
Mike Kelley & Mason Herbel
Short Clips
Mason Herbel
Mason Herbel describes the shift from an AI startup to Parallel Systems, where the first questions were about governance and company data. Some employees already used AI. Others had barely started. His advice for IT leaders: give people a clear route to approved tools, then make that route easy enough to use at work.
He suggests company enterprise plans, agreements about data handling, and a trial period for tools employees request. After the trial, check actual usage and whether another paid app already does the job. Blocking a website has limits when someone can reach for a personal phone. Mason puts it plainly: “So you may as well make it easy for people to use in a secured manner.” This is his proposed approach, rather than a report of a completed company-wide AI rollout.
We also get into choosing infrastructure one workload at a time. Mason recounts moving an engineering firm away from aging local servers after checking its remaining applications and Microsoft licenses. At an AI company, he argued for examining owned GPUs as API bills grew. He describes that proposal and the conversations around it; he does not claim verified savings from a completed GPU deployment.
For IT leaders trying to get a useful idea heard, Mason explains how he kept discussing the GPU proposal with a principal engineer. He also recalls asking to join a server installation early in his first job and learning by doing when the lead technician had to leave. The practical thread: ask how the work gets done, bring colleagues into the decision, and keep everyday IT needs covered while taking on new projects.
We review circuit consolidation, contracts, security, outage visibility, billing, and future flexibility to reduce chaos without forcing change.
Navigate through key moments in this episode with timestamped highlights, from initial introductions to deep dives into real-world use cases and implementation strategies.
[00:02:04] Introducing Mason Herbel
[00:07:30] How curiosity earns early responsibility
[00:11:10] Checking workloads before replacing old servers
[00:17:29] Why Mason proposed owned GPUs
[00:21:37] Getting a colleague behind the proposal
[00:24:21] Watch the business workflow first
[00:25:59] Staffing IT without neglecting the basics
[00:27:56] Parallel’s autonomous rail-car plans
[00:40:12] Make approved AI easy to access
[00:42:42] Mason’s prediction for open-weight models

453-Mason Herbel
Host: Mike Kelley
Guest: Mason Herbel
Mason Herbel: I have had an interesting entry into the IT world. I would say, I
built my first computer around, I think I was ten. My mom will say I was eight
years old though. She likes to give me more credit than I deserve. But, I
forwent a birthday party at a young age to buy computer parts off of Newegg
instead; a little bare bones kit and watch. And, I was just obsessed with tech
from a young age. So I built my first computer, started making websites around
age twelve. I would like mirror, templates off of these template websites that
you can use and probably not, super ethical nowadays to like download somebody's
template and then modify it and then sell it to somebody as a website. But when
you're twelve and you're making a website for your friends esports team. It is
what it is. And I really learned at an early age, I don't like programming. I
like putting the stuff together, making it happen, configuring systems. But the
building software is very tedious, right? It's one thing to write a script over
the course of three days. It's another thing to build an entire desktop
application that takes three years to come to fruition. Right? So, when I was
eighteen, I got my first IT help desk job at a small dental IT provider in
Houston. We had about two hundred and fifty clients all over, the greater
Houston area grew quickly there, became the help desk manager after about two
years, was able to get my hands into everything from solving weird Active
Directory replication issues between some of our bigger clients. Or one time we
had a doctor take his server like on a field trip. He took it home. He was
moving to a new office. He took it home for the weekend, brought it back to his
new office, and it wouldn't boot. It would just blue screen Windows Server. So I
had to run some things on his hard drive to like, fix it up. spent all day just
getting the windows boot loader to work again. I don't know why, but it wouldn't
boot. And from there, I know this is a very long winded answer, but at an early
age I always loved computers and was able to just level that up into other
positions. I did sales for a little while. I did the whole IT contractor thing
for a little while. And then one of my family friends, it's not who you know,
but it's who you know, that knows what you know. was head of HR at an
engineering company that was very upset with their MSP. they've been using it
provider managed service provider for a couple years. And they were at that
point where they could justify bringing it in-house. And so they took a chance
on me as their head of IT specialist at first, and I was able to just take the
reins there. And they had five on site Active Directory servers. We moved all
that up to Azure AD, did an entire entree migration, just completely got rid of
on site AD because they had a very distributed workforce to begin with. five
offices, forty employees across those, and then another fifteen just dotted
around the US. Nobody wanted to have to turn their VPN on to like receive the
newest updates from the group policy. So it just made sense to do a cloud
migration there. Learned a lot along the way and then moved on to another
position out here in California. And now I would say I'm on my third head of IT
position. So that's what led you guys to find me on LinkedIn, I guess.
