shipping, and <a target="_blank" href="https://www.glideapps.com/use-cases/inventory-management">using data analytics</a> to tailor strategies, all while trying to maintain customer satisfaction. The environmental impact of returns is also a concern, pushing retailers to explore more sustainable practices and leverage loyalty programs for better data collection.Device shortage: FDA&#39;s new medical device director, Michelle Tarver, <a target="_blank" href="https://www.medicaldesignandoutsourcing.com/fdas-tarver-pushes-for-mandatory-medical-device-shortage-reporting/">warns that the U.S. is at risk</a> of falling behind due to its lack of mandatory reporting on potential device shortages, unlike Europe, which recently implemented stricter rules. The current U.S. system relies on voluntary notifications, often leaving the FDA unable to act until shortages impact patient care. Tarver&#39;s call for change targets the new Congress under President Trump&#39;s second term, urging statutory authority and funding to align with international standards and better protect the healthcare system.We&#39;re following these stories and more. Check back for commentary from the industry&#39;s top thought leaders, discussing the macro and micro trends they&#39;re seeing in their fields.

Logistics Watch: Ground shipping costs drop, med device shortages, Mexican nearshoring, and more.

<ul><li>The trends you need to know from the voices you want to hear – at ever step in the supply chain.</li></ul>

Driving the news: As the Canadian economy shows signs of recovery, corporate leaders are increasingly looking to mergers and acquisitions to fuel growth. A <a href='https://kpmg.com/ca/en/home/insights/2024/10/2024-canadian-ceo-outlook.html#:~:text=Today,%20CEOs%E2%80%99%20outlook%20has%20tempered%20somewhat,' target='_blank'>KPMG survey</a> reveals that 90% of CEOs from large organizations are planning acquisitions within the next three years, with 4 out of 10 eyeing significant transactions.Zooming in: The increased M&amp;A activity comes at a time when Canada, like many countries, faces a challenging economic landscape, including a persistent <a href='https://insurely.ca/news/beyond-rate-cuts-why-alternative-measures-are-needed-to-solve-canadas-housing-crisis/' target='_blank'>housing crisis</a> and recent bouts of <a href='https://www150.statcan.gc.ca/n1/daily-quotidien/240917/dq240917a-eng.htm' target='_blank'>inflation</a>. However, interest rate cuts by central banks in Canada and the U.S. have injected new life into the markets, according to <a href='https://kpmg.com/xx/en/contacts/c/john-cho.html' target='_blank'>John Cho</a>, National Leader of KPMG in Canada's Deal Advisory practice. &quot;In fact, 2025 could be one of the busiest years for M&amp;A in quite some time,&quot; Cho said in the press release, citing the easing economic headwinds and a more inviting cost of capital which are coaxing companies and investors back to the bargaining table.The SMB move: In contrast to large corporations, SMBs are placing less emphasis on M&amp;A as their top growth strategy but continue to pursue deals. Only 34% of SMBs are considering significant acquisitions, while 43% anticipate acquisitions with moderate organizational impact. Additionally, 77% of SMB respondents are considering teaming with private-equity investors, and 78% said raising private capital is more important to their growth strategy than the public markets. “Private capital is an attractive option for growing businesses, but business owners aren't just looking for funding – they want true partners who understand and value their vision and purpose. There's more at stake to doing a deal nowadays,” <a href='https://kpmg.com/ca/en/home/contacts/b/neil-blair.html' target='_blank'>Neil Blair</a>, partner and President of KPMG in Canada Corporate Finance Inc., said in the press release.Why it matters: The shift towards private equity and the strategic use of M&amp;A are part of a broader trend in how Canadian companies are seeking to navigate an increasingly complex global market. By focusing on private equity, companies are able to sidestep some of the stringent demands and high costs associated with public markets. Additionally, leveraging M&amp;A allows them to quickly gain new capabilities, enter new markets, or consolidate their strengths in existing sectors.Bottom line: As Canada's economic landscape evolves, fueled by a mix of strategic M&amp;A activity and a resurgence in private equity, businesses are poised to redefine their growth trajectories in the post-pandemic world. With an increasingly acquisitive strategy, Canadian corporations are adapting to economic challenges and setting the stage for potential transformations in the coming years.

M&A fervor heats up among Canadian CEOs as economic prospects brighten

<ul> <li>Canadian CEOs are planning a surge in mergers and acquisitions over the next three years</li> <li>Interest rate cuts in Canada and the U.S. are revitalizing markets, making 2025 potentially a busy year for M&A</li> <li>While Enterprises are eyeing large opportunities, SMBs are focusing more on teaming up with private equity</li></ul>

AI shakeup: <a target="_blank" href="https://www.dallasnews.com/business/technology/2025/01/27/deepseek-sparks-ai-stock-selloff-nvidia-posts-record-market-cap-loss/">DeepSeek's surprise emergence</a> as a dominant player highlights a turning point in the global battle for AI supremacy -- a battle where, contrary to expectations, the speed of disruption is being driven not by the early industry leaders, but against them.Price and performance: The Chinese company has come from nowhere to challenge established AI heavyweights such as OpenAI and Nvidia. Its latest AI model, DeepSeek-R1, matches the performance of OpenAI&#39;s most advanced models but was developed at a fraction of the cost, <a target="_blank" href="https://www.axios.com/2025/01/27/deepseek-ai-china-venture-capital">raising concerns</a> about the substantial investments U.S. tech companies have made in AI infrastructure. Rubbing more salt into Big AI&#39;s wounds, DeepSeek&#39;s open-source model promotes transparency and accessibility, potentially setting new industry standards and pressuring companies like OpenAI to reconsider their proprietary approaches. This alone could disrupt existing business models and alter competitive dynamics in the AI sector.Business benefits: While the arrival of a powerful Chinese competitor sent the share price of more established players into a tailspin, the market shakeup could ultimately benefit smaller AI companies and, indeed, consumers. With lower model training costs, comes near-term cost benefit for advertising, travel, and other consumer app companies that use cloud AI services.Competitive praise: Meanwhile, the big names were putting a brave face on developments. Nvidia CEO Jensen Huang <a target="_blank" href="https://www.cnbc.com/2025/01/27/nvidia-calls-chinas-deepseek-r1-model-an-excellent-ai-advancement.html">praised DeepSeek's R1 model</a>, calling it an &quot;excellent AI advancement,&quot; highlighting its innovative use of widely available models and computing resources.Altman in overdrive: OpenAI CEO Sam Altman also put a positive spin on the development, <a target="_blank" href="https://x.com/sama/status/1884066337103962416">posting on X</a> that DeepSeek had delivered an &quot;impressive model, particularly around what they’re able to deliver for the price.&quot; Altman said OpenAI would accelerate the release of some upcoming products in response to the &quot;invigorating&quot; news.

