Windows 11 and Windows 10 operating system logos are displayed on laptop screens for illustration photo. Krakow, Poland on February 3, 2022. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
NurPhoto via Getty Images
Here are five things in small business technology news that happened this week and how they affect your business. Did you miss them?
This Week in Small Business Technology News
Small Business Technology News #1 – Microsoft Warns: Windows 11 agentic features may hallucinate.
Microsoft has introduced experimental agentic AI features in Windows 11 – but warns they may hallucinate, produce unexpected outputs, and pose new security risks. These features are optional and must be manually enabled, with clear warnings about potential instability and vulnerabilities. Microsoft admits AI agents may generate inaccurate or unexpected outputs due to current limitations in model behavior. New attack techniques like “cross-prompt injection” can trick agents into executing malicious instructions hidden in documents or UI elements, which could lead to malware installation, data leaks, or unauthorized actions. Until Microsoft updates these tools with better protections, they’re best treated as experimental and should only be enabled by users who understand the potential consequences. (Source: TechPowerUp)
Why this is important for your small business:
There’s so much uncertainty around the accuracy and reliability of AI already, and this announcement doesn’t help. Why do tech companies release products that have “current limitations in model behavior” anyway? What business owner or professional would even consider using these tools when the companies that produce them say right at the start that these tools don’t work well enough?
Small Business Technology News #2 – Construction workers are cashing in on the AI boom.
The AI boom is creating a lucrative opportunity for construction workers, especially those building massive data centers for tech giants like Amazon, Google, and Microsoft. Skilled tradespeople are seeing pay increases of 25-30 percent – with some earning well over $200,000 annually – thanks to high demand and a shortage of nearly half a million workers. Example: DeMond Chambliss – a former drywall business owner in Ohio – now supervises 200 workers at a data center site and makes over $100,000 annually. In Oregon, electrical safety specialist Marc Benner earns $225,000/year. Some perks included in these jobs are heated break tents, free lunches, and daily bonuses up to $100/day. Some companies even offer remote project management roles, expanding opportunities beyond on-site labor. The surge highlights how AI’s infrastructure demands are reshaping labor markets, creating both opportunities and challenges for the broader construction industry. (Source: TechCrunch)
Why this is important for your small business:
The benefits won’t end with data centers. I believe that, thanks to AI, there will be a surge in the number of contractors and others that work with their hands because this type of profession won’t be one that can be replaced by technology anytime soon. Plumbers, electricians, landscapers, no name it: these will be more sought after professions that will pay higher.
Small Business Technology News #3 – Amazon releases AI agents it says can work for days at a time.
Isabelle Bousquette of the Wall Street Journal reported that Amazon Web Services (AWS) has unveiled “frontier agents” – a new class of autonomous AI systems designed to work for hours or even days without human supervision. Announced at this year’s re:Invent conference in Las Vegas, these agents aim to automate complex enterprise tasks such as software development, security, and DevOps, marking one of AWS’s most ambitious moves into agentic AI. AWS Chief Executive Matt Garman said that after “an enormous amount” of software engineering, these agents are capable of sustaining long-running tasks without the need for human guidance. He added the company took a “half step back” at the start of the AI boom but frontier agents have placed Amazon back on the map of AI innovation. By promising agents that can code, secure, and manage systems for days without human intervention, AWS is betting that agentic AI will become the backbone of future enterprise operations. (Source: Wall Street Journal)
Why this is important for your small business:
This is the inevitable next step: agents that don’t merely perform a single task, but run all day doing a number of tasks like a human worker. That is, of course, assuming that these agents don’t hallucinate so much that their work is rendered unreliable and useless!
Small Business Technology News #4 – AI helps drive record $11.8 billion in Black Friday online spending.
U.S. consumers spent a record $11.8 billion online on Black Friday 2025, according to Adobe Analytics. This marks a 9.1 percent increase from last year’s $10.8 billion, driven largely by mobile shopping and AI-powered tools despite ongoing inflation and economic uncertainty. AI-driven traffic to US retail sites skyrocketed 805 percent compared to last year. Globally, AI agents influenced $14.2 billion in online sales – $3 billion of which came from U.S. consumers. (Source: Reuters)
Why this is important for your small business:
Thanks to AI, products are being recommended to shoppers automatically based on other purchases or behaviors. Reminders are automatically sent. Ads are driven to potential buyers. Searches for products are easier and more interactive. Retailers and e-commerce companies are using AI to nudge more consumers into making more sales and they’re able to do so with much less overhead, which means that margins are higher.
Small Business Technology News #5 – Unpeeling Nano Banana Pro: Google’s upgraded AI image generator is put to work.
Ruben Circelli of PCMag tested Google’s upgraded AI image generator Nano Banana Pro – built on the Gemini 3 Pro model – and found that it significantly improves text rendering, multi-image blending, and creative control. Circelli highlighted how Nana Banana Pro outperforms the original Nano Banana tool, making it a powerful option for both casual users and professionals who need polished visuals, infographics, and design mockups. Unlike most AI image tools, Nano Banana Pro can generate legible text inside images, from short taglines to full paragraphs. Users can upload up to 14 images per prompt and merge up to 6 images simultaneously, doubling the limit of the previous version. High-quality resolution was another feature Circelli said was a major improvement with images being produced “at about 2K resolution.” One weakness Circelli pointed out was taking a picture of his living room and prompting Nana Banana Pro to insert products from Amazon into the photo – it was only able to the prompt in reverse, replacing Amazon products with his personal items. (Source: PCMag)
Why this is important for your small business:
Up until now, AI-based image generation tools have been cool, not exactly ready for prime time. Nana Banana Pro promises to change that, making this tool something that businesses can now use reliably. Is that the case? I’ll give this a whirl in the coming months and report back, just like I did here.
Each week I round up five small business technology news stories and explain why they’re important for your business. If you have any interesting stories, please post to my X account @genemarks