Mason Herbel: There's a couple things that go into that. I think the first one
is always being curious. Even if it's not something that you could even wave a
finger at, you may as well ask and say, how does that work? Right. When it was
my third week at my first at Bat Dental, IT job and I was still eighteen and I'm
twenty. Four. Yes, I'm twenty four now. I had to do the math real quick. And
third week there they were installing a new server at a client. And I just said,
what's the process for plugging that in? I've assumed you guys are already
setting up all the gpos and everything, and I just have to go plug it in,
transfer the software. And because I asked those questions, they were like, tag
along, come see. And then it ended up being that I was thrown into the deep end
on that one. And the lead tech that was going to go with me had to go to a
different job. And I was there by myself calling the software provider, and
saying like, hey, I have this old server, I have this new server, help me move
the database and just got it done. So I think the willingness to ask and look
stupid gets you front of mind with your superiors so that they think of you when
they're like, hey, who could go fill in this gap? What about the super curious
guy that always wants to learn? And then the second one is, sometimes you have
bad bosses that really don't see what they have in you. They like to silo you.
You're getting done what they asked you to get done. And when you try to be
proactive, they'll be like, hey, wait, what business initiative was that work
for? Right. There's nothing that we thought needed you to go look up the best
antivirus provider this month. And it's like, guys, we don't even have antivirus
yet. Like, maybe we should get an EDR. So asking, but also having the right
people is a big thing for sure. as superiors.
Mike Kelley: Okay. You mentioned and or talked about that change from the five
on prem. Well, actually you said it was five locations, five on prem ad servers
and then migrated into Azure Active Directory. And then, leaned into it as it
went from Azure Active Directory into entra, talk about some of the experiences
and the challenges of, doing that. And are you finding yourself building more
cloud centric stuff or have you run into an organization yet? That's like, no,
we want everything on prem.
Mason Herbel: So I like that question because every ten years, it's like
cyclical that people are like all cloud and then they go back to on prem and
then they go back to cloud. And what really works is hybrid. You need to buy
things and host them locally, either in a co-location or get a good tier one
circuit piped into your building, and build a room with an extra split unit in
there for air conditioning when something is going to cost, I don't know. My
threshold is like ten thousand a month. If you're already spending ten thousand
a month on cloud services, you could probably buy a two or three hundred
thousand dollars HPC high performance computer system from Dell, Lenovo or Cisco
and amortize that over three years, lease it, whatever, and be in the black
making, a return on that investment. But when it comes to the Azure AD Astra
project, specifically, they had a bunch of old Dell T three twenty S or
whatever. They were all running Windows Server twenty twelve. And the options
were, do we do that CapEx of thirty or forty thousand dollars, get a bunch of
servers, buy all the device cows, user cows, whatever. Or do we take the three
softwares that run, which was like a licensing server for their GIS program, a
backup script for their cloud storage, because they had already migrated
everything from SMB to something called Lucid Link, which is mainly for
creatives like they have a Premiere Pro plugin. They have an After Effects
plugin. It's mainly for video workflows and creative workflows, but it's a bit
by bit storage system. So it will download the whole project file to your
computer, but then it will only transfer and upload the portions that you change
or download the new portions of the file. When somebody else made a change to
that file. And this was an engineering firm, so all of their CAD files and
everything were in Lucid Link. They have this fancy lib fuse magic that Lucid
Link had done with the software that goes on the computer to make it seem like
it's a local drive, even though it's a cloud drive. It would take, one hundred
gigs of of local cache to download all the recently opened files. But before I
came on, they had already did the file storage part. So now all that lives on
these servers is some very basic programs for their licensing. And then the
group policies and the Active Directory. So I said let's rip it out. This is
only going to be one hundred dollars a month virtual machine with all the bells
and whistles backups enabled on Azure. And you're already paying for Azure AD
because they had, Microsoft three hundred sixty five Business Premium, which
