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Todd Kane: Welcome back to another
episode of the Evolved Radio podcast.

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Today we're talking about something
every MSP is running into right now.

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How do you let your team actually use
AI without turning your ticket data

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into someone else's training set?

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My guest today is Callen Sapien.

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Callen is currently building Synthrio,
an AI infrastructure platform built

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specifically for MSPs and SMBs.

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Before that, he was chief
strategy officer at MSP-Bots.

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Here's how I'm kind of
framing this one, Callen.

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As we talked about, we spent a decade
dragging clients to the cloud, then we

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spent a decade dragging them to security,
and now our clients are dragging us into

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AI, whether or not we're ready for it.

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And I think we're missing a lot of
opportunities, both on the client end

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as well as internally at the MSPs.

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So today, Callen and I are digging
into how you actually give your whole

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team AI superpowers without blowing
up your PII exposure in the process.

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Callen, welcome to the show

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Callen Sapien CEO Synthreo:
Thank you very much, uh, for

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the warm welcome and having me.

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It, you, uh, opened up on everything
that I do every day long, so

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Todd Kane: Perfect.

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Great guest.

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Callen Sapien CEO Synthreo:
Yeah, there we go.

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We're aligned

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Todd Kane: Yeah.

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So, uh, I'll, I'll maybe reframe this
again, like we talked about, um, and

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then I'll, I'll kind of set you up to,
to, to, to give us your perspective

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on this 'cause I, I think you're
particularly well-suited for this pr-

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this, having your experience with MSP
Bots, integrations with PSA, now building

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a very, very AI-forward platform, so good
exposure on kind of both ends of these,

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these, uh, the, these, uh, this topic.

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And the part that concerns me is I see
sort of this multi-layered approach

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for people, especially service managers
that I interact with a lot in the

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work that I do, and some of them are
really leveraging AI in great ways.

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They're, uh… In particular, I've
seen, uh, a lot of people dumping ticket

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data into a model and having it do some
analysis and, uh, spotting some trends and

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giving it some insights, and that stuff
is golden because doing a service review

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manually is time-consuming and requires
a lot of sort of mental bandwidth and

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energy to kind of connect those dots.

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So being able to offload that to
a model is super, super valuable.

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But rightfully, people are a bit nervous
about where they give that data to, right?

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If you're gonna export all of your
tickets, just dump it into a model and

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say, "Give me some insights," you gotta
be pretty particular about how you're

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actually servicing that model, what
information potentially goes in there.

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Simple things like the fact that, you
know, I think you and I, you and I talked

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about this, is like a lot of people
don't even recognize, like even if you

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have a paid model, there is a setting
in your options to turn off whether

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or not it goes into training data.

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So just because you're paying
doesn't necessarily mean that

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you're clean to give it kind of
as much information as you want.

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So I recognize why people are cautious
about this, but I see this as sort of

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a tale of two MSPs, the people that are
leveraging AI in order to be able to

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do these things and hopefully doing it
well, versus the people that are not

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able to take advantage of this because
they're somewhat justifiably fearful about

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the best way to take, to go about it.

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So what's your, what's your take
on how we go, we go about this in

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a safe fashion in order to maximize
AI's potential inside the MSP?

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Callen Sapien CEO Synthreo: I, I, I--
That's a great, uh, overview and, and I

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break it down into really three areas.

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There's the technological, right?

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Did I uncheck that box?

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Uh, I have ZDR enabled,
zero data retention, right?

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Uh, uh, we love to throw out
acronyms in our space and

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Todd Kane: It's a new one for me.

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I like it

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Callen Sapien CEO Synthreo: and,
and zero data retention is actually

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probably the most critical piece.

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I'll circle back to it because I don't
wanna, like, do the ADHD thing where

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I, I, I go off and I say I'm gonna
talk about three things and then, then

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jump down, which I almost did just now.

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So you've got your technical,
which includes things like

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zero data retention, ZDR.

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That includes the, the, the actual
checking of the settings, uh, and the--

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and then the secure, and we've been
talking about this for a long time,

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whether it's cloud security or even going
back to the aughts where it's the right

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permission levels, uh, set up, right?

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The right identity and access policy.

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Uh, so there's the technological side.

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Then something that we, we overlook
a lot is the contractual side.

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We, we have gotten used to these,
like, giant SaaS agreements that we

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just, we just click, "Yep, I read it.
Yep, I read it." And most courts have

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said, you know, it's not really a, a--
truly something that we would expect.

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It does limit liability, but, but you
can't enforce every clause, right?

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Uh, but the AI, uh, terms are actually
not as long as most SaaS terms,

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and they have some hooks in there.

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Uh, and then the last
piece is cultural, right?

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Um, y- y-- we, we are-- You, you
mentioned the, the push, push, now pull.

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We cannot suddenly, three years later,
come in and say, "I've been handling

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your security for a really long time.

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I ignored AI.

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I just told you to ignore AI.

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I know you didn't ignore AI.

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Now I'm gonna shut everything down,
and you can't use it," because

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people have been getting value.

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Even if that value has been a picture
of my fridge and see what I'm gonna make

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today or what's in my fridge, they're
getting value, and they haven't had the

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pain as much as they have in other areas
that they haven't had the governance.

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And so one other thing that's kind
of interesting on that last part is

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I was on with an MSP in Canada and,
uh, the, the Canadian AI Privacy

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Security, uh, Act failed, right?

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It did not go through.

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But that doesn't mean the FIPS
Act that, that exists around data,

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data retention and all of those
things can't be enforced, right?

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GDPR counts, FIPS counts whether or
not it was done by AI, SaaS or a human.

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And we, we-- when we're, when we--
we do need to bring that in as a

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governance piece, but, but those
are the three kind of buckets.

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Going back to the zero data retention,
because I do think that's the most

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important one, second is the contractual,
but the, the, the zero data retention

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is critical because you can uncheck
that box that says or check that box

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that says, "Do not train on my data."
There is no box with any vendor right

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now that says, "Do not retain my data."
And they propose in their contractual

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side that they have legitimate reasons
for it, if you're r- abusing it, if they

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need to see if a model's misbehaving,
if they have these other things.

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But every single model provider
asks for or demands as part of the

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use of the product, the ability to
keep data for as little as seven

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years, which is a long time, uh,
and as much as, uh, indefinitely.

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When we look at like Google having shifted
from don't be evil for the first 11 years

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and, and listening to, "I'm not gonna
train on your data, I'm not gonna do

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these things," and still work within the,
the confines, we know that if somebody

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has access and they keep access, it
may not always be used for good things.

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I don't wanna be like a scary, Anthropic
is using your data to destroy the

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world, but, but if they retain a copy
of it, you know, things can change.

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But I, I-- Before I jump into
the contractual, I'd love any

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thought that you have there.

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Todd Kane: Yeah, I guess like the biggest
issue with that is gonna be breach, right?

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Like your data is retained somewhere and
it's not necessarily-- 'cause originally

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like when the, the, when GPT was first
sort of exploding and there was like

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these stories of like, uh, these guys
at Samsung that loaded up a bunch of

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information in-into GPT and, you know,
uh, nearly eliminated one of their

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patents because they'd, uh, in ess-in
essence made the information public

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into one of the, one of the models.

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Or like your data kind of resurfacing
as information for other people if

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it's a part of the training data.

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And I think a l- some of that is
definitely, uh, not as much of a

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concern as it originally was, and it
goes to sort of the f- like the first,

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uh, I would say edict of AI safety
is don't use an unpaid model, right?

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Like the free model is there
for training data, right?

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So if you're gonna give your data
to anything, make sure it's a paid

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model at the very least and you're
turning off some of this data.

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But to your point, like
it's still there, right?

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Like there's some websites even for myself
where I will tell it not to save my credit

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card data 'cause I'm like, "Yeah, it's not
really that big of a company if it's not

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using Shopify or Amazon as a backend cart.

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Like do I really trust it?" Same idea.

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Like you're, you're essent-uh,
essentially kind of giving this, uh,

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this information over for free forever.

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Uh, so yes, there's a risk of data breach.

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Some people think like, um, "I'm
a small player, you know, my

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information, you know, would it…
w-why would they possibly use my

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information for something," right?

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And it's not really that.

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It's like, okay, data exfil, they dumped a
petabyte of information from, uh, AI model

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X. Your information's in there, right?

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So I think that's sort of the, the biggest
risk is, is just data exfil from some

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scary event in the future and, you know,
could be even sort of strangely benign.

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Like we had these conversations recently
with Alex Dao on, on security where, uh,

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training models broke into other companies
in order to gain access into stuff, and

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that's exactly how this could go down
is like, you know, uh, Fable Six, uh,

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launches an attack because it needs more
training data and starts breaking into

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all the other AI companies and s- and
pilfers all of its information, right?

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Like, uh, you never know how
this stuff's gonna come about.

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So I think that, that's a good
point is just understand sort of

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where the data is resident and
how it's being utilized right now.

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Callen Sapien CEO Synthreo: That's,
that is a, uh… And that, and that

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even in-- So there's a large problem
of people being incredibly empowered.

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Uh, uh, we, we, we have the ability
to kinda host your own MCPs, right?

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And, and that may seem somewhat
superfluous because there's a lot of

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MCPs out there, but the reason we have
it is because of the data residency and

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the other pieces you're talking about.