DeepSeek's rise challenges AI giants like Nvidia and reshapes industry dynamics

<ul><li>DeepSeek emerges from near-nowhere as a dominant player in LLMs, challenging established leaders like OpenAI and Nvidia.</li><li>The Chinese company matches the top AI models&#39; performance at a fraction of the cost, while also promoting transparency and accessibility.</li><li>Industry leaders acknowledge the newcomer&#39;s strengths, with OpenAI promising to accelerate product releases in response.</li></ul>

We&#39;re just three weeks into the new year, and <a target="_blank" href="https://openai.com/index/introducing-operator/">AI's newest developments</a>, the second arrival of the Trump Administration armed with dozens of <a target="_blank" href="https://www.cnbc.com/2025/01/21/trump-says-hes-considering-10percent-tariff-on-china-beginning-as-soon-as-feb-1.html">impactful executive orders</a>, and even <a target="_blank" href="https://www.pewresearch.org/short-reads/2025/01/13/many-remote-workers-say-theyd-be-likely-to-leave-their-job-if-they-could-no-longer-work-from-home/">RTO not yet sorting itself out</a>, have business leaders wide awake. Companies trying to swim with the current are grasping for creative efficiencies, giving rise to fractional c-suite roles where they can acquire fresh talent and ideas without the commitment of a full-time role.We caught up with CXOs and some leading management consultants working to find fractional leadership to discuss what is changing the process for bringing on new executives.Cost-effective expertise: &quot;Fractional hires will be increasingly important in 2025 as organizations look for cost-effective, flexible expertise without long-term commitments,&quot; says <a target="_blank" href="https://www.linkedin.com/in/vanmurray/">Van Murray</a>, Managing Partner and Fractional CIO at <a target="_blank" href="https://www.goaeolus.com/">Aeolus</a>. &quot;This hybrid approach ensures continuity while meeting immediate and future needs.&quot;Strategic value vs. temporary fix: While some view fractional roles as stopgap measures, others see them as integral to long-term strategy. &quot;The experiences fractional hires gain by working with a diverse client set allows them to be a specialist while still bringing a generalist perspective amongst that specialty. It&#39;s a very unique role that creates value for companies in multiple ways,&quot; says <a target="_blank" href="https://www.linkedin.com/in/brandencobb1/overlay/photo/">Brandon Cobb</a>, Fractional CMO of Marketingexec

Challenges to the model: Others warn against oversimplifying the approach. &quot;The term &#39;fractional&#39; has become somewhat of a buzzword,&quot; cautions AJ Cheponis, Chief Solutions Officer for <a target="_blank" href="https://www.straightline.consulting/">Straightline Consulting Group</a>. He counters that companies might find executives &quot;quickly become disengaged with only a few hours of &#39;actual&#39; work each week.&quot;Future outlook: The demand for fractional executives is expected to grow. &quot;As business owners approach retirement and seek to optimize their operations, a fractional CMO emerges as an ideal solution for businesses seeking skilled business acumen without the financial constraints or operational requirements associated with a full-time role,&quot; explains Michael Larmon, Fractional CMO for <a target="_blank" href="https://whitecityconsulting.com/">White City Consulting Group</a>. While the model isn&#39;t suitable for every organization, Cobb sees the role as a positive step for offering “more flexibility and leanness for companies, while the fractional executive brings a unique knowledge and skill set that can spark innovation.”

This Year is Different: fractional CXOs weigh in on their changing roles in 2025

Managing Partner and Fractional CIO

Fractional hires will be increasingly important in 2025 as organizations look for cost-effective, flexible expertise without long-term commitments.

Fractional CMO

The experiences fractional hires gain by working with a diverse client set allows them to be a specialist while still bringing a generalist perspective amongst that specialty. It's a very unique role that creates value for companies in multiple ways.

<ul><li>Companies increasingly adopt fractional c-suite roles to gain expertise without long-term commitments</li><li>Business leaders see fractional hires as both strategic assets and temporary solutions</li><li>Some experts caution against the potential disengagement of fractional executives</li><li>Demand for fractional executives is expected to grow as businesses seek flexibility and innovation</li></ul>

Driving the news: Over 10 million freelancers and small businesses have signed up for LinkedIn’s Services Marketplace to expand their reach, signaling a significant shift in the global workforce. Launched just three years ago, the platform reports a 65% year-over-year increase in service requests, averaging eight per minute, LinkedIn said in <a href='https://www.linkedin.com/pulse/more-than-10-million-freelancers-small-businesses-tap-mary-yang-htfve/' target='_blank'>a blog post</a>.Why it matters: The uptick in freelance engagement comes at a time when <a href='https://www.glideapps.com/news/job-growth-in-september-eases-ai-unemployment-fears' target='_blank'>traditional job markets</a> face increasing pressures. This year alone, major companies such as Amazon, Google, TikTok, Tesla, and Salesforce have <a href='https://layoffs.fyi/' target='_blank'>announced layoffs</a>. Similarly, numerous smaller startups have experienced significant workforce reductions, with some shutting down operations entirely. High inflation rates, economic uncertainties, and industry-specific downturns have pushed more professionals towards <a href='https://www.glideapps.com/experts-program' target='_blank'>freelance and contract work</a>, a sector that promises more flexibility and potentially greater resilience against economic ups and downs.Zooming in: <a href='https://www.linkedin.com/services' target='_blank'>LinkedIn's Services Marketplace</a> caters to the growing demographic of freelancers, offering tools like AI-powered messaging and profile enhancements that streamline the networking and marketing efforts needed to secure new clients. Moreover, the platform's Premium Business subscription model, which promises up to twelve times more service requests per month, targets those looking to maximize their visibility and client engagement. Its strategy appears to be paying off: last fiscal year, LinkedIn's annual revenue <a href='https://techcrunch.com/2024/10/10/linkedin-says-10m-people-have-signed-up-as-freelancers-on-its-services-marketplace/' target='_blank'>reached</a> over $16 billion, up from $15 billion in fiscal year 2022.Bottom line: The shift towards freelance work raises questions about the future of employment and what this means for worker benefits and job security. While freelancing offers freedom and personal growth opportunities, it often lacks the benefits and protections that come with traditional employment, such as health insurance, paid leave, and retirement plans. As more people turn to platforms like LinkedIn to facilitate their freelance careers, the implications for the broader economy and traditional employment models are profound. Companies may need to adjust their strategies to accommodate a more transient workforce, and policymakers might need to consider new frameworks for benefits that support this modern work paradigm.

