Microsoft makes a massive U-turn on AI

Let’s summarize:

• Microsoft hands more control over AI back to humans
• AI actor Tilly Norwood wins lead role
• AI dictation tools are on the rise in the office
• Vibe coding could threaten Salesforce.com
• CPC increased by 15% this year

Microsoft makes major AI pivot after user uprising – Teams users will now be able to turn off CoPilot, Facilitator, and Summarization

Microsoft is mindful of the opposition from its Teams user base. The company has introduced new controls that allow Teams meeting hosts to turn on or off AI-powered meeting features during live meetings. This latest decision comes in the wake of customer backlash against Microsoft’s aggressive push for AI capabilities, most recently the Microsoft Teams Facilitator designed to monitor meetings. Privacy concerns have been raised as users question the privacy and security limitations of this tool. Microsoft’s response, as explicitly stated in a recent post, sought to address these concerns. “Microsoft Teams adds toggle during meetings to allow licensed hosts and presenters to take advantage of meeting AI… “Deployment will begin in early July 2026, with no changes to existing compliance or licensing requirements.” (Source: TechRadar Pro)

Why this is important for small businesses:

A typical pattern is: Technology companies release new features (i.e. AI) in a wave of options. Users flood. they complain. Tech companies roll back features. This is what’s happening here. AI and Copilot (at Microsoft) get stuck in your throat the moment you launch a team. That’s all great, but humans, not AI, decide when and where to use AI. Microsoft is doing the right thing by turning these features off instead of humans turning them on at their own discretion.

AI “actor” plays lead role for the first time

It’s only a matter of time before an AI stars in a Hollywood movie, and her name is Tilly Norwood. Last year, Tilly made headlines for: Newsletter reported on opposition from film industry professionals who were “furious at Tilly’s arrival”. Currently, Tilly has been cast as the lead role in the upcoming comedy-drama titled: out of position – The first feature film starring actors created entirely by AI. The story follows a self-aware AI as it navigates fame, identity, and autonomy in a surreal world called the “Tilliverse.” Unsurprisingly, the project has garnered a lot of buzz and backlash, as many in the industry argue that AI-generated performers could replace human talent. The film’s producers insist that Tilly is not intended to be a catalyst to replace human actors, but rather an exploration of new forms of storytelling. (Source: Newsletter)

Why this is important for small businesses:

Please stop fighting this. I think AI actors are here to stay, and the smartest human celebrities should campaign hard to license their images as AI creations before AI-generated actors become even more famous. One of the things I love about Till Norwood is that she, and digital works like hers, can be used by creators to tell stories on minimal budgets. This would not have been possible just a short time ago. I look forward to hearing such stories!

The rise of AI dictation tools in the workplace

Matthew Finnegan computer world We reported that the use of AI-powered dictation tools in the workplace is on the rise. Advances in large-scale language models (LLMs) allow employees to speak naturally, and AI automatically cleans up grammar, punctuation, and formatting, making voice input much more practical than older dictation software. And it’s not just a matter of practicality: these tools help employees complete tasks such as coding, writing, email, and brainstorming faster, allowing employees to get more done in a single workday. AI dictation tools can also understand spoken language with greater accuracy. One of the examples cited in the article is the AI ​​dictation tool Wispr Flow. It’s used by Chris Patalano, chief technology officer at Thumbtack, who says, “This is becoming the primary interface for all AI tools. It’s much more effective and efficient than typing.” (Source: Computer World)

Why this is important for small businesses:

Speech recognition is becoming an important way to implement AI, especially in small and medium-sized businesses. We’ve written about AI virtual receptionists in the past, but now we’re seeing AI apps being developed for office use, such as recording calls, meetings, and client and prospect visits, using those recordings to create transcriptions, and generating quotes and correspondence from those transcriptions, or simply updating CRMs and accounting systems. We expect to see more use of it in the coming years.

Salesforce SMB customers switch to Vibe-coded CRM

SMBs are reevaluating the cost-effectiveness of traditional CRM platforms. Some small and medium-sized businesses are increasingly replacing CRMs like Salesforce with custom CRMs that use vibecoding (which prompts an AI assistant to generate code for you). According to a survey of Salesforce admins, nearly 59% of admins say CRM is “increasingly complex to navigate.” Cost is also a concern as small and medium-sized businesses use AI coding tools to quickly build lightweight CRM systems tailored to their workflows. This trend is also visible in the use of other tools, such as Anthropic’s Claude Clode. According to information, SMBs are reducing software costs by 40-80% after replacing Salesforce with custom applications. Claude Code enables small engineering teams and non-traditional developers to build business applications in months. Companies are creating custom CRMs, billing systems, and ticket management platforms rather than paying for the extensive functionality of CRMs like Salesforce that they rarely use. (Source: Salesforce Ben, Information)

Why this is important for small businesses:

I don’t know if “vibe-coded” applications will replace platforms like Salesforce. Certainly, we see people using AI to develop integrated or even derivative applications within the Salesforce environment. But come on… are you going to entrust your company’s data to your kid who codes the app? Businesses need to work with a technology provider that offers a secure, private, and scalable platform with a large ecosystem of support, partners, experts, and developers. Salesforce and other leading technology platforms accomplish this in a way that goes far beyond what small businesses can do on their own.

15% increase in cost per click in 1 year

Digital marketing is becoming more and more expensive. According to a new CPC report from Dutch e-commerce platform Channable, average cost-per-click (CPC) for Google Ads increased by 15% year-on-year between June 2025 and June 2026, but advertisers saw a sharp decline in advertising efficiency. According to the report, return on ad spend decreased by more than 40%. This data was extracted from an analysis of 1.38 billion euros in verified advertising spend from over 10,000 advertisers in European commerce. The results warn that businesses will need to find new ways to acquire customers, as web domains become more competitive and paid advertising becomes less efficient. Companies may need to improve campaign targeting and diversify into other marketing channels. (Source: e-commerce news)

Why this is important for small businesses:

This is completely understandable given the supply chain problems caused by wars in the Middle East and other global hotspots. Or inflationary pressures from government spending. Actually…I’m just kidding. Normal inflation factors don’t affect the cost of a click, right? But its costs are rising at five times the rate of inflation. This is another way online advertisers (yes, I’m looking at you, Google) make money. And until AI replaces Google search with something more affordable, there’s little we can do as small business owners. I’m looking forward to that day.

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