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I've got a, a partner that needs data
residency, uh, from regulatory reasons.

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Uh, they can use the official app in the
store that exposes financial information

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and these other things, the official MCP
for a marketplace, uh, through Claude.

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But Claude won't guarantee that that
data doesn't on US servers or it's

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saved there and these other things.

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People need to understand what that flow
of data is, and it's actually a tremendous

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amount of value that an MSP can provide.

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Uh, it's a huge value add,
giving this visibility and

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building the services around it.

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And at the risk of sounding anti-security
again, and I'm not anti-security, I've

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been a CISO, but at the risk of it, uh,
the thing that I would like to actually

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point out related to this is you can't
sell and protect AI the same way that we

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did endpoints and other pieces because
it doesn't operate or act the same way.

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And in the last five years, six
years, done a lot in security, but

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a lot of MSPs that thought they were
gonna be MSSPs did not become MSSPs.

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They bought a SOC, they bought
an MDR, they bought an outsourced

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helper to deliver these things.

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So they've outsourced the services
side of this instead of standing it

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up because it costs a lot to stand up.

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the, the challenge with trying
to sell AI that way is the

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management is where the margin is.

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The, the, the, the driving of the
output, the guidance that, that's

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required to actually impact the P&L
is where the management is and the

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guidance of, and that, that actually
shifts into the contractual side.

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In the US, a lot of the court cases
are up in the air still on whether

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something like attorney-client privilege,
if someone's using AI, counts, right?

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Because for the same

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Todd Kane: Yeah.

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Callen Sapien CEO Synthreo:
destroying your patent.

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Todd Kane: Mhm

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Callen Sapien CEO Synthreo: And the
one thing through the cases that are

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pro and for and against and this and
that, the one commonality through all

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of them when we look at what's becoming,
uh, stare decisis, the, the let the,

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let the decision stand, is who had
the governance and the stewardship

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of the data contractually, and was
there anyone that could take this data

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for a legitimate or an illegitimate
reason and shift it, uh, and use it?

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And, and that's where the
contractual side comes in.

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Pretty much every main, main provider
that's out there that we're going to use

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this data to, to, to, to learn something.

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Not train the model, but we're gonna
learn something, and we can access

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it over the course of using it.

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And so that, that to me is a, a
big area that we can get into.

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Todd Kane: Okay.

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Um, yeah, I think the, the governance
piece, like that's, that's I,

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I think really interesting.

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I'll, I'll, uh, governance, I'm gonna
write this down just so, 'cause we

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got-- we're gonna open up tons of
ADHD threads here as we go, I'm sure.

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All right.

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Um, the, uh, I guess like the function
around sort of the util-utilization for

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PSA data, like that, that to me, like I
said, is like I, I wanna focus on this

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because I feel like there's an incredible
amount of value for it, but it's such

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a fraught issue for doing it correctly.

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Um, so obviously, okay, you
know, we're not using, um,

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a train, uh, uh, free model.

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Maybe we're, uh, handing
it over to a paid model.

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Uh, I think understanding, uh, where the
contractual I think lays into this is

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like being clear with the client that
maybe you're using their data, right?

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Like if you're supporting a law firm
and they have client information,

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uh, potentially in some of those
tickets or the connections that

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you create to them, that creates a
bit of a, a slippery slope as well.

00:13:24.593 --> 00:13:29.363
And maybe that's an interesting one as
well, is how do we think about the PSAs

00:13:29.393 --> 00:13:34.983
that have AI capabilities built into them
or other tools that are connected, right?

00:13:34.983 --> 00:13:39.263
Like that is, you know, you're not
even necessarily giving something to a

00:13:39.263 --> 00:13:43.603
model, but the model is passing through,
or sorry, the data is passing through

00:13:43.633 --> 00:13:47.993
another model in some fashion you don't
necessarily have direct visibility to.

00:13:48.283 --> 00:13:51.803
So like, and I have to imagine this
is incredibly common with most of

00:13:51.803 --> 00:13:55.503
the platforms creating some type
of AI capability, whether or not

00:13:55.503 --> 00:13:58.603
it's a third-party module or just
built into the system, right?

00:13:58.603 --> 00:14:00.103
So how do you think about that piece?

00:14:01.291 --> 00:14:02.691
Callen Sapien CEO Synthreo: Yeah,
I think it's, it's, it's, it's

00:14:02.691 --> 00:14:07.141
a completely under-addressed
problem that exists right now.

00:14:07.191 --> 00:14:11.971
Uh, it, it-- The, the, the, at least
the use of AI within traditional SaaS

00:14:11.981 --> 00:14:16.811
products in a completely unmanaged way.

00:14:16.851 --> 00:14:19.521
Monday.com, for example,
added a feature that basically

00:14:19.521 --> 00:14:21.371
put Lovable or Replit in it.

00:14:21.401 --> 00:14:26.021
You can build apps, build MCPs, connect
things into your Monday as if you

00:14:26.021 --> 00:14:27.971
were building, building front ends.

00:14:28.241 --> 00:14:31.981
And that's not… That's-- It's
very, very challenging to be

00:14:31.981 --> 00:14:35.061
able to get visibility into what
people are doing in, in that area.

00:14:35.101 --> 00:14:39.641
And so I think that, uh, it, it's
still kinda coming out in the wash.

00:14:39.651 --> 00:14:41.451
We're working on some ways
of building visibility.

00:14:41.451 --> 00:14:45.261
There's some really cool apps out there
doing that, but it's, it's, it's, it's,

00:14:45.271 --> 00:14:49.911
it's very heavyweight right now, and
it, and it's across every single app.

00:14:49.921 --> 00:14:55.311
Uh, when you look at a standard MSP, they
use 17 tools to deliver the, the output.

00:14:55.351 --> 00:14:58.041
Their customers use about 23 to 28 tools.

00:14:58.501 --> 00:15:01.801
All of them have AI in them now
processing it, and most of them

00:15:01.801 --> 00:15:04.801
have updated their terms to make
it an opt-out, not an opt-in.

00:15:04.841 --> 00:15:07.671
You're, you're, you're not… It's
not like calling in used to be.

00:15:07.671 --> 00:15:11.911
I think it eventually will be, but, but
it, but the data is being used, maybe

00:15:11.911 --> 00:15:15.121
not to improve things, but it's being
pushed through a model that, that, that

00:15:15.121 --> 00:15:16.371
we don't know what it's gonna do with it.

00:15:16.641 --> 00:15:19.291
When we get back to kinda your core
question, which is, you know, how

00:15:19.291 --> 00:15:22.651
are these things being used, and how
are we able to do it in a, in a core

00:15:22.651 --> 00:15:24.851
way or in a, uh, in a strong way?

00:15:25.381 --> 00:15:29.161
One thing that, that I think we talk
about a lot, and it's shifted with

00:15:29.481 --> 00:15:33.491
AI, people have asked me why I think
that AI is so good at coding, right?

00:15:33.491 --> 00:15:37.231
This was a hard task that
required a lot of brainpower and

00:15:37.231 --> 00:15:38.671
a lot of reasoning that exists.

00:15:38.841 --> 00:15:42.171
And the whole reason that it's great at
coding is because open source software

00:15:42.171 --> 00:15:48.441
exists and, uh, Bitbucket and, uh, and,
uh, and Stackbucket and Stackjack and all

00:15:48.441 --> 00:15:52.381
these, these things where I could go look
at good code examples, bad code examples,

00:15:52.381 --> 00:15:53.811
and they train the models off of that.

00:15:54.151 --> 00:15:58.641
I think right now we're trying to protect
the wrong things with our data, even the

00:15:58.641 --> 00:16:00.201
PIIs and the other, the other pieces.

00:16:00.201 --> 00:16:01.721
We have to do that because of compliancy.

00:16:02.061 --> 00:16:08.033
But the data Your MSP's data is not
very different than this MSP's data.

00:16:08.043 --> 00:16:10.543
That lawyer's data is not very
different from that lawyer's data.

00:16:10.883 --> 00:16:13.493
But what is different is
your processes and the how.

00:16:13.873 --> 00:16:18.833
You're seeing more and more, uh,
these attacks almost, uh, they-- I, I

00:16:18.833 --> 00:16:22.123
would actually say they're almost to
a level of attack where, uh, Claude

00:16:22.443 --> 00:16:23.753
Design's a perfect example of this.

00:16:24.113 --> 00:16:27.133
Claude went and had a Figma integration.

00:16:27.483 --> 00:16:32.523
Claude learned how Figma works, and
then they launched Claude Design.

00:16:32.933 --> 00:16:39.183
If someone doesn't put any PIIs in there,
doesn't put any data, doesn't put anything

00:16:39.183 --> 00:16:42.633
in there around what the ticket actually
contains, but they, they actually describe

00:16:42.633 --> 00:16:50.663
their process to the AI, now I've given
the AI what makes me a 28% EBITDA MSP

00:16:50.843 --> 00:16:55.023
instead of a flat or an, a 5% EBITDA MSP.

00:16:55.183 --> 00:16:59.973
If I put that data on how the, the,
the process of how this lawyer treats

00:16:59.973 --> 00:17:03.363
clients and, and runs through their
process, now I've given away my secret

00:17:03.363 --> 00:17:07.593
sauce, and anybody who uses that model
that it's improved itself on gets that.