comes with all of these features already. So they're paying for it anyway. And
it was a month or two project to schedule with everybody, but I went on to each
person's computer and backed up their user profile to OneDrive, enabled that
sync, made sure that their Chrome or Edge profile was synced, removed them from
the ad, rebooted their computer, had them log in with their Antra instead joined
it and some of them took an hour. Some of them took four hours. I just did that
with every single employee, which you can't always do. But at that organization
of fifty sixty employees, it was, the best option, honestly. And now I've been
able to move on from them. They call me like once a month with an issue. The CEO
has kind of taken back the IT stuff and they have one, on site part time tech
that's like an intern. And I know I've gone on a few different tangents on this
answer, but it really is that per case, analysis that you have to do to decide
whether it's cloud or on prem. And I have another example with an AI workload
with much bigger numbers too.
Mike Kelley: Yeah, in all honesty, let me just throw this out there a little
bit. most of the people that I talk to are a little closer to my age and have
like twenty plus years of experience. So it's fresh to hear from you having that
six years of this working experience and being, having raised yourself into the
leadership. So I'm interested in your perspective and how it differs from what
I've had to go through because, the technology changes and what I've seen over
the last twenty four years, twenty five years, and compared to what you've seen
over the last six years. But so tell me about the AI stuff. Tell me about what
you did with AI workload.
Mason Herbel: I do want to touch on that though. It is interesting and I kind of
envy the people that started twenty, forty years before me because like you guys
got to really tinker with computers. My first computer was already like an I
five thirty five seventy K. We were already in the Intel I series, right? So I
never got to.
Mike Kelley: You never got.
Mason Herbel: I don't know.
Mike Kelley: Fifty six megs of RAM and that being the high end computer.
Mason Herbel: Exactly. So there's two sides of the coin there for sure. But at
one of my jobs, it was an AI based ad tech company. We had this awesome product
that gives students a place to learn more quickly. Their first product was
actually like an essay writing app, the co-founders, and it went viral on the
internet, four or five years ago. And they were getting payments, people were
using the product, but they didn't really feel good about what they were doing.
So they scrapped that and they replaced it with something that you would upload
your notes to. You take pictures of your textbook, you let it record your
lecture in the lecture hall or what have you. Maybe you're watching a video, you
let it record off to the side, just like meeting notes apps do, and it will
synthesize all that into flash cards, practice quizzes. It'll even make a
PowerPoint and you'll have a virtual tutor that you talk back and forth with to
help you learn your class content more quickly. You're not spending three hours
writing out index cards for your four hundred vocab word like nursing exam,
right? You would just put the textbook pages into study fetch, and it'll fetch
all that and turn it into all of these different learning modalities, and you
would pay us the same amount as ChatGPT or Claude. Twenty bucks a month. We have
a chat feature as well, so you could ask it other things, but it would always
steer back to like, hey, actually you left off on this flashcard set. Let's
continue. At one point, during a final season, we were spending hundreds of
thousands of dollars on API billing. Because when you build an AI app, they
charge you per token. A token is three to five characters, and people would
upload three hundred page PDFs and we would scan all that in. That's millions of
tokens that were synthesizing, and they call it embedding into the vector
databases for the LLMs to search in that infinite dimensional array. And like
six months before they made the decision to do it. I said, hey, like we spend
all this money, we should probably look into buying a couple million dollars
worth of GPUs, putting it in a data center, and then we own our platform and
we're able to do extra model training. And that's when you turn from a ChatGPT
wrapper, as they call it, into a company, making your own AI, because you can
retrain these public open weight models, with your data. So we had all these
learning outcomes because we would ask people what they made on their test after
using study fetch. And then we can use those inputs and outputs to make a
typically worse AI better for our use case. And then there's just all these
benefits that you can get from Self-hosting GPUs, even at, a couple million
dollars scale versus a billion dollar scale like space X or, Facebook is doing.