LinkedIn reports massive freelancer surge amid traditional job market woes

<ul> <li>Freelance and contract work is surging, while the traditional job market remains volatile</li> <li>LinkedIn’s Services Marketplace now has over 10 million freelancers and small businesses signed up</li> <li>Major companies like Amazon and Google have announced layoffs, pushing more professionals towards freelance work</li></ul>

Positive outlook: The U.S. economy <a href='https://www.bls.gov/news.release/pdf/empsit.pdf' target='_blank'>added</a> a robust 254,000 jobs in September, easing immediate fears of a downturn and quieting some concerns that rapid advances in artificial intelligence could be eroding employment opportunities. With the unemployment rate holding steady at 4.1%, the latest jobs report brings a measure of relief to both workers and economists who had feared that technological disruption might weigh more heavily on the labor market.To be sure: Concerns about AI and automation, however, are far from resolved. A <a href='https://www.accenture.com/us-en/blogs/blogs-careers/reinvent-your-career-with-generative-ai' target='_blank'>recent study</a> from Accenture reveals that while 95% of workers recognize the benefits of generative AI, most don't trust their organizations to ensure these benefits are shared equitably.<ul> <li>The study found that almost 60% of workers worry about AI eliminating their jobs, yet fewer than one-third of business leaders feel that job displacement is a serious issue for their workforce.</li> <li>The gap between workers' concerns and leadership’s perspective underscores a growing disconnect about the role of AI in the workplace.</li></ul>Why it’s important: The anxiety over AI-driven job displacement became particularly pronounced last week during a <a href='https://www.glideapps.com/news/construction-auto-industries-brace-for-port-strike-impact' target='_blank'>high-profile port strike</a> on the East Coast. Workers at major shipping hubs voiced concerns that automation could significantly reduce jobs in logistics and warehousing, sectors traditionally reliant on human labor.<ul> <li>While the union and port owners <a href='https://ilaunion.org/securing-the-61-5-raise-understanding-the-process/' target='_blank'>have agreed</a> on a wage increase, the contentious issue of port automation remains unresolved and is expected to be a significant challenge in the ongoing negotiations.</li></ul>Job Growth vs. Future Challenges: While the September jobs report provides some relief for now, with employment gains spread across industries such as food services, construction, healthcare, and social assistance, the underlying tension surrounding AI’s potential to displace workers remains. As companies continue to <a href='https://www.glideapps.com/news/numa-funding-ai-powering-auto-dealerships' target='_blank'>invest in AI and automation</a>, the challenge will be balancing innovation with the need for human jobs. Many workers remain apprehensive, especially as industries like manufacturing, retail, and logistics continue to embrace new technologies that could ultimately reduce the demand for human labor.

Job growth in September eases fears of AI-driven unemployment

<ul> <li>The U.S. economy added 254,000 jobs in September, easing fears of a downturn</li> <li>Unemployment remains steady at 4.1%, bringing relief to workers and economists</li> <li>Concerns about AI-driven job displacement persist, with a significant gap between workers' worries and leaders' perspectives</li> <li>Ongoing negotiations at East Coast ports highlight unresolved issues around automation and its impact on jobs</li></ul>

Driving the News: OpenAI has <a href='https://openai.com/index/new-credit-facility-enhances-financial-flexibility/' target='_blank'>secured a $4 billion</a> revolving credit facility from major financial institutions, boosting its total liquidity to over $10 billion.<ul> <li>This latest financial move follows its recent <a href='https://openai.com/index/scale-the-benefits-of-ai/' target='_blank'>$6.6 billion funding round</a>, which elevated the company’s valuation to $157 billion, solidifying its position as the second most valuable startup in the world.</li></ul>Why It Matters: This influx of liquidity enables OpenAI to scale its operations, invest in cutting-edge AI research, and build the infrastructure necessary for its growing user base and developer community. According to CFO Sarah Friar, the credit facility strengthens OpenAI’s balance sheet and provides flexibility for future growth initiatives. With AI's rapidly evolving landscape, the company now has the resources to push forward in areas where competition is heating up.Experts weigh in: As OpenAI continues to secure massive financial backing and release new tools, experts suggest that the company’s dominance is far from guaranteed. According to <a href='https://www.linkedin.com/in/stefan-johnson/' target='_blank'>Stefan Johnson</a>, CTO of <a href='https://getindigo.ai/' target='_blank'>Indigo AI</a>, OpenAI’s growing capabilities are beneficial, but competition is key for innovation. &quot;There is a giant on-ramp that people are taking to increase the speed at which their organizations adopt AI for productivity. We are part of that on-ramp,&quot; Johnson said. &quot;But I hope we never see a clear winner. Anthropic is delivering extremely compelling features. Gemini has already shown it can push the frontier. This competition benefits everyone.&quot;<a href='https://www.linkedin.com/in/benbohman/' target='_blank'>Ben Bohman</a>, CTO of <a href='https://www.stratishield.ai/' target='_blank'>Stratishield AI</a>, which is building AI solutions for business strategy, emphasizes the fluid nature of the industry, noting that it’s too early to declare a winner. &quot;I would be hard-pressed to declare a winner at this point... This market is very competitive, and I believe it is going to come down to who can solve the most problems for consumers and businesses,&quot; he said. Moreover, OpenAI is taking a more closed approach, while models like Meta’s Llama are adopting an open model. &quot;History typically shows that closed source models are more sustainable, but maybe this will change,&quot; he said.