00:17:07.593 --> 00:17:10.173
And I think that's one of the things
that we really do have to, we have

00:17:10.173 --> 00:17:14.853
to talk through, and, uh, how do we
protect the knowledge and the how?

00:17:15.033 --> 00:17:19.263
Because IP is, is, is shrinking
as a, as a capability.

00:17:19.483 --> 00:17:22.673
Um, and that's something that I, that
I think that is very interesting,

00:17:22.683 --> 00:17:23.793
and how do we protect that?

00:17:23.793 --> 00:17:25.883
And that actually goes
back to that ZDR, right?

00:17:25.883 --> 00:17:28.473
If, if the model doesn't remember
anything about what happened,

00:17:28.473 --> 00:17:29.553
then, then it can't learn.

00:17:30.219 --> 00:17:30.479
Todd Kane: Yep.

00:17:30.789 --> 00:17:31.059
Yeah.

00:17:31.459 --> 00:17:34.319
I, I almost feel like that one's
unavoidable, and I almost feel

00:17:34.319 --> 00:17:38.959
like, uh, also, uh, like one of my
favorite expressions that I've said

00:17:38.959 --> 00:17:42.819
forever since I've been consulting
is, "Knowledge is easy, execution is

00:17:42.819 --> 00:17:46.929
hard." Uh, I don't know that there's a
lot of proprietary information in the

00:17:46.929 --> 00:17:49.009
future that we can actually protect.

00:17:49.079 --> 00:17:52.289
Uh, uh, outside of things like
the Coca-Cola recipe, right?

00:17:52.289 --> 00:17:56.469
Like sure, like there's some s-
specifically proprietary information.

00:17:56.469 --> 00:18:00.599
But I think it's, it's a good example
of what is really strange about the MSP

00:18:00.609 --> 00:18:04.899
industry that I call it a lot is we all
fundamentally have the same business

00:18:04.899 --> 00:18:09.389
model and noob- no two businesses
run even remotely similarly, right?

00:18:09.399 --> 00:18:13.459
Like, a- and this is despite the fact
that like there's a huge incentive and

00:18:13.459 --> 00:18:17.919
a huge model for commoditization and
forcing people to, to work the same way.

00:18:17.919 --> 00:18:23.069
But quite frankly, most organizations
are a reflection of their owner, right?

00:18:23.109 --> 00:18:27.349
And anyone who has never noticed this,
just like do a bit of a tour and think

00:18:27.349 --> 00:18:30.019
about the places that you've worked,
the companies that you've looked at.

00:18:30.269 --> 00:18:33.629
They are always a reflection of
the owner in this weird, weird way.

00:18:33.979 --> 00:18:36.729
So I think that's really only
the, the only differentiation.

00:18:36.949 --> 00:18:40.939
So I don't know that like the
information of, uh, how I do something

00:18:41.089 --> 00:18:45.399
is, is necessarily as sort of a
secret sauce as maybe, maybe it

00:18:45.419 --> 00:18:46.729
would be, especially in the future.

00:18:46.759 --> 00:18:50.269
Because knowledge will just be
so systemic and available, right?

00:18:50.509 --> 00:18:50.799
Yeah.

00:18:51.159 --> 00:18:51.439
So,

00:18:52.239 --> 00:18:52.457
um-

00:18:52.757 --> 00:18:55.017
Callen Sapien CEO Synthreo: I really
like, I'm not a huge Sam Altman

00:18:55.017 --> 00:18:58.037
fan, but I do think he, he's been
right on a lot of things, already

00:18:58.037 --> 00:18:59.797
built a trillion-dollar company.

00:19:00.077 --> 00:19:03.027
Uh, but, uh, and a
trillion-dollar non-for-profit.

00:19:03.097 --> 00:19:04.327
Uh, but, uh,

00:19:04.627 --> 00:19:06.187
Todd Kane: If you're getting
technical about it, yeah.

00:19:06.617 --> 00:19:09.207
Callen Sapien CEO Synthreo: you're
getting technical, uh, he, he said

00:19:09.207 --> 00:19:13.977
that AI, and it's, it's turning into
hands as well, but he said AI is an,

00:19:14.017 --> 00:19:16.587
is a utility, but it's intelligence.

00:19:16.607 --> 00:19:21.007
It, you, instead of electricity,
instead of, instead of gas or, or

00:19:21.007 --> 00:19:22.187
these other things, it's intelligence.

00:19:22.187 --> 00:19:25.397
And you turn on the spigot, and
companies that can spend a lot like

00:19:25.397 --> 00:19:28.117
they would on electricity can spend a
lot on intelligence, and companies that

00:19:28.117 --> 00:19:29.677
can't will get a little intelligence.

00:19:29.677 --> 00:19:33.967
And I think it, it actually bodes to
your point of the fact that it, it's

00:19:33.977 --> 00:19:36.987
going to be ubiquitous, and there's,
there's a, a, a time that we can

00:19:36.987 --> 00:19:38.877
protect it, but it is gonna go away.

00:19:38.877 --> 00:19:41.127
It's just something to be
aware of as we go through.

00:19:41.127 --> 00:19:45.057
When we actually talk about the
practical application of using AI

00:19:45.057 --> 00:19:48.037
in ticket data, I think that there's
still a lot of focus on personal

00:19:48.037 --> 00:19:52.767
productivity, and we haven't really
s- got into the infrastructure phase.

00:19:53.017 --> 00:19:57.377
That's where we're seeing the, the
labor, the FTE, and the P&L impacts is

00:19:57.377 --> 00:20:02.057
when we start to get into the actual
infrastructure phase of installing

00:20:02.067 --> 00:20:06.877
an agent, of installing, uh, the data
layer, the ontology layer, if you will,

00:20:07.077 --> 00:20:12.547
uh, within an o- an organization so
that we can delegate and dispatch to,

00:20:12.637 --> 00:20:14.947
to the, to the agent to get it done.

00:20:14.957 --> 00:20:19.217
I actually think that human in the loop
is becoming a more and more antiquated

00:20:19.217 --> 00:20:21.487
term, and it's almost a Luddite type term.

00:20:21.747 --> 00:20:25.537
It, it, it… Human in the loop,
humans make mistakes as much or more.

00:20:25.567 --> 00:20:29.197
Uh, there's, there's a cool company
in our space, uh, that got me turned

00:20:29.197 --> 00:20:33.707
on to, uh, AI, uh, before it was cool.

00:20:33.737 --> 00:20:35.647
I was still on the machine
learning and data as well.

00:20:35.647 --> 00:20:39.297
I was at, at MSP-Bots, and we were trying
to figure out AI and machine learning.

00:20:39.497 --> 00:20:43.297
But, uh, Mark Elaev, the fou- one of
the founders with Matt over at, at, at

00:20:43.297 --> 00:20:47.847
Thread, uh, called me in March of 2022,
and he's like, "We've got this thing that

00:20:47.847 --> 00:20:53.107
we got into the beta of called OpenAI,
and we're, we're using it to, to, to guess

00:20:53.157 --> 00:20:58.297
and accurately put in time entry against
a ticket." And I was like, "Oh, cool.

00:20:58.297 --> 00:21:02.227
How accurate are you?" Like, "84 or 85%
accuracy." I was like, "That's really

00:21:02.227 --> 00:21:09.125
high." And people didn't adopt it because
it was 84 or 85% accuracy attacks,

00:21:09.525 --> 00:21:11.325
uh, remember these tickets had zero,

00:21:11.563 --> 00:21:12.393
Todd Kane: Yeah, exactly.

00:21:12.635 --> 00:21:13.135
Callen Sapien CEO Synthreo: entry

00:21:13.193 --> 00:21:14.693
Todd Kane: an 84% improvement, yeah.

00:21:15.465 --> 00:21:17.055
Callen Sapien CEO Synthreo:
It's, yeah, and, and the ones

00:21:17.055 --> 00:21:19.665
that did are 37% accurate.

00:21:20.147 --> 00:21:20.517
Todd Kane: Wow

00:21:20.525 --> 00:21:23.815
Callen Sapien CEO Synthreo: you know,
the, the, the level of which I, I get

00:21:23.815 --> 00:21:27.645
into debate a lot and people argue with
me on, and I understand accountability

00:21:27.645 --> 00:21:32.995
is the hard part, but, you know, with
like self-driving cars, they are 100%

00:21:33.035 --> 00:21:36.275
more safe than human-driven cars.

00:21:36.475 --> 00:21:38.885
But that isn't good enough
for a lot of people because

00:21:39.125 --> 00:21:40.305
can't hold the car accountable.

00:21:40.305 --> 00:21:42.935
But you can hold the company and
the machine and all these other,

00:21:42.935 --> 00:21:44.395
just like if a seatbelt fails.

00:21:44.745 --> 00:21:47.755
Um, I think the, the, the answer
should be it should be better than

00:21:47.755 --> 00:21:50.985
the human in a measurable way, and
that's what I think when we're doing

00:21:50.985 --> 00:21:54.399
these things we should be looking
at within the, within the instances

00:21:54.699 --> 00:21:54.939
Todd Kane: Yeah.

00:21:55.497 --> 00:21:57.557
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00:22:31.133 --> 00:22:31.393
Todd Kane: All right.