Right. Essentially, we spent millions of dollars on API costs making Google
rich, paying Google Cloud when we should have been investing sooner in the
infrastructure planning and getting quotes and laying out our roadmap for how we
can consolidate these AI costs into a capital expenditure that can be written
off. And all of these things around the time that I left them and came over to
my current job. one of their principal engineers had the same epiphany six
months after I did. I was new at the time when I suggested it. So they were kind
of like, we're moving too fast. We don't have time for that. Right, even though
the co-founders are younger than me, which is part of the problem, I guess it's
another double edged sword of having great ideas, moving super fast, but not
having worked at a large enterprise before, seeing how things are done
typically. Which is good because you have new ideas on how to do things. You're
not trying to break old habits. But sometimes it gets in the way of things. And
that's what I alluded to earlier, is when you don't have good bosses that they
hire you, they give you the title, they give you the paycheck, but they don't
want to let you run with it because they don't have enough experience delegating
and seeing the fruits of that delegation. So they kind of pigeonhole.
Mike Kelley: So how do you or what would you recommend to those that are
listening? How do they deal with that? Is it just, you know what, you're better
off just scrapping it and go and finding a new place or a better boss or are
there things that you've learned and experienced in ways to deal with that and
to try to help shift that old guy like me shift my perspective to see and
empower you to let you go and do.
Mason Herbel: Sure. I think there are a few things, but the main one is this
quote from, President Reagan. he essentially says a man has no limits when he
does not care who gets the credit. So that same principle engineer that had the
same epiphany, I was in his ear the whole time. I was like, hey, look at this AI
model on Hugging Face. Hey, look at how much an eight GPU cluster cost. Maybe we
do spend enough to go buy one. And you know, it's a good idea and you know it's
going to benefit the business. I've always been a company man, even when I do
get frustrated and I might go on LinkedIn and rage, apply to five jobs or
something and say, get me out of here. It's against my nature to actually silent
quit or anything like that because I want to see the people around me succeed
and do well, and for everybody to have a great time. And the just numbers keep
going up, right? So yeah, the other folks around you that might have a little
more pull and. Showing leadership that it's not just your idea.
Mike Kelley: It's interesting you stated that way. And I think back to part of
where we started the conversation of, what are the things that helped you learn
or helped you succeed and find your way to a leadership chair? I think that
right there is one of the key things that helps us is when people see that we're
there to help them, I'm not looking to win for me. I'm looking to win for us.
I'm looking for how do I help the organization? How do what we do or how does
that enhance or add to? I think that's a critical piece. and, so often, with
these conversations, when I'm talking to people, it's, well, you got to listen
to the business, you got to understand the business. I'm not hearing you say
that, but you're showing that you need to, but you're hitting on some of the
other key pieces that help you grow and bring value.
Mason Herbel: Yeah. I think when you work at places that have a large or all of
the employees as high performers, very flat organizations like the one I work at
now, where our head of engineering has twenty direct reports, and those people
might have zero or three people under them. There's not these massive, tree
branches with all these limbs in our org chart. I think that lends itself to
like, everybody understands the business. It's kind of a prerequisite to work
there that you need to understand how do we make money? How does the business
operate? And especially it being a cost center almost all the time, we need to
increase productivity across the rest of the business. And there's no way you're
going to increase productivity of a CAD workflow if you've never looked over the
shoulder of one of the engineers that uses CAD and been like, what did you just
do? You joined those two pieces of the assembly. What does that even mean?
