Walmart's Healthcare Decision, Data Breach Dispute, and AI Strategies

[00:00:02] It's Friday, May 3rd, 2024, and I'm Dave Solt. Four things to know today. Challenges in healthcare drive Walmart to close physical health clinics and end virtual care. A managed services dispute, Barry Dunn, and reliable networks clash over responsibility in a data breach.

[00:00:19] The HPE report unveils major gaps in organizational AI strategies impacting data security and ROI. And white-collar woes. High-earning professionals face job market slowdown despite economic growth. This is the Business of Tech. Are you and your clients tired of the time-consuming ticket tennis of coordinating meetings and

[00:00:45] help desk calls? Wouldn't it be better to automate this process with a tool that connects directly to ConnectWise Manage or Autotask? TimeZest offers scheduling automation that gives you complete control of your schedule and eliminates the hassle of calendar ping-pong.

[00:01:04] As the only service designed specifically for MSPs, it integrates into your workflow and makes scheduling appointments easy on you and your clients. Plus, you can try TimeZest for free. Visit timezest.com slash MSP radio and use the code MSP radio to get 10% off your first year of TimeZest.

[00:01:31] Walmart is closing all 51 of its health centers and discontinuing its virtual care program due to a lack of profitability. Despite efforts by retailers like Walmart, Best Buy, and Amazon to make healthcare more convenient and affordable, the challenging reimbursement environment and escalating operating

[00:01:47] costs have made the care business unsustainable. Walmart's decision reverses its previous plans to expand its health clinics. Existing patients will continue to be served. Closure dates for the health centers have yet to be specified. Why do we care?

[00:02:04] I considered this for the Big Ideas section and I intentionally broke it out. What's going on in healthcare that Walmart, Best Buy, and Amazon are struggling to build viable businesses in it? From a technology perspective, there might still be an opportunity to innovate in healthcare

[00:02:19] delivery through technology, particularly in telehealth and digital health monitoring tools, which can leverage their tech infrastructure and consumer reach without the high overhead of physical clinics. That said, we care because it raises some questions about this market. I don't claim to have the answers.

[00:02:37] Sometimes, highlighting a problem is the value. Another case of a managed services provider and their client getting in a spat. A Maine consulting firm with a medical data analysis business on April 25th submitted a data breach notification stating that it will notify 1.1 million U.S. residents that

[00:02:57] hackers compromised identifying data stored by its health analytics practice group. Barry Dunn McNeill & Parker Consultancy blamed their managed services provider, Reliable Networks of Maine, for a data breach. Reliable Networks, however, has denied responsibility, suggesting that the consultancy is trying to control the narrative by casting aspersions.

[00:03:18] Barry Dunn alleges a data breach occurred due to unauthorized access to Reliable Networks systems. However, Reliable Networks disputes this, stating that the breach occurred on Barry Dunn's network and systems and not on any system or network owned or secured by Reliable.

[00:03:35] Reliable Networks also states that it was not retained by Barry Dunn to serve as its cybersecurity protection and prevention vendor and that the breach impacted none of its other clients. So far, it's a war of words on websites. So why do we care?

[00:03:52] The primary takeaway remains to have a good contract that defines the engagement. Your dirty laundry gets aired when an incident occurs. The need for thorough risk management strategies that include robust contractual agreements, clear delineation of responsibilities, and comprehensive cybersecurity measures that

[00:04:10] align with the critical nature of the data handled, especially in sectors as sensitive as health care, is really apparent here. And this is the real-world result when that isn't clear. A global report commissioned by Hewlett Packard Enterprise reveals that many organizations

[00:04:29] overlook critical gaps in their AI strategies, leading to fragmented approaches and potential delivery issues. The report highlights how low data maturity levels, deficiencies in networking and compute provisioning, and neglect of ethics and compliance considerations are key areas of concern.

[00:04:47] It also emphasizes the importance of quality data input and provisioning for the end-to-end AI lifecycle. Failure to address these blind spots can result in inaccurate insights, negative ROI, and risks to data security and brand reputation. Microsoft has released its first AI Transparency Report, highlighting the creation of 30 responsible

[00:05:08] AI tools, the growth of its responsible AI team, and the implementation of risk mapping in developing generative AI applications. The report also mentions the addition of content credentials to image generation platforms, and providing tools for Azure AI customers to detect problematic content and evaluate

[00:05:25] security risks, including new jailbank detection methods. Microsoft is also expanding its Red teaming efforts for safety testing of its AI models. And Microsoft has banned U.S. police departments from using its Enterprise AI tool for facial recognition.

[00:05:42] This decision is part of Microsoft's efforts to address concerns about the technology's misuse and impact on privacy and civil liberties. Why do we care? HP's report highlights the opportunity right now. There is your consulting opportunity. Ensuring data maturity should be a priority with investments in data governance frameworks,

[00:06:03] quality control mechanisms, and advanced data processing technologies. Lots of really good big ideas to end our week with. From Business Insider, despite low unemployment rates and a growing economy, white-collar workers are struggling to find high-salary jobs.