00:22:31.413 --> 00:22:37.003
So you mentioned, um, uh, sort of like
the where the information is resident,

00:22:37.063 --> 00:22:40.423
and this I-- this is another layer that
I think is really fascinating about

00:22:40.423 --> 00:22:44.603
this is, okay, so yes, you could use a
cloud model for some of these things.

00:22:44.943 --> 00:22:50.693
Um, you could use a hosted like Azure
container model for, for these things.

00:22:50.911 --> 00:22:51.151
Callen Sapien CEO Synthreo: Mhm.

00:22:51.451 --> 00:22:52.933
Todd Kane: your guys'
approach is different.

00:22:52.933 --> 00:22:55.883
It's sort of like, uh, maybe
a hybrid between the two, if

00:22:55.883 --> 00:22:57.003
I understand that correctly.

00:22:57.083 --> 00:23:00.713
Yeah, can sort of private
containers, uh, uh, type approach.

00:23:01.093 --> 00:23:04.403
Um, the other one that I was thinking
is like, well, maybe are we just

00:23:04.403 --> 00:23:08.843
gonna start doing a lot more, uh, ho-
self-hosted and private models, right?

00:23:08.873 --> 00:23:11.883
And, uh, like that kind of makes
some sense because I feel like, like

00:23:11.893 --> 00:23:14.743
despite the fact that the frontier
keeps on pushing forward, like the

00:23:14.743 --> 00:23:19.463
frontier models from Anthropic, OpenAI,
uh, you know, Kimi, they're, they're

00:23:19.463 --> 00:23:23.723
advancing and their capabilities
are, are, uh, advancing incredibly.

00:23:23.763 --> 00:23:27.563
But they're also like some of, some of
this is diminishing returns on where it

00:23:27.563 --> 00:23:31.893
is right now is perfectly fit for all the
things that I continue to need, right?

00:23:32.123 --> 00:23:36.423
And I am like this close to
moving to a private model, right?

00:23:36.423 --> 00:23:39.933
Probably the next, uh, the
next Mac upgrade that I get,

00:23:39.953 --> 00:23:41.053
I'll go, I'll be fine, right?

00:23:41.053 --> 00:23:44.823
Like I won't necessarily need a frontier
model for most of the things that I do.

00:23:45.333 --> 00:23:51.323
But, um, so I was thinking to myself, so
like maybe most of these companies should

00:23:51.323 --> 00:23:55.143
just maybe look at self-hosted models and,
and for, for some of this information.

00:23:55.173 --> 00:23:58.413
Won't be as fast, but you know, if you're
just doing some data analysis and let

00:23:58.413 --> 00:24:00.103
it churn for an hour, then great, okay.

00:24:00.133 --> 00:24:01.543
It spits out something relevant.

00:24:01.993 --> 00:24:04.903
I was having a conversation
with, uh, uh, John Dobbin.

00:24:04.923 --> 00:24:07.883
I'll give him a shout-out for,
for the, the insight on this.

00:24:07.931 --> 00:24:08.451
Callen Sapien CEO Synthreo: Yeah

00:24:08.613 --> 00:24:10.023
Todd Kane: he scared the
crap out of me on this.

00:24:10.023 --> 00:24:14.933
He's like, "So here's the thing.
Most of the self-hosted models, like

00:24:15.163 --> 00:24:18.513
the open source models, there's,
there's very little guardrails and

00:24:18.513 --> 00:24:20.253
containers built around them," right?

00:24:20.253 --> 00:24:24.803
Like the frontier models have a lot of,
uh, capabilities around prompt injection

00:24:24.853 --> 00:24:28.623
that they will not do things that are,
that are gonna be nefarious, right?

00:24:28.623 --> 00:24:33.243
But like, uh, what, what the, the sort of
the, the idea that he, that he suggested

00:24:33.243 --> 00:24:38.373
is, say you have like a website where you
can have clients submit tickets, right?

00:24:38.433 --> 00:24:42.183
And someone goes in and submits a
malicious tickets that gets processed

00:24:42.203 --> 00:24:46.353
by a local AI that doesn't have good
prompt injection, uh, management

00:24:46.353 --> 00:24:49.613
on it, and now all of a sudden
it starts exfilling data based on

00:24:50.033 --> 00:24:51.763
that, that, that ticket submission.

00:24:51.763 --> 00:24:55.553
I was like, "Oh, crap. Okay.
Private hosted models may not

00:24:55.553 --> 00:24:56.913
be the best play here," right?

00:24:56.943 --> 00:24:59.713
So it kind of scared me of like,
there's, there's so many risk

00:24:59.713 --> 00:25:03.123
and reward trade-offs between the
different approaches here, right?

00:25:04.155 --> 00:25:04.625
Callen Sapien CEO Synthreo: Mm-hmm.

00:25:04.965 --> 00:25:06.645
Um, no, it's spot on.

00:25:06.665 --> 00:25:10.965
There's, there's, there's really
two challenges currently with the…

00:25:11.005 --> 00:25:15.925
Outside of the fact that you gotta
probably spend truly to, to, to get

00:25:15.935 --> 00:25:21.005
something really meaningful, you
probably spend eight to $10,000 just

00:25:21.005 --> 00:25:24.845
with component costs right now to, to,
to get something that, that can run.

00:25:24.885 --> 00:25:28.185
And then, and then you've got
energy costs and the, the other

00:25:28.185 --> 00:25:30.505
pieces because GPUs are heat.

00:25:30.585 --> 00:25:33.705
Uh, we, we, we, we went through
this with the mining era of

00:25:33.829 --> 00:25:34.099
Todd Kane: Right

00:25:34.399 --> 00:25:34.605
Callen Sapien CEO Synthreo: right?

00:25:34.665 --> 00:25:37.945
Uh, and, and so we, we know that, you
know, there's probably gonna be a lot

00:25:37.945 --> 00:25:41.815
more solar panels popping up, uh, for, for
people in a little while, or geothermal.

00:25:42.355 --> 00:25:45.475
Uh, but the other piece to the
local models, I, I do agree with

00:25:45.475 --> 00:25:48.225
John that, that, that there are…
But you can, you could put the

00:25:48.225 --> 00:25:49.485
same type of guardrails, right?

00:25:49.485 --> 00:25:53.555
They do have lower context windows,
right, which is a problem, uh, because

00:25:53.555 --> 00:25:56.475
you fill up pretty quick and you don't,
you don't know what you can attack.

00:25:56.725 --> 00:25:59.695
Uh, but I do think that is, this
is absolutely w- going to be part

00:25:59.695 --> 00:26:00.825
of the solution in the future.

00:26:01.055 --> 00:26:04.025
Uh, but one of the big challenges
with these models right now

00:26:04.025 --> 00:26:05.285
is the hallucination rate.

00:26:05.735 --> 00:26:11.655
Uh, we see with locally hosted models,
uh, in the 40s, 50% hallucination rate

00:26:11.695 --> 00:26:13.355
over the course of a conversation.

00:26:13.595 --> 00:26:19.105
And so you, you really need a lot of
human intervention, both from the security

00:26:19.105 --> 00:26:22.245
side that John was talking about, but
also from the business outcome side.

00:26:22.245 --> 00:26:26.175
The, the models are more prone to
hallucination because the math isn't

00:26:26.175 --> 00:26:30.863
as strong, and the context is worse,
and the memories are not as powerful.

00:26:31.163 --> 00:26:31.773
Todd Kane: So that it,

00:26:32.045 --> 00:26:32.685
Callen Sapien CEO Synthreo: really where

00:26:32.793 --> 00:26:35.813
Todd Kane: the, the, uh, let me dig on
this 'cause like that, that is a function

00:26:35.863 --> 00:26:40.473
of smaller context window by nature
because of limited infrastructure and

00:26:40.483 --> 00:26:44.683
something to do with the models themselves
or sort of the parameters that are built

00:26:44.683 --> 00:26:46.383
around it, or just the context window?

00:26:47.451 --> 00:26:49.091
Callen Sapien CEO Synthreo:
It's, it's, it's a combination

00:26:49.091 --> 00:26:51.641
of, of kind of all the pieces.

00:26:51.881 --> 00:26:54.799
The smaller models with
the lower parameters have

00:26:55.099 --> 00:26:55.389
Todd Kane: Yep.

00:26:56.081 --> 00:26:56.569
Callen Sapien CEO Synthreo: capacity,

00:26:56.869 --> 00:26:57.169
Todd Kane: Yep

00:26:57.261 --> 00:26:57.781
Callen Sapien CEO Synthreo: what you said.

00:26:58.011 --> 00:27:01.261
Uh, you know, to put another
way, it's like, you know, using,

00:27:01.361 --> 00:27:02.561
uh, less of your brain, right?

00:27:02.561 --> 00:27:04.881
A lot of those models were
designed to have, for example,

00:27:04.881 --> 00:27:08.611
like 32 billion parameters that
they can take on at a given time.

00:27:08.871 --> 00:27:12.531
We neuter them down to seven
to eight billion parameters.

00:27:12.791 --> 00:27:17.421
So you've got a prediction engine
that is trying to predict something

00:27:17.521 --> 00:27:22.521
with a quarter of the context and
the memory capabilities that it has.