Right? You need to understand those business processes for sure. And all of the
habits I've formed are definitely based around that. Even if I didn't say it up
front, it's a very important to be the I think I heard this on one of the other
You've Been Heard podcasts. It's important to be the IT department that people
want to come to and share what they're working with on, instead of be the one
that they dread calling because they know they're going to take their computer
for an hour and a half.
Mike Kelley: And it definitely is, I've worked at both of those types of
organizations. And it's definitely, it's a gift. And, sometimes it's a dual
sided gift. But when the organization looks to you or looks to it for the
solutions that everybody comes to you looking for help and they're expecting
that level of help, that's a gift. But it's also, a huge strain too, because now
everybody's looking to you and you're getting taffy pulled in so many different
directions. so it can be both, but recognize it for the true gift of they trust
you and they want to, they're looking for your advice. You've Been Heard, right?
Mason Herbel: You can definitely spoil people by being too good of a it,
personnel. It's true. And then you just have to hope that the leadership above
all those people that are coming to you and putting all these things on your
plate, recognize the impact, and then they'll let you hire other people to help
because I've seen where, yeah, sure, you're great. And people are coming to you
and bringing all these problems to you and you're helping them solve it, but
then something else falls to the wayside, like the conference rooms, speakers
not working when that should be one of the basic things you're doing, or making
sure that a new onboarding laptop is ready Monday morning instead of working on
all the cool shit. You also have to make sure that you get all the basics out of
the way, and that if you are working on all the cool shit, leadership will hire
other people to help you with that stuff.
Mike Kelley: So, if you don't mind, what exactly is the goal of the organization
that you're at now? And what are your plans when it comes to the thoughts of,
okay, you talked about AI at a level that I haven't had a chance to talk to too
many people about. What are you thinking on when it comes to AI and the new
organization and trying to help them there, or is there already a defined path?
Mason Herbel: No, there's not a defined path currently. It's definitely felt
like I was hit with a bucket of cold water when I went from the AI native
startup to this other startup. Granted, also a startup, but a few years older.
and a little further along and a little more mature in their business processes.
So Parallel systems is a train manufacturer, but it's not a normal train. It's
not one of these diesel engines where they'll have two or three on the front
pulling eight hundred cars. And it takes a mile to stop. Ours is a
self-contained rail car with batteries. Motors leader if you've ever seen a
Waymo on the street. I don't know if they have those everywhere now. Yeah. Or
Zoox. Exactly. It's an autonomous rail car. You put one container on it. you can
have a bunch of them in a platoon moving along together. You can see on our
LinkedIn, and they'll go up to five hundred miles, and then you'll still have an
eighteen Wheeler take it for the last mile, but it is cheaper than an eighteen
Wheeler by a mile. It is getting a lot of trucks off of the interstates. If this
all continues to go well and our business continues to thrive, we'll. We'll have
these out there in the wild and. A prime example of where this will help will be
the shipyards. They. Sometimes they have the railroad tracks right next to the
shipyard, but it can take up to three days to build a train to maneuver all the
rail cars and put them in the right order and then hook them up. And it requires
dozens of acres of rail yard to maneuver all of this stuff. So at a shipping
yard, draining. So they take the containers off of the ship, and they put them
on an eighteen Wheeler. And then that eighteen Wheeler could be sitting there
for, like, an hour waiting on his container to come off the ship. So he had to
drive however far to get there. He has to wait there, probably running his
engine for AC depending on where he's at and what time of the year it is. So
burning gas costing money, and then he has to take it to where it's going, which
is probably onto a train and then going somewhere else. And there's thousands,
tens of thousands of these containers on these ships. Parallel will have this
self-contained car, the shipping management system that they already have,
telling them this container contains this and is coming off this ship this day
will ping the parallel brain, and that rail car will be there at the time that
it needs to be. Automatically. And then somebody with the crane. The cranes
aren't automated yet. That's not our business yet. So somebody puts it on there
and then that takes it five hundred miles, possibly further, because we can fast
charge overnight and then take it another five hundred miles on existing
railroads. It all runs on existing railroads. We don't need any third rail or
anything fancy. And then wherever it needs to go, the Walmart eighteen Wheeler
comes and picks it up. He can go home to his kids the same night because he's
only taking it ten or fifty miles. He's not taking it seven hundred miles
anymore. So again, it's just cheaper, it's faster, it's more economical. It gets
drivers home sooner. It's reducing traffic. It's reducing emissions. It's just a
win win win product.
