Rise in Remote Work Drives New Ventures; Insurers Address AI Risks as CISA Alters Info Sharing

Business of Tech: Daily 10-Minute IT Services Insights

Remote work is driving a significant startup boom, reshaping the IT services market. A recent study indicates that companies with higher levels of remote work during the COVID-19 pandemic have seen a notable increase in employee startups, with an estimated 11.6% of new business formations attributed to this trend. Despite major corporations reinstating return-to-office mandates, remote work adoption in the U.S. has risen from 19.9% in late 2022 to 23.6% in early 2025, highlighting a growing demand for tools and services that support distributed teams. This shift presents both opportunities and challenges for employers, as they risk losing key talent to new ventures while also facing higher employee attrition rates.

The insurance industry is beginning to address the risks associated with artificial intelligence (AI) by offering new products to cover potential losses from AI-related errors. Lloyds of London has introduced a policy that protects businesses from legal claims arising from malfunctioning AI systems, reflecting a growing recognition of AI as an operational risk. This development raises important questions about accountability and liability when AI systems fail, as seen in recent incidents involving customer service chatbots. As insurers start to underwrite AI risks, companies must adapt their service level agreements and governance structures to meet new requirements.

The Cybersecurity and Infrastructure Security Agency (CISA) has announced a significant change in how it shares information, focusing on urgent alerts related to emerging threats while reducing routine updates. This shift, coupled with budget cuts that could reduce CISA's funding by 17%, raises concerns about the agency's capacity to respond to increasing cyber threats. IT services firms and cybersecurity vendors must adapt to this new landscape, as the responsibility for threat detection and response shifts more towards the private sector. Organizations that previously relied on CISA for support may find themselves facing increased operational risks due to reduced visibility and slower response times.

In a related development, Microsoft has extended support for its Office applications on Windows 10 until October 2028, allowing users more time to transition to Windows 11. This decision reflects a broader trend in the technology sector, where companies are adapting their support strategies to meet user needs. By decoupling the upgrade cycles for Windows and Office, Microsoft acknowledges the resistance to forced upgrades and the importance of maintaining enterprise customer relationships. This extension provides IT service providers with additional time for operational planning while emphasizing the ongoing need for modernization in the long term.

Four things to know today

00:00 Remote Work Fuels Startup Surge, Alters IT Talent Strategies Amid Growing Demand for Flexibility

05:07 From Chatbot Lawsuits to Pontifical Warnings: AI Errors Now Seen as Business and Social Risk

07:57 CISA Alert Shift and Budget Cuts Signal Rising Cybersecurity Burden for Private Sector

10:08 Office Gets a Lifeline on Windows 10: Microsoft Decouples OS and App Upgrades Through 2028

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