00:27:22.731 --> 00:27:28.561
So it does work great for, for certain
repetitive tasks, QA, processing of,

00:27:28.571 --> 00:27:31.381
of, of almost a deterministic behavior.

00:27:31.651 --> 00:27:35.121
Uh, but where it, where it really
starts to, to fall down is when we, when

00:27:35.121 --> 00:27:39.801
we start getting into, uh, you know,
adding in multi-step processes, right?

00:27:39.831 --> 00:27:44.481
Uh, multi-step is really the big part
that, that gets hit, and that's where

00:27:44.641 --> 00:27:48.351
we can add in different workflows
and loops and, and these other

00:27:48.351 --> 00:27:50.201
things, but it, it definitely…

00:27:50.211 --> 00:27:54.381
It's actually one of the main reasons
why John's security breakdown happens

00:27:54.381 --> 00:27:59.411
as well, because how you overwhelm and,
and overcome the guardrails largely

00:27:59.621 --> 00:28:06.311
with these models is either by injecting
a, a, a, a, a mistruth and calling

00:28:06.311 --> 00:28:08.831
it on it, and then, and then now it's
like, "Oh, I was wrong on this. I

00:28:08.831 --> 00:28:12.841
lied, so now I'm gonna relax my other
things because, because this is here."

00:28:12.871 --> 00:28:15.081
Or then context bombing.

00:28:15.091 --> 00:28:21.541
So I'm gonna drop in 50% of my context
window because now it's the guardrails

00:28:21.591 --> 00:28:26.441
were maybe 30% of every turn in the
conversation for the first half of

00:28:26.441 --> 00:28:28.731
this conversation, now they're 18%.

00:28:28.831 --> 00:28:32.841
So as that math is, is, is expanding,
the, those, those guardrails just

00:28:32.841 --> 00:28:34.701
have less weight in the conversation.

00:28:34.721 --> 00:28:38.281
There's still more weight than the,
than the, than the attack, but they

00:28:38.281 --> 00:28:42.411
have less weight overall, and then it's
just about consistency in attacking it.

00:28:42.711 --> 00:28:43.573
Todd Kane: Especially given this…

00:28:43.711 --> 00:28:43.851
Callen Sapien CEO Synthreo: bel-

00:28:44.163 --> 00:28:44.463
Todd Kane: Go ahead.

00:28:45.141 --> 00:28:45.891
Callen Sapien CEO Synthreo:
No, no, go ahead

00:28:45.933 --> 00:28:49.553
Todd Kane: Well, I, I think it's,
that's relevant specifically for sort

00:28:49.553 --> 00:28:53.693
of the use case that I'm advocating for,
in, in particular is ticket analysis.

00:28:53.703 --> 00:28:54.343
So you,

00:28:54.525 --> 00:28:55.015
Callen Sapien CEO Synthreo: Yes

00:28:55.403 --> 00:29:00.553
Todd Kane: say, even s- three months of
data, that's still a lot of data to dump

00:29:00.553 --> 00:29:06.293
into, uh, like, that's certainly not gonna
fit in a 200,000K, uh, window, right?

00:29:06.693 --> 00:29:07.723
Or 200K window.

00:29:08.073 --> 00:29:12.903
Uh, e- even a million, I think, like, it
might fill up a fair bit, but, you know,

00:29:12.913 --> 00:29:14.723
you gotta be sensitive to that, right?

00:29:15.437 --> 00:29:18.997
Callen Sapien CEO Synthreo: We, we, um,
we're handling this in a, in a way where

00:29:18.997 --> 00:29:24.777
we're tr- what we're trying to do is,
is not offload the, the model itself,

00:29:24.777 --> 00:29:28.937
but offload the compute, because that
will reduce some of the, the, the cost.

00:29:29.157 --> 00:29:33.167
And so what we do is we try and keep
the thinking and try and keep the

00:29:33.167 --> 00:29:36.537
actions local, because that's, that's
more controllable and definable.

00:29:36.877 --> 00:29:38.697
Uh, and, and then batching.

00:29:38.757 --> 00:29:42.947
I, I think batching is highly
underutilized by practitioners,

00:29:43.047 --> 00:29:45.537
and this is where the Ticketdata
side can come in very well.

00:29:45.797 --> 00:29:49.947
If I can, if I can run through a
recognition pattern, whether that's

00:29:49.957 --> 00:29:53.717
machine learning or whether that's a
SLM or whether that's just a model,

00:29:53.897 --> 00:29:56.677
and say, and categorize these things,
then I can send them through in

00:29:56.677 --> 00:29:59.077
batches, and then I can reconnect.

00:29:59.297 --> 00:30:02.097
Uh, Gary Vee just, uh, said
something a couple days ago

00:30:02.097 --> 00:30:03.117
that I really, really liked.

00:30:03.127 --> 00:30:05.907
Um, and, uh, I've followed
him for a long time.

00:30:05.907 --> 00:30:08.917
I didn't expect him to become an
AI guru, but, you know, the guy's

00:30:08.927 --> 00:30:10.367
a guru in so many other areas.

00:30:10.667 --> 00:30:15.117
But he calls it the 15/85 rule,
and he, and he started it with his,

00:30:15.327 --> 00:30:16.767
with his, like, leadership team.

00:30:16.977 --> 00:30:19.567
He wants to be involved in the
first 15% of the planning and

00:30:19.567 --> 00:30:24.367
strategy, let them go off and do
80%, and then back there for the 5%.

00:30:24.367 --> 00:30:28.477
And I think that when we apply
it to AI, it's very similar.

00:30:28.737 --> 00:30:31.877
Let me be part of the planning
and the strategy, go do your work,

00:30:32.087 --> 00:30:33.597
uh, and then, and then come back.

00:30:33.607 --> 00:30:37.707
And we could actually probably localize
those much better than, than otherwise.

00:30:37.707 --> 00:30:39.797
I think Zofik was on, was on that path.

00:30:39.797 --> 00:30:43.347
I d- you know, I haven't talked as
much to Lee since their acquisition,

00:30:43.347 --> 00:30:45.977
but, but I think that was really
what he was trying to solve for was

00:30:45.977 --> 00:30:49.347
because we had people running these
local models, and so he, he took that

00:30:49.587 --> 00:30:51.615
on th- uh, upon theirselves to do it.

00:30:51.915 --> 00:30:54.365
Todd Kane: It's funny 'cause like this
morning actually in my group coaching

00:30:54.365 --> 00:30:58.075
session, I, I, I talk about this
model a lot, and it's 10 / 80 / 10.

00:30:58.075 --> 00:30:59.295
So, you know, he's got the,

00:30:59.387 --> 00:30:59.717
Callen Sapien CEO Synthreo: Yeah.

00:31:00.017 --> 00:31:01.345
Todd Kane: the 50 and 80 and five.

00:31:01.655 --> 00:31:04.125
Uh, so yeah, my model is, is 10 / 80 / 10.

00:31:04.125 --> 00:31:07.695
I don't remember originally where I got
this from, but it's, it's an industry,

00:31:07.795 --> 00:31:11.515
uh, sort of leverage productivity
model, especially for delegation.

00:31:11.585 --> 00:31:16.235
This is where like I originally
started using this in, uh, uh, avoiding

00:31:16.235 --> 00:31:18.005
executive swoop and poop, right?

00:31:18.005 --> 00:31:22.065
Because the, the executive would sort of
get in there and mess around with stuff,

00:31:22.085 --> 00:31:25.415
and they didn't set up the parameters
for what the delegation was or what

00:31:25.415 --> 00:31:28.315
they wanted, so they would make a mess
and then sort of show up at random

00:31:28.315 --> 00:31:30.225
times and not pr-produce any value.

00:31:30.255 --> 00:31:34.135
So I would tell people like, "Okay, use
the 10 / 80 / 10 model for delegation,

00:31:35.085 --> 00:31:38.955
10% l- front loading expectations,
delivery, what you wanna protect

00:31:38.955 --> 00:31:42.565
against, then let them go and do 80%
of the work and then 10% cleanup on the

00:31:42.565 --> 00:31:46.315
end." So exactly the same, same model,
slightly different, different numbers.

00:31:46.315 --> 00:31:50.005
But where I think this is
particularly useful is delegation.

00:31:50.045 --> 00:31:52.525
Like that's where I talk about
this framework a lot, right?

00:31:52.565 --> 00:31:57.235
And what-- I think what you're pointing
to is we need to start thinking more about

00:31:57.335 --> 00:32:02.895
agents as independent, sort of autonomous
employees doing particular work.

00:32:03.205 --> 00:32:07.095
And it's weird because like it's not
necessarily contiguous, but I think

00:32:07.095 --> 00:32:11.805
we still wanna think about it in a
10 / 80 / 10, uh, delegation exercise

00:32:11.815 --> 00:32:13.305
of like, "Here's the parameters.

00:32:13.305 --> 00:32:14.145
This is what I want.

00:32:14.145 --> 00:32:15.225
This is the expectations.

00:32:15.225 --> 00:32:16.955
Don't do this, do this,"
all of those things.

00:32:17.225 --> 00:32:20.735
Let it churn for 80% and then
inspect it on the back end, right?

00:32:20.775 --> 00:32:25.945
And like I'm sure you've heard this term
meat proxy, um, which is, uh, uh, people

00:32:25.945 --> 00:32:29.985
that just take whatever comes from AI
and turns around and, and spits it out.