Mike Kelley: Well what I'm thinking is, it sounds like it's almost an autonomous
chassis. So those containers come off of the ships and then they go onto a
chassis on that dredge, and then the train cars that they go on to are versions
of the chassis also where they can stack them on that and have multiples or two
of them on a, one rail car. And what I'm envisioning is that bottom part of it,
that's between the container and the wheels that are on the track is where all
of the battery and the brains and everything else. Exactly. Right there. And
then it's just moving that individual cargo container.
Mason Herbel: Exactly.
Mike Kelley: Yeah. That's cool. It's interesting because I've been in
transportation or the majority of my career. So I've been working with those
eighteen Wheeler trucks. And some of what we were doing was we were taking and,
doing innovative things of like bringing the the rail car and, and the one that
they set it on for the trucks that are moving it because the containers
themselves usually don't have wheels. But we were running the eighteen wheelers
that had the wheels, so they would pick that up with the crane, set it on the
flatbed rail car, and then move that and, intermodal and the ones that are
coming off the ships and then going on to rail and then going on to an eighteen
Wheeler, that's intermodal too, because it's multiple types of modal
transportation. except we thought we were innovative when we were working with
the rail yard to take our trailers with the, tires on them, set it on that
flatbed and then run it.
Mason Herbel: Yeah.
Mike Kelley: I wonder about the puzzle you've got. So you've got fifty of these
parallel cars at one of the shipyards and you start loading them up. But one
like the fifteenth in line has a priority, and he needs to get to the front of
the line and the inner shuffle of all of those interconnected cars. And they're
not platooning, but they're solving the problem themselves. I assume to help get
that one to the front of the line so that it can head down the track.
Mason Herbel: Yes. So there is a lot of work happening right now with the
dropping off of cars, just like you're saying in the rearranging. The beauty of
it as well is it's also safer for the existing railroad workers because it's not
a linkage in between the cars. There's this other mechanism. They've come up
with these two pressure plates that go together to tell the cars, like how close
they are to each other. They're never actually, interlocked together with the
really big clasps that they use. Apparently people lose fingers weekly and
people get hurt a lot in between those rail cars. And our system, like you said,
we have fifty number fifteen needs to get dropped off. The first fourteen are
going to speed up a little bit, give some room and they're going to know where
the switch is on the track, because we're using GPS with super like up to two
centimeter accuracy on our GPS. And then the sixteen onward will give it some
room as well. And then somehow, I guess a lot of the switches are manual. So I
guess the shipyard or whoever's receiving it would know that they're waiting on
that one. They would be there to switch it. The first fourteen would keep going
a little bit. Maybe they slow down to wait for their friends to catch up. Number
fifteen gets put onto the other rail section. Yeah. The diversion. Thank you.
And then the switch gets put back. So the plan is to sell the vehicle to the
rail, to the operators. We're not we don't want to take money for your
container. We want to sell the vehicle and then sell the software and then let
them operate it. So the person doing the switch would tell his comm center, hey,
I put the switch back, send them on their way. And then whoever hits the button,
it's the button. And then the next, cars keep going and then they catch up with
their friends. So there's so many different ways to skin the cat. That's how I
speculate that it will be done. But by not having those linkages in between the
cars, it enables us to do these drop offs and things like this.