The Big Picture: OpenAI’s dominance is being tested as rivals rapidly scale up. While OpenAI has outpaced them in funding and user base, the competition is fierce, and maintaining leadership requires constant innovation. OpenAI’s recent announcements at its 2024 DevDay reflect this drive. In response to pricing pressure from Meta, Google, and others, OpenAI introduced new developer tools, including the <a href='https://openai.com/index/introducing-the-realtime-api/' target='_blank'>Realtime API</a>, which allows developers to build apps with low-latency voice responses.Credit Details: OpenAI's new revolving credit facility was established with a consortium of major financial institutions including JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC.<ul> <li>&quot;This means we now have access to over $10 billion in liquidity, which gives us the flexibility to invest in new initiatives and operate with full agility as we scale,&quot; the company said in the press release. &quot;It also reaffirms our partnership with an exceptional group of financial institutions, many of whom are also OpenAI customers.&quot;</li></ul>What’s Next: Recent executive departures, including CTO Mira Murati and chief research officer Bob McGrew, add complexity to OpenAI's long-term strategy. Since its founding in 2015, only three of OpenAI’s original 13 co-founders remain, underscoring the internal shifts within the company as it evolves from a research lab to a corporate powerhouse.The Bottom Line: With its expanded liquidity and a clear focus on AI innovation, OpenAI is positioned to continue leading the AI sector. However, with increased competition and ongoing internal changes, the company will need to stay agile and innovate continuously to maintain its dominance in this fast-moving industry.

Limitless funding helps, but experts say it will take more than money for OpenAI to truly stay on top

This market is very competitive, and I believe it is going to come down to who can solve the most problems for consumers and businesses. History typically shows that closed source models are more sustainable, but maybe this will change.

There is a giant on-ramp that people are taking to increase the speed at which their organizations adopt AI for productivity. We are part of that on-ramp. But I hope we never see a clear winner.

<ul> <li>OpenAI secured a $4 billion revolving credit facility, boosting its liquidity to over $10 billion</li> <li>The move follows a $6.6 billion funding round, raising OpenAI's valuation to $157 billion</li> <li>The influx of funds enables OpenAI to scale operations, invest in AI research, and build necessary infrastructure</li> <li>But experts remain unmarried to a single provider, and emphasize that competition from rivals like Anthropic and Gemini remains fierce</li></ul>

Driving the news: SoftBank Group Corp. founder Masayoshi Son has outlined one of the most ambitious timelines for artificial intelligence adoption, predicting that Artificial General Intelligence — the ultimate goal for many AI developers — will arrive within the next two to three years, Bloomberg <a href='https://www.bloomberg.com/news/articles/2024-10-03/softbank-s-son-envisions-ai-running-households-in-next-few-years?leadSource=uverify%20wall&embedded-checkout=true' target='_blank'>reports.</a><ul> <li>Speaking at SoftBank’s annual forum for enterprise clients, Son said AI technology will evolve rapidly, becoming integral to daily life. He described a future where AI not only assists with mundane tasks, but also responds to human emotions, striving to make people happier.</li></ul>Zoom in: Son’s latest prediction comes as SoftBank continues to invest heavily in AI technologies. The company is contributing $500 million to OpenAI’s $6.6 billion fundraising round, which values the AI startup at $157 billion. While Son didn’t mention the investment in his speech, he praised OpenAI’s newest ChatGPT model for its reasoning capabilities, noting that it can provide rapid, thoughtful responses to complex queries.'Just a buzzword': While Son envisions a world where AI systems manage households, some experts remain skeptical of rapid progress toward AGI. <a href='https://www.linkedin.com/in/alfredo-gemma/' target='_blank'>Alfredo Gemma</a>, CTO of <a href='https://elerian.ai/' target='_blank'>Elerian AI</a>, which is developing human-like voice bots for call centers, describes AGI as &quot;just a buzzword that doesn't really make sense in today’s environment and development potential.&quot; He argues that while AGI is supposed to mimic human reasoning, &quot;there is no general and accepted definition of intelligence, because there are many types of intelligence... emotional intelligence, sound intelligence, mathematical intelligence, spatial intelligence.&quot;<ul> <li>According to Gemma, the race toward AGI is driven by misconceptions, and the idea of a fully autonomous AGI in the near future remains speculative. While investment is pouring into AGI, the necessary technological foundations are still far from being realized, he says.</li></ul>Meanwhile, MIT economist Daron Acemoglu last week <a href='https://www.bloomberg.com/news/articles/2024-10-02/ai-can-only-do-5-of-jobs-says-mit-economist-who-fears-crash?embedded-checkout=true' target='_blank'>told Bloomberg</a> that current AI models lack the reasoning and reliability necessary to handle complex, nuanced tasks across a wide range of industries.Why it matters: The race to achieve AGI has the potential to upend entire industries, transform global economies, and redefine societal structures, fundamentally altering how humans live and work in ways that are still largely unpredictable. Companies like SoftBank, investing heavily in AI, are betting on machines performing complex, human-like tasks, which could lead to massive competitive advantages.However, some experts caution that AGI’s arrival may be far off, raising concerns that companies aggressively investing in the technology could face costly setbacks. OpenAI, a leader in the field, has also taken a <a href='https://openai.com/index/planning-for-agi-and-beyond/' target='_blank'>more measured approach</a>.<ul> <li>CEO Sam Altman has stressed the uncertainty surrounding AGI’s timeline, emphasizing the importance of prioritizing safety, ethics, and collaboration.</li> <li>The outcome of this race will determine how responsibly and ethically AGI is integrated into society, shaping the future of work, governance, and human interaction on a global scale.</li></ul>

SoftBank’s Masa Son predicts AGI within a few years, while skeptical tech execs urge practicality

There is no general and accepted definition of intelligence, because there are many types of intelligence... emotional intelligence, sound intelligence, mathematical intelligence, spatial intelligence.