00:32:30.145 --> 00:32:32.885
Uh, and this is where like work
slop is coming from, right?

00:32:33.145 --> 00:32:37.655
The, the whole idea of, uh, you know,
I, I, I was gonna send an email.

00:32:37.855 --> 00:32:42.395
I had ChatG- ChatGPT punch it up to
like a three-page or a three-paragraph

00:32:42.395 --> 00:32:44.625
summary with lots of information and data.

00:32:45.015 --> 00:32:49.105
Uh, I emailed that over to somebody else,
and then that person uses their AI agent

00:32:49.115 --> 00:32:53.095
to digest it into like the f- the, the
much smaller version of this, right?

00:32:53.095 --> 00:32:55.695
So it, it's just meat proxy
to meat proxy, and we're kinda

00:32:55.705 --> 00:32:58.145
uselessly using AI in, in between.

00:32:58.515 --> 00:32:59.715
Uh, so now I'm just ranting.

00:32:59.735 --> 00:33:04.335
But the, I think the, the, the, the,
the way of, uh, using delegation

00:33:04.885 --> 00:33:08.385
frameworks for AI and the similarities
that we should be applying in

00:33:08.385 --> 00:33:13.385
general, uh, sort of collaboration
and management is very on par, right?

00:33:15.033 --> 00:33:17.583
Callen Sapien CEO Synthreo: I, I,
it, it actually uncovers a very human

00:33:17.583 --> 00:33:21.523
problem that we're dealing with right
now, and, and, uh, it's-- there,

00:33:21.523 --> 00:33:22.793
there, and there's two pieces to it.

00:33:23.123 --> 00:33:28.993
We have looked at leadership as
a… And I mean leadership and

00:33:28.993 --> 00:33:32.145
managerial, because you don't have
to have reports to be a leader.

00:33:32.445 --> 00:33:32.655
Todd Kane: Mhm

00:33:32.793 --> 00:33:35.863
Callen Sapien CEO Synthreo: looked at
that as there's a class of people that

00:33:35.863 --> 00:33:40.643
have earned that right, and we're going
to invest in those people because we think

00:33:40.643 --> 00:33:42.343
that they would be good leaders of humans.

00:33:42.753 --> 00:33:48.353
Uh, in order to be a powerful AI user
and actually use it in a way that is

00:33:48.353 --> 00:33:52.293
going to impact in a positive way your,
your clients, yourself or, or your

00:33:52.303 --> 00:33:54.623
mission, you have to be a good delegator.

00:33:55.043 --> 00:34:00.343
And we've gatekept these things to the,
to the, to the upper class of this.

00:34:00.363 --> 00:34:02.833
And including, we've told people
like, "Well, I don't think

00:34:02.833 --> 00:34:03.963
you're cut out for leadership."

00:34:03.963 --> 00:34:05.813
Well, now you have to be a leader.

00:34:05.993 --> 00:34:09.933
And I think it's going to-- And we--
I've actually seen a rise in more like

00:34:09.943 --> 00:34:13.103
HR consultants going into leadership
management, teaching these things.

00:34:13.343 --> 00:34:17.553
It's also, uh, been a challenge for
people that have, uh, globalized

00:34:17.563 --> 00:34:22.503
talent because we ma- we, we globalize
the talent and we, we, we offload,

00:34:23.403 --> 00:34:29.963
workflows and intellect to individuals
to follow a process with no deviations.

00:34:29.983 --> 00:34:35.243
And, and so, you know, comp- countries
like the Philippines, uh, certain areas

00:34:35.243 --> 00:34:42.173
of India, uh, Vietnam, Indonesia, uh,
Pa- Pakistan, these areas have, have

00:34:42.183 --> 00:34:47.803
built, you know, farms and, and, and,
and cities mul- you know, um, uh,

00:34:47.833 --> 00:34:52.663
of, of people that, that are going to
follow these things, and if they don't

00:34:52.663 --> 00:34:54.513
follow it every step, they're fired.

00:34:54.863 --> 00:34:59.413
And we're asking them to adopt the
management capabilities and the

00:34:59.413 --> 00:35:04.113
creativity that we've trained out of
them for 45 years as we've outsourced.

00:35:04.133 --> 00:35:08.693
And it's, it, it-- and a lot of MSPs use
globalized talent, and it's something

00:35:08.693 --> 00:35:13.283
that, that we're going to really have to
address in a very short amount of time.

00:35:13.543 --> 00:35:16.773
Uh, otherwise, the token cost is not
gonna be worth it, in my opinion.

00:35:17.147 --> 00:35:19.497
Todd Kane: Yeah, and that's the other
issue that I think we're facing here.

00:35:19.537 --> 00:35:22.977
Maybe, uh, slightly off track,
but, you know, tangen-tangentially

00:35:22.977 --> 00:35:27.927
related is, um, the over-indexing
on sort of the capabilities of AI

00:35:27.927 --> 00:35:31.247
and where they can actually fit and,
you know, the token cost for those.

00:35:31.247 --> 00:35:35.767
People are now going, uh, you know,
uh, it was sort of the last six months,

00:35:35.797 --> 00:35:39.127
eight months was token maxing, token
maxing, we're gonna do amazing things,

00:35:39.127 --> 00:35:43.747
20% layoffs, and then they're like, "Holy
crap, why are our costs up 70%," right?

00:35:44.407 --> 00:35:45.557
And so they were token maxing.

00:35:45.567 --> 00:35:49.577
Now it costs more than the people that
they had sort of doing jobs before, and

00:35:49.577 --> 00:35:52.867
maybe not achieving the same ends that
they thought coming into it, right?

00:35:53.147 --> 00:35:56.427
So I think this will be an interesting
trend to watch, but I, I think

00:35:56.717 --> 00:36:00.147
what you're, you're alluding to is
more of sort of a business process

00:36:00.147 --> 00:36:06.327
thing of like, how do we, how do we
compartmentalize and really understand

00:36:06.347 --> 00:36:11.967
the work that we're doing, and how do we
intelligently hand it off to workers or

00:36:12.107 --> 00:36:15.657
digital workers in a way that actually
produces the results that we want?

00:36:15.707 --> 00:36:19.427
I think that's gonna be a really
fascinating exercise going forward, right?

00:36:20.635 --> 00:36:24.005
Callen Sapien CEO Synthreo: Yeah, I
mean, that's i- in the-- We're, we're,

00:36:24.175 --> 00:36:28.785
we're coming up on a year officially
really in market, uh, in, in November.

00:36:29.235 --> 00:36:34.445
And in that year, we've had
really two pretty dramatic shifts

00:36:34.455 --> 00:36:37.415
onto my company's identity and,
and the problems that we solve.

00:36:37.725 --> 00:36:42.605
There, it's the same mission, but, uh,
technology and the landscape has shifted

00:36:42.605 --> 00:36:47.765
so much that, that we've realized that
we need to be, uh, the optim- the, like,

00:36:47.765 --> 00:36:54.255
the, the greatest optimizer of delivering
those outcomes for the business class.

00:36:54.265 --> 00:36:58.795
So what I, how I would, how I would
liken that is basically like Cursor for

00:36:58.815 --> 00:37:03.455
delivering results with AI, Uh, and,
and Cursor does deliver results for AI.

00:37:03.455 --> 00:37:04.795
It's just specifically around coding.

00:37:05.135 --> 00:37:09.035
And so we've, we've built it, and it's
to the point where I think you mentioned

00:37:09.035 --> 00:37:10.465
the diminishing… No, uh, I don't think.

00:37:10.475 --> 00:37:12.515
You did mention diminishing returns.

00:37:12.885 --> 00:37:18.505
And we can get out of a, a, an open
weight model like Inkling similar

00:37:18.505 --> 00:37:23.995
to Fable 5.0 results, uh, with,
with our Wingtip engine, right?

00:37:24.015 --> 00:37:28.885
And, and the cost of that is a 10th
or, or a 40th, or if you're willing

00:37:28.885 --> 00:37:33.925
to use a GLM, maybe a 100th to
get, to get 90, 95% of the output.

00:37:34.575 --> 00:37:38.655
The other piece is that infrastructure
piece, and I think it's a, the,

00:37:38.685 --> 00:37:42.335
probably the biggest opportunity
with AI, though, for the MSP

00:37:42.335 --> 00:37:48.925
market, is we gave up infrastructure
when we, when we went to 365.

00:37:49.015 --> 00:37:50.655
You've been in the industry long enough.

00:37:51.135 --> 00:37:56.945
I-- fortunately, cybersecurity came
quick enough, but I remember talks of

00:37:56.945 --> 00:38:04.225
layoffs, panic in 2016, 2017, as we moved
from, "We own all the infrastructure.

00:38:04.235 --> 00:38:08.175
We're building data centers," to,
"We're getting 20%, 10%, 8% of what

00:38:08.175 --> 00:38:11.815
Microsoft will give us, and, and
now we've got to survive on this."

00:38:12.055 --> 00:38:13.995
Then security came in, it saved us.

00:38:14.065 --> 00:38:17.695
Uh, and but we're now back in the
spot where we get to manage and

00:38:17.695 --> 00:38:21.085
maintain the infrastructure again,
and we need the right people that

00:38:21.085 --> 00:38:22.675
can figure out how to do those tasks.