Mike Kelley: Chassis is the word I couldn't remember. Because chassis is what
the container gets put on, whether it's for the train or whether the eighteen
Wheeler.
Mason Herbel: Right. That makes sense.
Mike Kelley: So we started off on this and, obviously you're going to be
leveraging AI for some of those decisions for the. Fourteen you know, we were
talking about car number fifteen, trying to get to the front and all of those
pieces and knowing where they are and what they need to do and, some of those
communications. But what are your plans for like the AI within the organization
or, how are you? Maybe the other question is, all right, so you've got the
engineer who doesn't have a Claud account, doesn't want a Claud account, and is
still bringing value to the organization. How are you working with those kinds
of individuals and, what are your thoughts around trying to work around that
and, all of the governance and the guardrails and, anti hallucinations. How are
you dealing with that kind of stuff.
Mason Herbel: Yeah it's very interesting. It's a little bit of an uphill battle.
It's not as bad as I thought it was. When I first got here, only HR and finance
are using AI powered, none of the programmers using it. And then I learned,
okay, a few of them are using it. They have the Claud code plugin on their
Visual Studio code, but they've never heard of cursor. And I think the reason
they have been hesitant is because our head of infrastructure and cybersecurity,
my boss and his first question was what you ended with there and how do we
govern this? How do we make sure it's not going crazy? The hallucinating is kind
of up to the user to trust but verify. But the data loss protection, the making
sure that users aren't using their own personal AI subscription and uploading a
confidential PDF into it, things like that. There are a lot of tools for that.
Cloudflare has a really cool one. If you've ever used Cisco Umbrella or Zscaler
or any sort of device level firewall, Cloudflare has their Cloudflare one
platform, which started as Cloudflare Access and Cloudflare Warp. But with
Covid, everybody started working from home and your normal network perimeter was
no longer easily trustable barrier. You can't just say like, hey, they're in the
office, they're allowed to go access this, that, and the other. We know we're
monitoring their traffic because now they're working from home three days a
week, and we have no control into their Comcast or Spectrum modem. So you need
to take the firewall and move it from the network to the endpoint. Cloudflare
was one of the first big ones to do this. And more than just DNS filtering like
umbrella would do. And they will monitor every packet. You can set all these
different rules. You can, figure things out. I start with minimum DNS level
filtering. So if we've disallowed ChatGPT and they try to go to ChatGPT on their
work device. It's going to be like, you're blocked. Go to Claude or vice versa.
But then even deeper than that, they've launched some features, by working with
the AI providers and also their own forensics and reverse engineering to inspect
even the MCP calls. So when you have their proxy enabled with their agent on end
points, it will see the HTTP request body that is calling to an MCP server.
right. So like when you link up gmail to your ChatGPT, it's using MCP server to
make those API requests, to gmail to read your email and everything. So they
figured out a way to filter those out. And then they can scan for PII or
sensitive information or things that you've set as, words to flag, things like
that. So the tech stack is catching up in terms of catching people. But I think
at a basic level, if you're allowing AI in your organization, your policy needs
to be you're only allowed to use these approved apps, which we purchase
enterprise plans for. And we have a data processing agreement. You can be a
little bit more lax about it and be like, hey, if you have one that you like to
use, we'll buy it for three months. We'll put the company card on it. We'll get
the enterprise one, and then we'll evaluate in a few months to say like, how
much were you actually using it? What were you doing in it? Could that have been
done in the other app? So we're not double paying. But having that low friction
to it is really what keeps people from trying to skirt the line, because if you
tell them not to use it, they're going to just use it on their cell phone and
turn the Wi-Fi off on their personal device and keep using it. The cat's out of
the bag. We can't undo it. We can't get rid of AI. So you may as well make it
easy for people to use in a secured manner.