<ul> <li>SoftBank founder Masayoshi Son predicts AGI will arrive within two to three years</li> <li>The company invested $500 million in OpenAI, valuing the startup at $157 billion</li> <li>Many experts remain skeptical of AGI's near-term feasibility, and concerns about safety, ethics, and realistic timelines persist</li></ul>

Big search news: Google and Microsoft are racing to dominate the future of search by leveraging the power of AI, reshaping how users find information and how businesses approach search engine optimization (SEO) and advertising. As AI-driven search continues to evolve, the competition between these tech giants is bringing new tools to users and pushing businesses to adapt their digital strategies.<ul> <li>In May, Google <a href='https://blog.google/products/search/generative-ai-google-search-may-2024/' target='_blank'>introduced</a> AI-powered features such as AI Overviews and advanced planning tools. These innovations, powered by the new Gemini model, aim to give users quick, contextual answers to complex questions, enhancing the overall search experience.</li> <li>Meanwhile, Microsoft has been expanding its generative AI capabilities, and this week rolled out its enhanced generative AI search to a wider audience. This feature, currently available in the U.S., promises to provide more comprehensive answers to a range of informational and complex queries. Users can test the experience by typing “Bing generative search” into the search bar, where they’ll encounter a more interactive layout and detailed responses.</li></ul>Expert insight: <a href='https://www.linkedin.com/in/benjamingoodey/' target='_blank'>Ben Goodey</a>, founder of the SEO growth agency <a href='https://www.spicymargarita.co/' target='_blank'>Spicy Margarita</a>, shared his perspective on how users are adapting to these new AI-powered search features. &quot;After the initial dislike at the experience, I've been finding Google's AI overview surprisingly useful. For quick queries, it's great to not have to go hunting for insight,&quot; said Goodey, adding that he is not surprised that Bing is rolling out the same feature to a wider audience. &quot;In my view, it’s in everyone’s favor that search keeps evolving and improving for users. If it didn’t, those users would increasingly shift to video search platforms like TikTok and YouTube,&quot; he said.Why it matters: This AI-driven shift in search technology marks a pivotal change for both users and businesses. As AI plays a larger role, traditional SEO methods are evolving. Companies are no longer focusing solely on keywords; now, user intent, contextual relevance, and delivering high-quality content are the priorities. This transformation is not just about helping users find information faster but also about allowing advertisers and businesses connect with their target audience more effectively.<ul> <li>Google has made strides by <a href='https://blog.google/products/search/google-search-lens-october-2024-updates/' target='_blank'>embedding ads</a> directly into AI Overviews and shopping tools, allowing businesses to reach users when their intent to purchase is at its highest.</li> <li>On the other hand, Microsoft is positioning itself as the go-to platform for handling complex, information-rich queries, providing a more comprehensive user experience for deep research and nuanced inquiries.</li></ul>The bottom line: The AI arms race between Google and Microsoft is fundamentally changing how search engines operate and how businesses engage with their audience. As AI takes over traditional search methods, the focus for SEO has shifted to delivering valuable, context-rich content that meets user needs more effectively. For businesses, adapting to this new reality is critical to staying competitive in a world where AI-driven search is increasingly the norm.

AI powers the next battle in SEO as Google and Bing race to compete on features

Founder

In my view, it’s in everyone’s favor that search keeps evolving and improving for users. If it didn’t, those users would increasingly shift to video search platforms like TikTok and YouTube.

<ul> <li>Google and Microsoft are racing to dominate AI-powered SEO</li> <li>Google introduced AI Overviews and planning tools, offering quick, contextual answers to complex queries</li> <li>Microsoft Bing expanded its AI search in the U.S., providing more detailed, interactive responses</li> <li>The AI shift is changing SEO, with businesses now focusing on user intent, context, and high-quality content to stay competitive</li></ul>

Quick recap: Numa, the AI platform reimagining how auto dealerships operate, <a href='https://www.prnewswire.com/news-releases/numa-secures-32m-series-b-to-power-the-ai-native-auto-dealership-302264217.html' target='_blank'>has secured</a> $32 million in a Series B funding round. Leading the investment are Touring Capital, a growth-stage firm focusing on AI-powered software, and Mitsui & Co., Ltd., a global conglomerate heavily invested in the automotive and mobility sectors. Existing backers Costanoa Ventures, Threshold, and Gradient Ventures also participated, further solidifying Numa’s position as a game-changer in the dealership market.How it works: The platform is designed to integrate intelligent AI agents into every aspect of dealership operations—from answering missed calls and scheduling service appointments to coordinating inter-departmental tasks.<ul> <li>Numa's AI optimizes customer interactions and improves operational efficiency, reducing customer response times from 23 hours to just 13 minutes.</li> <li>The startup is building “the AI-native dealership,&quot; transforming how dealerships run at their core by making operations and communications smarter and more customer-centric.</li></ul>Why it matters: While the <a href='https://www.nada.org/media/4695/download?inline' target='_blank'>$1.2 trillion U.S. auto dealership market</a> is growing, it remains burdened by outdated systems that hinder productivity and customer satisfaction. Numa’s purpose-built AI solution aims to eliminate these inefficiencies, offering a much-needed technological upgrade to an industry ripe for disruption. This is part of a broader trend: niche AI offerings targeting legacy industries. Similarly, in retail, AI-driven inventory management systems such as <a href='https://www.shelfengine.com/' target='_blank'>Shelf Engine</a> help retailers reduce waste by predicting demand with greater accuracy. In healthcare, platforms like <a href='https://www.pathai.com/' target='_blank'>PathAI</a> are revolutionizing diagnostics, enabling more precise and efficient analysis of medical images.Industry Insights: <a href='https://www.linkedin.com/in/william-camastro-69749995/' target='_blank'>William Camastro</a>, dealer at <a href='https://www.goldcoastcadillac.com/' target='_blank'>Gold Coast Cadillac</a> dealership in Oakhurst, NJ, has firsthand experience with the impact of Numa's platform. &quot;Numa doesn't eliminate jobs—it makes employees more efficient,&quot; Camastro said in a phone interview. Numa allows the staff to communicate at a level 50% higher than they normally would, and it interacts with the Dealer Management System (DMS), pulling up customers' histories in real-time. “My fixed operations gross profit has increased by more than 100% in the last two years,” he said. &quot;AI can't pick up a broom or open a garage door, but it enhances what our people can do. We schedule over 40% of our appointments through the Internet, and our service advisors can handle customer interactions even when they’re not physically in the store.&quot;Bottom line: As AI continues to reshape legacy industries, Numa’s approach of augmenting rather than replacing human labor is one that other sectors will likely follow. With new funding in hand, Numa is poised to accelerate its growth, expand its engineering team, and further develop its AI platform, positioning itself as a leader in the ongoing transformation of the automotive service and sales landscape.

Dealer's Choice: New funding highlights AI's powerful role in modernizing auto dealerships

Partner/Dealer

AI can't pick up a broom or open a garage door, but it enhances what our people can do.