00:38:22.885 --> 00:38:25.055
But then we need to figure out,
like, where does that live?

00:38:25.055 --> 00:38:26.075
What does this look like?

00:38:26.075 --> 00:38:27.165
And how does that scale?

00:38:27.445 --> 00:38:32.135
And it's a huge opportunity, though,
that, that exists, uh, in, in the space

00:38:32.145 --> 00:38:37.535
because I think we can get back to
the 60, 70% margins and have partners

00:38:37.535 --> 00:38:41.195
that are absolutely willing to pay it
because they're getting so much value.

00:38:41.205 --> 00:38:44.495
But it requires exactly what you
said, the right delegation, the

00:38:44.495 --> 00:38:47.645
right harnesses, and the right,
uh, infrastructure to, to do that,

00:38:47.715 --> 00:38:49.385
Todd Kane: Yeah, and that's
the biggest thing here is, is

00:38:49.685 --> 00:38:49.905
Callen Sapien CEO Synthreo: at.

00:38:49.925 --> 00:38:53.365
Todd Kane: yeah, there's always where
there's complexity, there's margin, right?

00:38:53.405 --> 00:38:57.055
And we're now getting to the space
where like y- you can't just sort

00:38:57.055 --> 00:38:59.305
of, "Oh, just go get ChatGPT," right?

00:38:59.305 --> 00:39:03.305
I think that there's sort of like layers
of where MSPs are going wrong in their

00:39:03.495 --> 00:39:06.835
AI strategy, and I've been ranting about
this as like that's why I sort of frame

00:39:06.835 --> 00:39:11.325
it as like pulling their clients to cloud,
pulling their clients s- to security.

00:39:11.325 --> 00:39:12.105
Like, where are you guys on AI?

00:39:12.105 --> 00:39:13.835
You're not leading, right?

00:39:13.845 --> 00:39:16.645
Like there's so much shadow
AI going on, it's insane.

00:39:16.965 --> 00:39:18.875
So first there's just the
governance aspect of that I

00:39:18.885 --> 00:39:20.255
think is a massive opportunity.

00:39:20.635 --> 00:39:24.575
Um, but I think like the, the work that
you guys are doing is a huge opportunity

00:39:24.605 --> 00:39:28.465
of actually stepping into, you know,
the industry term Pax8 is, is sort

00:39:28.465 --> 00:39:34.325
of, uh, advocating for is, um, is, uh,
managed intelligence provider, right?

00:39:34.355 --> 00:39:38.285
And right now, a lot of people are just
like, "Here, let me set you up with

00:39:38.315 --> 00:39:43.505
Copilot." And it's like, well, okay,
like that's easy, but like that's not

00:39:43.525 --> 00:39:45.105
gonna produce a ton of value for people.

00:39:45.145 --> 00:39:49.625
I honest- I kind of firmly believe this
is why we're seeing so many damning

00:39:49.625 --> 00:39:53.425
stats in the industry of AI initiatives
failing in enterprise businesses,

00:39:53.455 --> 00:39:55.005
'cause they're just like, "Here you go.

00:39:55.005 --> 00:39:55.655
Here's AI.

00:39:55.665 --> 00:39:56.845
You're gonna do great," right?

00:39:56.885 --> 00:39:59.865
Like, "Here you go, Tommy." And like
nothing comes out of that 'cause they

00:39:59.865 --> 00:40:01.015
don't know what to do with it, right?

00:40:01.035 --> 00:40:02.025
Like, no one's trained them.

00:40:02.035 --> 00:40:04.315
They don't know how to use
those models beyond just asking

00:40:04.315 --> 00:40:05.665
for recipes and stuff, right?

00:40:05.985 --> 00:40:08.335
So the, of course, that's
not gonna produce anything.

00:40:08.615 --> 00:40:13.135
The second layer would be, you know,
"Hey, let me do consulting with you. We'll

00:40:13.145 --> 00:40:17.135
s- we'll set up, uh, like so a Claude
account or an enterprise GPT account

00:40:17.155 --> 00:40:21.665
and get everyone sort of rolled out on a
maybe a arguably a better model," right?

00:40:21.705 --> 00:40:23.325
And maybe this is the way to go about it.

00:40:23.325 --> 00:40:26.935
And now it's just consulting with
reselling kind of a SaaS product.

00:40:27.205 --> 00:40:30.555
But I think what you guys are doing is,
is much more the hybrid of like, "I'm

00:40:30.555 --> 00:40:35.735
gonna give you a console that allows
you to do like open weight routing on to

00:40:35.735 --> 00:40:40.915
different models and give you the privacy
protection and, and the portability to

00:40:40.925 --> 00:40:44.115
multiple models." And I think this is
massive 'cause of your point, like when

00:40:44.115 --> 00:40:48.075
we were, we were talking before, maybe
you can d- you can dialogue on this story

00:40:48.075 --> 00:40:52.475
a little bit of like you had a client,
like they were paying 50,000 a month

00:40:52.565 --> 00:40:58.465
in self-hosted Claude plus Azure, and
you guys slashed that to like just over

00:40:58.465 --> 00:41:02.425
10,000 a month with, uh, with, uh, the,
the platform that you guys are doing.

00:41:02.685 --> 00:41:05.615
So I think this is the value that you
can bring to people is like, not only

00:41:05.615 --> 00:41:09.445
am I giving you the capabilities for a
fraction of the cost, but I'm actually

00:41:09.455 --> 00:41:13.545
able to manage it for you rather than
just sort of like, "Okay, hang on, let me

00:41:13.805 --> 00:41:18.495
try and log in as an admin to your, to y-
to your, your, uh, your profile," right?

00:41:18.745 --> 00:41:20.845
Maybe you can expand on sort
of how you guys are doing that.

00:41:22.139 --> 00:41:24.379
Callen Sapien CEO Synthreo: Yeah,
I, I think, you know, the most

00:41:24.419 --> 00:41:31.349
forward-looking, that we end up
encountering are dealing with actually

00:41:31.359 --> 00:41:34.029
some of the initial 365 problems, right?

00:41:34.029 --> 00:41:36.769
The federated access
into all these portals.

00:41:36.769 --> 00:41:41.939
We-- There was a partner of ours that, uh,
they were wor- they were using N8N, and

00:41:41.969 --> 00:41:44.679
they, they were around with my co-founder,
and they're like, "You know, the, my first

00:41:44.679 --> 00:41:48.845
thing I do every day is log into 38 N8N
portals and see if everything's okay."

00:41:49.145 --> 00:41:49.205
Todd Kane: Ugh

00:41:49.419 --> 00:41:51.799
Callen Sapien CEO Synthreo: It's like,
that is, that is not… I mean, like

00:41:51.899 --> 00:41:55.019
none of us got into… I mean, maybe
somebody got into it to do that type

00:41:55.113 --> 00:41:56.783
Todd Kane: Some, some automation nut, yeah

00:41:57.239 --> 00:41:57.699
Callen Sapien CEO Synthreo: Yeah, yeah.

00:41:57.699 --> 00:42:01.689
There, there are some you know,
that, that exist in the world.

00:42:01.709 --> 00:42:04.849
Uh, but, uh, and I, I don't
want to yuck anybody's yum.

00:42:05.079 --> 00:42:08.329
Uh, but, uh, but at the same time,
that isn't sustainable, right?

00:42:08.359 --> 00:42:11.809
And, and you're gonna miss something,
and something's gonna crash, and,

00:42:11.809 --> 00:42:13.479
and, and we're, you're gonna miss it.

00:42:13.519 --> 00:42:18.227
And, and so for us, we, we do look
to, to, to bring that You said

00:42:18.227 --> 00:42:22.497
it, manageability, guidability,
governance over, over the piece.

00:42:22.507 --> 00:42:26.627
W- w- it's interesting 'cause we
also had a, a recent, uh, partner

00:42:26.627 --> 00:42:28.667
that is a Claude network partner.

00:42:28.687 --> 00:42:31.097
They're, they're reselling… Not
really reselling Claude, but they're

00:42:31.097 --> 00:42:32.467
reselling a service around Claude.

00:42:32.827 --> 00:42:35.387
And they had a, they had a partner
that said, "You know, I'm, I'm, I'm

00:42:35.407 --> 00:42:37.737
over." You know, we started this
conversation by saying, "Hey, a

00:42:37.737 --> 00:42:41.317
new model might have dropped," uh,
and, and because it all sucks now.

00:42:41.597 --> 00:42:45.407
And, uh, and they, they said, "You
know, I'm tired of this, this rat race.

00:42:45.717 --> 00:42:48.977
I need to go to something that's
agnostic because if I pick a winner

00:42:48.977 --> 00:42:53.397
right now, I'm gonna be jumping every
six months to try and get the most out

00:42:53.397 --> 00:42:56.907
of this stuff." And they said, "Okay,
so what do we do with the last eight

00:42:56.907 --> 00:42:58.247
months that we've been in Claude?

00:42:58.647 --> 00:43:00.227
Do, how do I export this work?

00:43:00.237 --> 00:43:01.647
Where do I put my artifacts?"