Mike Kelley: It's interesting. I've run into a couple of the, AI security groups
in our companies and like, one of them was, oh, it's just we've got a plug in
for your browser. And right. We will stop them. By, you have to install this
plugin on each of the browsers. And I'm like, that's not going to work. I need
this at a deeper level than that because, somebody's going to go to their phone
and ask how to get around it and then just get around it.
Mason Herbel: Exactly. Tools like like Cloudflare one or, Zscaler, I'm sure
Cisco zero trust Network access has come up with a way to do this. They hijack
your DNS settings and your proxy settings, whether it's windows, Linux, Mac OS,
they do whatever they're doing in the background to hijack that, and they proxy
it through their servers. What I like about Cloudflare is they have like four
hundred points of presence all over the US. So there's typically a data center
that's doing packet inspection that's within one hundred milliseconds round trip
time. So it's really not impacting the users too much.
Mike Kelley: I have been enjoying this conversation. I hope it's been
entertaining for you. unfortunately, we're running tight on time. I did prep you
and warned you about a question that I was going to ask. So make that
prediction. What do you predict that we're going to be talking about in eighteen
months that we're not talking about today? What do you think's going to pop up?
Mason Herbel: I've been mulling on that throughout, and I think it's the same
answer that first popped up in my head, which is open weight models, which I
mentioned briefly earlier. But these models have all these different parameters
and categories of things that they know in their memory that they were trained
on. And the edge right now that the frontier models have is they have all this
brain power that they've hired for hundreds of millions of dollars and poached
from this, that and the other company to help them create those category
weights. So they're doing these trainings and they're putting these weights to
the parameters. I'm probably butchering that, but the open source models with
the open weights that you can see how they trained it. You can see if they gave
this type of behavior, more emphasis versus another one like ChatGPT being
overly nice, you would be able to see that in the weight data if it was open
source, but it's closed right now. So as the open source models get better, the
deep seeks the gemas, the llama models. Then it will become more accessible and
it will become more transparent. We might not even need as much regulation
around it if it's just open source and the graybeards that have been doing it
for a while that care about security on GitHub and everything, or making sure
that it's not going to go hack the world, that is the thing we're going to be
talking about in eighteen months. I think that anthropic and ChatGPT, and
they're trying to build all this hype and like all this FUD around their model
being the scariest and the most capable, but all of the publicly available ones
are catching up for sure.
Mike Kelley: Yeah. And actually, one of the things that I've been surprised
about is how many of these models people are being able to, or starting to be
able to install on personal machines and, have self-contained or, fairly
contained and be able to do other work with those things. I was talking to a
former colleague and they were, he was telling me about how they were doing
that, to comb through all of the different logs at an organization to find
different things. And they were finding indicators faster than the MSPs or MSSPs
and that are using some of these larger models, as part of their MSSP offering.
So it was kind of interesting. So, I like that. I think you're right. I think we
will be talking deeper and, for sure more than just tokens right now, there
seems to be a lot of discussion around tokens. And then of course, the
Graybeards like myself trying to figure out the governance models and how do we
put the guardrails in and, how do we teach people to use it responsibly and all
of those kinds of things. So I appreciate your time, Mason. I invite anybody
that has listened to this and is interested. Reach out to me through the
youvebeenheard.com community. and if you got questions about these kinds of
topics or want to learn more or, you got some ideas that you want to bounce off
of Mason or try to help him, help parallel get even better, hit him up in the
community, hit us all.
Mason Herbel: Up. Yeah. Of course, tag me in there. And I really enjoyed this
conversation. Mike, I appreciate it And I feel Heard.
Mike Kelley: Oh right on. Appreciate your time. Thank you for your expertise and
for sharing with us.
453-Mason Herbel
Host: Mike Kelley
Guest: Mason Herbel

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