<ul><li>Auto dealership AI tool Numa secures $32 million in Series B funding</li><li>The platform integrates AI into dealership tasks, drastically reducing customer response times and boosting efficiency</li><li>Dealers adopting AI to uplevel employee productivity and find new revenue opportunities</li> </ul>

Driving the news: <a href='https://www.qodo.ai/' target='_blank'>Qodo</a>, formerly CodiumAI, has raised $40 million in a Series A to integrate advanced algorithms into various aspects of software development, focusing on code integrity and quality.Impressing the market: The fundraise brings Qodo's total investment to $50 million, and comes as the software development landscape undergoes a significant transformation with the adoption of AI-powered coding solutions. Qodo was named by <a href='https://www.gartner.com/en/documents/5660223' target='_blank'>Gartner</a> as a &quot;Cool Vendor&quot; in AI-Augmented Development and Testing for Software Engineering, and accepted into <a href='https://aws.amazon.com/startups/accelerators/generative-ai' target='_blank'>AWS's Generative AI Accelerator</a> program.The big picture: Qodo aims to help developers build high-quality software with confidence. Initially focused on AI-assisted unit test generation, the company has evolved into a comprehensive intelligent coding platform used by over 1 million developers, including several Fortune 100 companies.<ul> <li>Qodo's enterprise sales crossed $1 million in Annual Recurring Revenue (ARR) within three months of launching its offering in March.</li></ul>What they're saying: &quot;Our focus remains on code integrity as we continue to expand our platform's suite of AI-powered tools,&quot; <a href='https://www.qodo.ai/blog/qodo-50m-to-accelerate-quality-of-software-development-with-ai/' target='_blank'>said</a> Itamar Friedman, Qodo CEO and co-founder. &quot;We are developing new capabilities and supporting developers with innovative solutions that ensure robust and reliable code throughout the entire development lifecycle.&quot;<ul> <li>The round was led by <a href='https://susaventures.com/' target='_blank'>Susa Ventures</a> and <a href='https://www.squarepeg.vc/' target='_blank'>Square Peg</a>, with participation from Firestreak Ventures, ICON Continuity Fund, TLV Partners, and Vine Ventures.</li></ul>Zoom in: The rise of AI-generated code raises concerns about quality and reliability, but Qodo addresses these issues head-on.<ul> <li>The company's platform integrates seamlessly with popular IDEs, git platforms, and CLIs.</li> <li>Advanced techniques like Retrieval Augmented Generation (RAG) and a dynamic best practices database tailored to organizational coding standards enhance code quality and reliability.</li></ul>What's next: Qodo plans to expand its offerings, including <a href='https://www.qodo.ai/products/qodo-cover/' target='_blank'>Qodo Cover</a> for complex codebases, <a href='https://www.qodo.ai/products/git-plugin/' target='_blank'>Qodo Merge</a> for better code reviews, and evolving <a href='https://www.qodo.ai/products/ide-plugin/' target='_blank'>Qodo Gen</a> into a multi-agent system. The company will also extend its service to test code from the user interface with a new service called Qodo UX.

Qodo secures $40M Series A to boost AI-driven software development

CEO and Co-founder

Our focus remains on code integrity as we continue to expand our platform's suite of AI-powered tools. We are developing new capabilities and supporting developers with innovative solutions that ensure robust and reliable code throughout the entire development lifecycle.

<ul> <li>Qodo raises $40 million to enhance software development with advanced algorithms</li> <li>The platform is used by over 1 million developers and focuses on AI-powered tools for code integrity and quality</li> <li>The company is planning to expand offerings for complex codebases, better code reviews, and evolving into a multi-agent system</li></ul>

Massive value: OpenAI has <a href='https://openai.com/index/scale-the-benefits-of-ai/' target='_blank'>raised $6.6 billion</a> in new funding, catapulting its valuation to $157 billion. The funding round, led by Thrive Capital, brings the company’s total raised to $17.9 billion, cementing OpenAI's status as the <a href='https://seekingalpha.com/news/4155621-openai-becomes-third-largest-startup-following-latest-funding-round-report' target='_blank'>second highest-valued</a> startup in the world.<ul> <li>The new funding will allow OpenAI to expand AI research, increase compute capacity, and continue building tools like ChatGPT, which has over 250 million users, the company said in the press release.</li> <li>This funding is critical for OpenAI, which has been burning through billions to train models and run operations - ChatGPT alone <a href='https://www.businessinsider.com/how-much-chatgpt-costs-openai-to-run-estimate-report-2023-4' target='_blank'>reportedly costs</a> $700,000 a day to run.</li></ul>Why it matters: OpenAI’s dominance is being challenged as rivals rapidly scale up. Despite outpacing competitors in funding and user base, fierce competition means maintaining leadership will require continuous innovation. OpenAI’s recent announcements at its <a href='https://openai.com/devday/' target='_blank'>2024 DevDay</a> reflect this drive. In response to pricing pressure from Meta, Google, and others, OpenAI introduced new developer tools, including the Realtime API, which enables developers to create apps with low-latency voice responses, keeping it competitive in the evolving AI landscape.Key DevDay 2024 announcements:<ul> <li>Vision Fine-Tuning: Lets developers fine-tune GPT-4o with text and images, enhancing visual understanding tasks.</li> <li>Realtime API: Allows instant speech-to-speech applications with reduced latency and improved emotional accuracy. Starting at $0.06 per minute.</li> <li>Prompt Caching: Reduces costs and improves speed by caching frequently used context between API calls, offering 50% savings.</li> <li>Model Distillation: Fine-tune smaller models using larger ones to cut costs while maintaining high performance. Includes a beta evaluation tool for testing results.</li></ul>Experts weigh in: Some are impressed with the latest innovations. &quot;What does this mean: Real-time, low-latency, AI-powered voice responses that sound human, but can scale across industries. Picture this: AI answering phones, resolving issues, booking appointments—all in real time. No more long holds or dropped calls. Customer service will be transformed,&quot; <a href='https://www.linkedin.com/in/khadilkar/' target='_blank'>Abhijeet Khadilkar</a>, managing partner at <a href='https://spearhead.so/' target='_blank'>Spearhead</a>, an AI consulting company, wrote in a Linkedin post. “This shift is about more than technology—it’s about changing how companies interact with customers.”The Bottom Line: OpenAI’s $6.6 billion funding round solidifies its position as a top player in AI, but the competition is closing in. The company’s ability to innovate while managing high operational costs will be key as the AI race intensifies.