00:43:01.817 --> 00:43:06.137
And, you know, the MSP's like, "I've,
I don't know. We'll, we'll export your

00:43:06.137 --> 00:43:09.997
chat history that we can, and we'll, you
know, see what we can do about your, your,

00:43:09.997 --> 00:43:14.557
uh, your projects." But the portability
issue and the, the, the other pieces that

00:43:14.557 --> 00:43:16.887
people are just starting to understand.

00:43:17.187 --> 00:43:20.087
You know, I- we call it internally
the Claude wall, uh, but it

00:43:20.087 --> 00:43:21.667
could be my chat tool wall.

00:43:21.837 --> 00:43:22.917
It could be Copilot.

00:43:22.927 --> 00:43:24.457
It could be ChatGPT.

00:43:24.467 --> 00:43:26.777
It could be, you know, uh, devs.ai.

00:43:26.777 --> 00:43:27.287
It could be HATS.

00:43:27.297 --> 00:43:27.977
It could be anybody.

00:43:28.007 --> 00:43:32.277
When we hit that personal productivity
wall that you alluded to, it, you just,

00:43:32.287 --> 00:43:35.947
you can't get anything else out of it,
and now your two options are, do I go the

00:43:35.947 --> 00:43:40.087
old way and build an app, and I manage
that app and the infrastructure, or do I

00:43:40.087 --> 00:43:41.867
figure out how to use the modern stuff?

00:43:41.917 --> 00:43:44.107
And that's, that's where we come
in and some of the others come

00:43:44.107 --> 00:43:48.677
in to deliver agents, uh, without
having to host the infrastructure.

00:43:48.677 --> 00:43:52.107
W- build MCPs without
having to spin something up.

00:43:52.117 --> 00:43:56.057
We had a partner the other day that
said that one of their clients connected

00:43:56.057 --> 00:44:02.967
their banking software through our
Excel app, uh, using a, a, an MCP

00:44:02.967 --> 00:44:06.757
they found on GitHub because Claude
told them to, to, to go do that.

00:44:07.077 --> 00:44:09.927
And it had two stars and no comments,

00:44:10.279 --> 00:44:11.359
Todd Kane: This sounds scary as hell.

00:44:11.997 --> 00:44:12.757
Callen Sapien CEO Synthreo:
banking through

00:44:12.959 --> 00:44:13.159
Todd Kane: Yeah

00:44:13.227 --> 00:44:17.067
Callen Sapien CEO Synthreo: And so, like,
those are areas where governance makes

00:44:17.067 --> 00:44:19.337
sense, and they still need to do that.

00:44:19.497 --> 00:44:20.877
So build the MCP.

00:44:21.447 --> 00:44:21.917
Uh, offer it.

00:44:21.927 --> 00:44:24.467
Even if you don't use 3.0, that's,
that's… For me, when we build

00:44:24.467 --> 00:44:26.217
an MCP, it's universal, right?

00:44:26.217 --> 00:44:30.777
If someone is, is dedicated, if they're a
maxer and they're using Ultra and they're

00:44:30.787 --> 00:44:33.947
going, you know, in Groq, and they're,
you know, they're taking their toket subs-

00:44:34.027 --> 00:44:38.697
token subsidies to the next level, don't
necessarily want them running on my, my,

00:44:38.737 --> 00:44:43.267
my, on, on that area, but we still need
to give MSPs a way of managing that.

00:44:43.277 --> 00:44:47.127
So that's when we, we build MCPs,
governance policies, observability.

00:44:47.297 --> 00:44:51.947
And I think all of the things that we've,
we managed before that I hope people

00:44:51.947 --> 00:44:56.247
don't take this pejoratively or, or,
or as a wagging finger, but that we've

00:44:56.257 --> 00:45:01.087
kind of went away from over the last
five or six years as we've resold a lot

00:45:01.087 --> 00:45:04.997
of SaaS and a lot of security products
without wrapping services around it,

00:45:05.267 --> 00:45:08.257
uh, is, uh, is it needs to be relearned.

00:45:08.597 --> 00:45:14.207
And one thing that's a little scary
to me is we've had so much M&A in

00:45:14.207 --> 00:45:22.329
the last 10 years that I wonder
how many, like, experienced service

00:45:22.329 --> 00:45:23.969
delivery people exist out there.

00:45:23.969 --> 00:45:25.769
You mentioned John Da- Dobbin.

00:45:26.149 --> 00:45:28.899
I, like, that guy's
worth his weight in gold.

00:45:29.109 --> 00:45:33.009
He has 24 years of delivering service.

00:45:33.129 --> 00:45:40.239
If I was an MSP, I would be grabbing onto
him and saying, "Okay, should we sell AI,

00:45:40.269 --> 00:45:42.099
and how should we build that offering?"

00:45:42.299 --> 00:45:45.859
And find that service manager that is so
passionate and had been in that thing,

00:45:46.089 --> 00:45:50.089
and have them reteach the entire company
on how to deliver services at scale,

00:45:50.109 --> 00:45:52.009
and then base your AI policy on that.

00:45:52.289 --> 00:45:56.389
That's, it's get back to the basics,
which sounds silly, but it's,

00:45:56.409 --> 00:45:59.727
it, it's, it, uh, the, the idioms
are, are there for a reason, you

00:46:00.027 --> 00:46:01.617
Todd Kane: Yeah, there's
so much truth in that.

00:46:01.647 --> 00:46:05.457
Like, I find everything in business and
somewhat, uh, I guess a large degree in

00:46:05.457 --> 00:46:08.327
life is you, you getting back to basics.

00:46:08.387 --> 00:46:10.947
It's just we've gotten so far
away from the simple things.

00:46:10.957 --> 00:46:14.957
Like, I always tie it back to, uh,
you know, the John Wooden a- approach,

00:46:14.967 --> 00:46:16.917
very famous basketball coaches.

00:46:16.937 --> 00:46:18.967
We're gonna start with tying our shoes,
and everyone's like, "What the hell

00:46:18.967 --> 00:46:21.327
are we doing?" It's like, eh, you know,
tie your shoes correctly, you don't

00:46:21.327 --> 00:46:24.477
get blisters, and then you're not out
of the game, and then a higher point

00:46:24.477 --> 00:46:26.497
scorer s- is in the game, we win, right?

00:46:26.497 --> 00:46:29.337
Like, all of this stuff from,
starts from absolute basics.

00:46:29.347 --> 00:46:30.487
So I think there's a lot of

00:46:30.686 --> 00:46:31.087
Callen Sapien CEO Synthreo: Угу

00:46:31.387 --> 00:46:32.107
Todd Kane: truth in that.

00:46:32.177 --> 00:46:36.837
Uh, and I am right behind you on, uh, you
know, let's get passionate about this.

00:46:36.837 --> 00:46:40.827
Let's start building an AI
practice because, as I said, your

00:46:40.827 --> 00:46:44.157
clients are doing this without
you, and they're doing it poorly.

00:46:44.217 --> 00:46:45.977
So they absolutely need your help.

00:46:45.987 --> 00:46:49.247
Whether or not they've explicitly
asked you or not, they need your help.

00:46:49.747 --> 00:46:50.967
So no, this has been great.

00:46:51.067 --> 00:46:53.377
Uh, really appreciate
you coming on, Callan.

00:46:53.767 --> 00:46:56.947
Um, if, uh, people wanna reach out
to you and know a bit more about

00:46:56.967 --> 00:46:59.217
what you guys are building in the
platform, where should they find you?

00:47:00.365 --> 00:47:05.185
Callen Sapien CEO Synthreo: Uh, either
Synthrio, uh, .ai or you can email

00:47:05.185 --> 00:47:10.935
me directly at callans@synthrio.ai,
and I'm happy to, happy to jump on.

00:47:10.935 --> 00:47:14.985
I've got a, I've got im- I've got-- My
link is public, so I love this industry,

00:47:14.985 --> 00:47:18.415
and thank you so much for having me
because this is a mission for us, right?

00:47:18.415 --> 00:47:23.535
We, we-- When we were building this
company, we, we saw this problem

00:47:23.535 --> 00:47:26.875
coming, and we actually thought,
"What if we were to build…"

00:47:26.875 --> 00:47:30.005
Because my co-founder built a
successful MSP and sold it and exited.

00:47:30.345 --> 00:47:34.415
He's like, "What if we built an
AI-native MSP and just went and sold?"

00:47:34.425 --> 00:47:39.205
And w- both of us realized how much
that this community has given us.

00:47:39.205 --> 00:47:39.635
I don't care.

00:47:39.635 --> 00:47:42.405
When I say community, I mean all
of it, ConnectWise, Autotask,

00:47:42.405 --> 00:47:44.805
Halo, all the, the individual ones.

00:47:45.075 --> 00:47:48.675
And we, we just want to help
get back to those basics.

00:47:48.675 --> 00:47:51.595
And, and so yeah, please reach out to
me, even if you're not a partner or

00:47:51.815 --> 00:47:53.245
interested in being a partner right now.

00:47:53.305 --> 00:47:54.625
W-w-we want to help

00:47:55.109 --> 00:47:55.309
Todd Kane: Cool.

00:47:55.369 --> 00:47:58.769
So I'll link to, uh, everything in the
show notes, but, uh, it's been awesome.

00:47:58.799 --> 00:47:59.219
Thanks, Calum

00:48:00.451 --> 00:48:01.161
Callen Sapien CEO Synthreo:
Thank you very much