[00:06:22] While hiring rates for lower earners have held up, hiring for those making over $96,000 has slowed significantly. Possible explanations include fewer job openings in corporate jobs, struggling industries employing high-earning professionals, or companies cutting back on expensive workers.

[00:06:40] This slowdown in white-collar hiring has led to professionals feeling trapped in their current jobs and unable to find new opportunities. The situation has created a sense of recession among white-collar workers, impacting the public discourse about the economy.

[00:06:54] The trend may continue, particularly for professionals with advanced degrees, as AI tools encroach on their tasks. MIT Technology Review examines an AI startup called Synthezia that has developed hyper-realistic deepfake avatars that mimic facial expressions and movements.

[00:07:11] The avatars are created by training AI models with data from professional actors. Synthezia's technology has advanced to the point where the avatars can match mouth movements and hand gestures and even convey different emotions. The company emphasizes obtaining explicit consent and has implemented content moderation systems to prevent misuse.

[00:07:32] While the technology shows promise, concerns about misinformation and the authenticity of content remain. The publication also has one of their reporters undergo the process for a first-person account. I spotted two stories this week about data centers and power consumption.

[00:07:48] First, The Washington Post highlights that efforts to control the rapidly growing internet data center industry are increasing as concerns about energy consumption and impacts on the electric grid rise. Laws and regulations are being implemented in various states, such as increased tax

[00:08:04] rates on data center equipment, restrictions on building locations, and moratoriums on tech incentives. The industry is under scrutiny for its high energy consumption and greenhouse emissions, prompting discussions with utilities and policy makers about addressing these challenges. However, stricter regulations may drive data center companies away, depriving communities

[00:08:25] of economic benefits. The Atlantic examined a Microsoft data center in Goodyear, Arizona, which is part of the company's ambitious plans to tackle climate change while supporting AI's explicit growth. However, the data center's massive water and energy consumption raises concerns in a region

[00:08:42] already facing extreme heat, drought, and water scarcity. The clash between AI's resource-intensive demands and the changing climate highlights the need for sustainable solutions and transparency in the tech industry's environmental impact. Why do we care?

[00:08:59] Besides my usual, I want you to think about these, tell you why I was drawn to each, I've heard anecdotally that it's hard to find good roles, and this deep dive gave some reasons why.

[00:09:10] I think a lot about the risks of AI damaging or destroying the ability to trust information, but take you the idea of trusting video. If testimony can be altered or faked and become undetectable, what damage does that do? There stands to be an opportunity in this area.

[00:09:27] Finally, most technologists don't generally ponder energy usage when considering their technology, which is an ever-increasing cost. Now, I've got a bias, personally I've been burned by green IT before, there might be something to it now. And thus, why we care. Today's episode is supported by Huntress.

[00:09:49] You want to focus on your clients and are always looking for ways to get more time. Use Huntress' fully managed cybersecurity platform to fight off cyber threats. Huntress is more than cybersecurity software for endpoints and identities. It's a 24 by 7 security operations center.

[00:10:07] It offers security awareness training, community engagement, and dedicated partner support with an average CSAT score of 99.3%. Technology can only get you so far. Human expertise is what's needed to truly elevate and protect small businesses. And you get that with Huntress.

[00:10:26] Secure your clients and help them thrive with the number one rated EDR for SMBs on G2. Visit huntress.com slash MSB radio to find out more. Thanks for listening. So which one should I go with? National San Architect Day or National No Pants Day? You guess.

[00:10:46] On the audio listeners especially. Have a question you want answered? We're taking listener questions. Send them, ideally as a voice memo or video to question at MSBradio.com. I answer listener questions live each week on our Wednesday live show. Next week, 3pm Eastern on YouTube and LinkedIn.

[00:11:02] And if you've got a comment or a thought, put it in the comments if you're on YouTube or reach out on LinkedIn if you're listening to the podcast. This weekend, that interview with Ramzi Sahoon of Evergreen Services Group.

[00:11:12] Get some insight into the way PE thinks about the market. And on Saturday for the podcast feed, you'll get our Wednesday show with my thoughts on the Kaseya announcement, SaaS alerts, SonicWall and some other deep dives. Have a great weekend. I'll talk to you on Monday.

[00:11:30] The Business of Tech is written and produced by me, Dave Sobel, under ethics guidelines. You can find it at businessof.tech. If you like the content, please make sure to hit that like button, follow or subscribe.

[00:11:42] It's free and easy and the best way to support the show and help us grow. You can also check out our Patreon where you can join the Business of Tech community at patreon.com slash MSB radio or buy our Why Do We Care merch at businessof.tech.

[00:12:00] Finally, if you're interested in advertising on this show, visit MSB radio.com slash engage. Once again, thanks for listening to me. I will talk to you again on our next episode of the Business of Tech.