OpenAI announces staggering $157B valuation, trove of new CX features at DevDay

Managing Partner

This shift is about more than technology—it’s about changing how companies interact with customers

<ul> <li>OpenAI raises $6.6 billion, boosting its valuation to $157 billion</li> <li>Funds will be used to expand AI research and increase compute capacity</li> <li>New tools like the Realtime API aim to keep developers engaged and maintain market leadership</li></ul>

Driving the news: FedEx has rolled out a new platform, fdx, designed to <a href='https://www.supplychaindive.com/news/fedex-fdx-e-commerce-platform-integration-amazon-shopify/706240/' target='_blank'>strengthen its relationships</a> with e-commerce merchants and streamline supply chain operations. The platform integrates with major e-commerce providers like Shopify, Etsy, and Salesforce, offering precise delivery timeframes, customized order tracking, and centralized returns management.Why it matters: In a crowded market of e-commerce solutions, FedEx aims to differentiate itself by leveraging its extensive network insights to enhance customer experiences and optimize supply chain stages from demand generation to returns. Early adopters like fashion brand Z Supply have reported a 6.33% revenue increase and a 1.34% conversion lift on mobile after using fdx.The big picture: <a href='https://newsroom.fedex.com/newsroom/global-english/fedex-announces-first-of-its-kind-data-driven-commerce-platform' target='_blank'>Initially announced</a> in January at the National Retail Federation's Big Show for select shippers via a private preview, fdx is now live for U.S. customers of all sizes.<ul> <li>The platform supports major carriers outside of FedEx, including UPS, the U.S. Postal Service, and DHL.</li> <li>Core capabilities include growing consumer demand with ShopRunner, increasing conversion with Predictive Delivery Estimates (PDE), making informed decisions with <a href='https://newsroom.fedex.com/newsroom/global-english/fedex-launches-fedex-sustainability-insights-for-customer-emissions-tracking' target='_blank'>FedEx Sustainability Insights</a>, keeping customers engaged with Branded Order Tracking, and simplifying returns with Branded Returns.</li></ul>What they're saying: &quot;We are going to be able to help all retailers, brands, and merchants process their returns on their website, manage their exchanges, manage the inventory, integrate their branded tracking and communications to customers. It's a really powerful offering,&quot; said Brie Carere, EVP and Chief Customer Officer at FedEx.By the numbers: FedEx moves more than 15 million packages daily and has an annual revenue of $88 billion. The company employs over 500,000 people.<ul> <li>The platform uses data from these daily operations to enhance delivery date estimates.</li> <li>FedEx is committed to achieving carbon-neutral operations by 2040.</li></ul>What's next: FedEx plans to evolve the fdx platform by integrating new features and enhancements. Despite <a href='https://www.linkedin.com/posts/alessandro-desantis_ecommerce-platforms-dtc-activity-7155235184701775873-wQ71/?utm_source=share&utm_medium=member_desktop' target='_blank'>some skepticism</a> about its ability to stand out, the company remains focused on helping online businesses grow demand, optimize fulfillment, and streamline order returns.

FedEx launches 'fdx' to boost e-commerce supply chain efficiency

EVP and Chief Customer Officer

We are going to be able to help all retailers, brands, and merchants process their returns on their website, manage their exchanges, manage the inventory, integrate their branded tracking and communications to customers. It's a really powerful offering.

<ul> <li>FedEx launches the fdx platform to enhance relationships with e-commerce merchants and streamline supply chain ops</li> <li>The platform integrates with major e-commerce providers and offers features like precise delivery timeframes and centralized returns management</li> <li>Early adopters reporting conversion increases after onboarding the tool</li></ul>

Driving the news: Airship, a mobile-first customer experience company, is extending its Experience Platform (AXP) to the web. This expansion allows brands to create <a href='https://www.businesswire.com/news/home/20240925117867/en/Airship-Ushers-in-New-Era-of-Agility-for-Brands-to-Unify-and-Optimize-End-to-End-Customer-Experiences-Across-Websites-Apps-and-All-Channels' target='_blank'>seamless customer experiences</a> across apps, websites, and other channels without developer support.Why it matters: Brands are grappling with declining referral traffic from search engines and social networks, coupled with rising paid acquisition costs. Airship's move aims to deepen customer engagement and boost loyalty.<ul> <li>Siloed teams and data across multiple touchpoints make unified customer experiences challenging.</li> <li>Direct customer relationships are becoming crucial as referral traffic wanes.</li></ul>The big picture: Since 2009, <a href='https://www.airship.us/' target='_blank'>Airship</a> has pioneered solutions like push notifications and in-app messages. Now, it's tackling the HVAC industry, which is undergoing significant shifts due to retiring tradespeople and market consolidation by private equity firms.<ul> <li>Airship is developing point-of-sale software to help HVAC contractors increase sales by providing information on incentive programs and rebates.</li> <li>The company raised $4 million in pre-seed funding and plans to launch the product in November, with a broader rollout early next year.</li></ul>What they're saying: &quot;Since relaunching our app in April 2023, we have increasingly focused on delivering personalized user experiences, and Airship has been there to support us early in our development,&quot; said David LoPresti, U-Haul App Director.Zoom in: Airship's recent $4 million pre-seed funding round was led by QED Investors, with participation from Silence, Lorimer Ventures, Four Acres Capital, and Twine Ventures. The company has also announced partnerships with ServiceTitan and other home services platforms.<ul> <li>The home services industry is evolving rapidly due to demographic shifts, such as millennials becoming the largest group of homeowners.</li> <li>The aging U.S. housing stock is pushing a shift from DIY to DIFM (Do It For Me).</li> <li>Climate change and rising equipment and labor costs are further influencing the industry.</li></ul>By the numbers: Customers using Airship's platform have seen a 20% increase in ticket sizes and a 15% improvement in close rates.<ul> <li>Referral traffic from Facebook has declined by 50% in one year.</li> <li>News publishers receive 61% of their traffic from smartphones.</li> <li>Nearly half of online adults in the U.K. and U.S. want more personalized experiences from companies.</li></ul>Between the lines: Airship evaluated 25 leading U.S. news publishers' websites for first-time visitor experiences. They found that email opt-in prompts were more common than web notification prompts among news publishers. Findings also showed that news publishers could improve the activation of both smartphone and desktop audiences.What's next: Airship plans to use its recent funding to hire more staff and continue product development. The point-of-sale software is the first step toward building a comprehensive platform for HVAC contractors.<ul> <li><a href='https://www.servicetitan.com/' target='_blank'>ServiceTitan</a> has raised $1.5 billion in VC funding.</li> <li><a href='https://getjobber.com/' target='_blank'>Jobber</a> has raised more than $183 million.</li> <li><a href='https://www.servicefusion.com/' target='_blank'>Service Fusion</a> raised $10 million before being acquired by EverCommerce in 2020.</li></ul>

Airship expands web capabilities, eyes HVAC market with new software

App Director

Since relaunching our app in April 2023, we have increasingly focused on delivering personalized user experiences, and Airship has been there to support us early in our development.

<ul> <li>Airship extends its Experience Platform to the web, enabling multi-channel seamless CX for home service professionals</li> <li>The tool aims to address declining referral traffic and rising acquisition costs by boosting engagement and loyalty</li> <li>Early customers using report a 20% increase in ticket sizes and a 15% improvement in close rates</li> <li>The company also recently raised $4 million in pre-seed funding</li></ul>

Quick Recap: Recent hurricanes, like Helene, have shown how quickly natural disasters can disrupt businesses. <a href='https://centraljerseyins.com/business-interruption-insurance-for-natural-disasters-preparing-for-the-unpredictable/#:~:text=A%202019%20Federal%20Emergency%20Management,to%20ensure%20long%2Dterm%20survival.' target='_blank'>FEMA reports</a> that 40% of small businesses never reopen after a disaster, emphasizing the need for thorough preparation, and another 25% fail within one year.Before, During, and After: While personal safety is paramount, business owners must also prioritize protecting critical data to ensure recovery post-disaster, says <a href='https://www.linkedin.com/in/ncxgroup/' target='_blank'>Mike Fitzpatrick</a>, CEO of NCX Group. He <a href='https://www.linkedin.com/pulse/protecting-critical-business-data-before-during-after-fitzpatrick-p8l0f/?trackingId=nmDsixhCT%2F%2BE8VJqnoUrQg%3D%3D' target='_blank'>shared key steps</a> to help businesses remain resilient through the storm.Before the Disaster: Plan and Prepare<ul> <li>Backup Data in Multiple Locations: Ensure critical business data is securely backed up both on-premises and in the cloud.</li> <li>Create a Business Continuity Plan: Have a clear roadmap to maintain operations, even if your primary infrastructure is compromised.</li> <li>Strengthen Cybersecurity: Implement multi-factor authentication (MFA) and virtual private networks (VPNs) to prevent cybercriminals from exploiting the chaos.</li></ul>During the Disaster: Activate Protocols<ul> <li>Disaster Recovery Protocols: Immediately activate recovery plans, including relocating staff and ensuring backup systems remain online.</li> <li>Monitor Cyber Threats: Cyberattacks often increase during disasters. Be vigilant against phishing and ransomware attempts.</li></ul>After the Disaster: Recover and Learn<ul> <li>Assess Damage: Prioritize restoring systems and data from backups. Confirm the integrity of restored data.</li> <li>Audit and Improve: Review your disaster recovery plan and make adjustments based on what worked and what didn’t.</li></ul>The Bottom Line: Preparation is everything. Back up your data, secure your systems, and have a clear recovery plan in place to protect your business from unexpected disasters. Whether it's a hurricane or a cyberattack, your ability to respond quickly will determine how well your company weathers the storm.

Hurricane Helene spotlights need for better business data defenses

While personal safety is paramount, business owners must also prioritize protecting critical data to ensure recovery post-disaster.

<ul> <li>Disasters like Helene can shut down businesses fast, and FEMA reports up to 40% of small businesses never recover</li> <li>Data protection is critical for recovery, says Mike Fitzpatrick of cybersecurity consultancy NCX Group</li> <li>Prepare by backing up data and strengthening cybersecurity before a disaster</li> <li>After a disaster, assess damage, restore data, and improve recovery plans</li></ul>

Quick recap: When Hurricane Helene struck, it wasn’t just physical destruction that posed a threat—businesses also faced heightened cyber vulnerabilities. To mitigate these risks, organizations need a comprehensive approach to data protection that mirrors their disaster recovery plans, <a href='https://www.linkedin.com/in/shad0w/' target='_blank'>Kevin Nejad</a>, founder and CEO of <a href='https://vijilan.com/' target='_blank'>Vijilan Security</a>, said in a message.Expert advice: When disaster strikes, securing your business’s data requires proactive measures to prevent cyber threats from slipping in unnoticed. Here are key strategies to strengthen your defenses:<ul> <li>Advanced threat detection. Like storm warnings for hurricanes, advanced threat detection systems continuously monitor network activity, flagging suspicious behavior, such as abnormal login attempts, before any damage is done.</li> <li>Data ingestion and routing. Even during network disruptions, data needs to be routed securely. “By intelligently directing data to redundant and safe storage systems, businesses can maintain continuity and ensure that sensitive information is not lost or exposed during a disaster,” says Nejad.</li> <li>Real-time network visibility. With employees logging in from unfamiliar networks, the risk of unauthorized access and data breaches spikes, says Nejad. The solutions detect when alternate networks are used and flag potential security risks before they’re exploited.</li> <li>Network segmentation. Just like cities designate evacuation zones, businesses can segment their networks to contain potential breaches. Isolating critical systems can prevent a cyberattack from spreading across the entire network.</li></ul>The Bottom Line: In times of crisis, protecting data and ensuring continuity is as important as ensuring physical safety, said Nejad. &quot;By leveraging advanced threat detection, data routing, and network visibility technologies, businesses can proactively defend against data breaches, safeguard critical information, and ensure that even in the aftermath of a storm, their security posture remains intact.&quot;

Safeguarding data in the eye of the storm: cybersecurity experts weigh in on the aftermath of Hurricane Helene

founder and CEO

With employees logging in from unfamiliar networks, the risk of unauthorized access and data breaches spikes.

<ul> <li>Hurricanes create vulnerabilities for businesses by disrupting power, internet, and forcing employees into unsecured networks</li> <li>Kevin Nejad, CEO of Vijilan Security, shares strategies to protect business data during natural disasters</li> <li>Implementing advanced threat detection, data routing, and network segmentation can help prevent breaches</li></ul>