IBM: A Management Beacon Shines Brightly
May 17, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
To be frank, I don’t know if the write up called “IBM Sued Again for Alleged Discrimination. This Time Against White Males” is on the money. I don’t really care. The item is absolutely delicious. For context, older employees were given an opportunity to train their replacements and then find their future elsewhere. I think someone told me that was “age discrimination.” True or not, a couple of interesting Web sites disappeared. These reported on the hilarious personnel management policies in place at Big Blue during the sweep of those with silver hair. Hey, as a dinobaby, I know getting older adds a cost burden to outfits who really care about their employees. Plus, old employees are not “fast,” like those whip smart 24 year olds with fancy degrees and zero common sense. I understood the desire to dump expensive employees and find cheaper, more flexible workers. Anyone can learn PL/I, but only the young can embrace the intricacies of Squarespace.
Old geezers and dinobabies have no place on a team of young, bright, low wage athletes. Thanks, ChatGPT. Good enough in one try. Microsoft Copilot crashed. Well, MSFT is busy with security and AI or is it AI and security. I don’t know, do you?
The cited article reports:
The complaint claims that in the pursuit of greater racial and gender diversity within the Linux distro maker, Red Hat axed senior director Allan Kingsley Wood, an employee of eight years. According to the suit, that diversity, equity, and inclusion (DEI) initiative within Red Hat “necessitates prioritizing skin color and race as primary hiring factors,” and this, and not other factors, led to him being laid off. Basically, Wood claims he was unfairly let go for being a White man, rather for performance or the like, because Red Hat was focused on prioritizing in an unlawfully discriminatory fashion people of other races and genders to diversify its ranks.
The impact? The professional has an opportunity to explore the greenness on the side of the fence closer to the unemployment benefits claims office. The write up concludes this way:
It’s too early to tell how likely Wood is to succeed in his case. A 2020 lawsuit against Google on similar grounds didn’t even make it to court because the plaintiff withdrew. On the other hand, IBM has been settling age-discrimination claims left and right, so perhaps we’ll see that happen here. We’ve reached out to Red Hat and AFL for further comment on the impending court battle, and we’ll update if we hear back.
I will predict the future. The parties to this legal matter (assuming it is not settled among gentlemen) will not get back to the author of the news report. In my opinion, IBM remains a paragon of outstanding personnel management.
Stephen E Arnold, May 17, 2024
Allegations about Medical Misinformation Haunt US Tech Giants
May 17, 2024
Access to legal and safe abortions also known as the fight for reproductive rights are controversial issues in the United States and countries with large Christian populations. Opposition against abortions often spread false information about the procedure. They’re also known to spread misinformation about sex education, especially birth control. Mashable shares the unfortunate story that tech giants “Meta And Google Fuel Abortion Misinformation Across Africa, Asia, And Latin America, Report Finds.”
The Center for Countering Digital Hate (CCDH) and MSI Reproductive Choices (MSI) released a new report that found Meta and sometimes Google restricted abortion information and disseminated misinformation and abuse in Latin America, Asia, and Africa. Abortion providers are prevented placing ads globally on Google and Meta. Meta also earns revenue from anti-abortion ads bought in the US and targeted at the aforementioned areas.
MSI claims in the report that Meta removed or rejected its ads in Vietnam, Nigeria, Nepal, Mexica, Kenya, and Ghana because of “sensitive content.” Meta also has a blanket advertising restrictions on MSI’s teams in Vietnam and Nepal without explanation. Google blocked ads with the keyword “pregnancy options” in Ghana and MSI claimed they were banned from using that term in a Google Adwords campaign.
Google offered an explanation:
“Speaking to Mashable, Google representative Michael Aciman said, ‘This report does not include a single example of policy violating content on Google’s platform, nor any examples of inconsistent enforcement. Without evidence, it claims that some ads were blocked in Ghana for referencing ‘pregnancy options’. To be clear, these types of ads are not prohibited from running in Ghana – if the ads were restricted, it was likely due to our longstanding policies against targeting people based on sensitive health categories, which includes pregnancy.’”
Google and Meta have been vague and inconsistent about why they’re removing pregnancy option ads, while allowing pro-life groups the spread unchecked misinformation about abortion. Meta, Google, and other social media companies mine user information, but they do scant to protect civil liberties and human rights.
Organizations like MSI and CCDH are doing what they can to fight bad actors. It’s an uphill battle and it would be easier if social media companies helped.
Whitney Grace, May 17, 2024
Flawed AI Will Still Take Jobs
May 16, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
Shocker. Organizations are using smart software which is [a] operating in an way its creators cannot explain, [b] makes up information, and [c] appears to be dominated by a handful of “above the law” outfits. Does this characterization seem unfair? No, well, stop reading. If it seems anchored in reality, you may find my comments about jobs for GenX, GenY or GenWhy?, millennials, and Alphas (I think this is what marketers call wee lads and lasses) somewhat in line with the IMF’s view of AI.
The answer is, “Your daughter should be very, very intelligent and very, very good at an in-demand skill. If she is not, then it is doom scrolling for sure. Thanks, MSFT Copilot. Do your part for the good of mankind today.
“Artificial Intelligence Hitting Labour Forces Like a Tsunami – IMF Chief” screws up the metaphor. A tsunami builds, travels, dissipates. I am not sure what the headline writer thinks will dissipate in AI land. Jobs for sure. But AI seems to have some sticking power.
What does the IMF say? Here’s a bit of insight:
Artificial intelligence is likely to impact 60% of jobs in advanced economies and 40% of jobs around the world in the next two years…
So what? The IMF Big Dog adds:
“It could bring tremendous increase in productivity if we manage it well, but it can also lead to more misinformation and, of course, more inequality in our society.”
Could. I think it will but for those who know their way around AI and are in the tippy top of smart people. ATM users, TikTok consumers, and those who think school is stupid may not emerge as winners.
I find it interesting to consider what a two-tier society in the US and Western Europe will manifest. What will the people who do not have jobs do? Volunteer to work at the local animal shelter, pick up trash, or just kick back. Yeah, that’s fun.
What if one looks back over the last 50 years? When I grew up, my father had a job. My mother worked at home. I went to school. The text books were passed along year to year. The teachers grouped students by ability and segregated some students into an “advanced” track. My free time was spent outside “playing” or inside reading. When I was 15, I worked as a car hop. No mobile phones. No computer. Just radio, a record player, and a crappy black-and-white television which displayed fuzzy programs. The neighbors knew me and the other “kids.” From my eighth grade class, everyone went to college after high school. In my high school class of 1962, everyone was thinking about an advanced degree. Social was something a church sponsored. Its main feature was ice cream. After getting an advanced degree in 1965 I believe, I got a job because someone heard me give a talk about indexing Latin sermons and said, “We need you.” Easy.
A half century later, what is the landscape. AI is eliminating jobs. Many of these will be either intermediating jobs like doing email spam for a PR firm’s client or doing legal research. In the future, knowledge work will move up the Great Chain of Being. Most won’t be able to do the climbing to make it up to a rung with decent pay, some reasonable challenges, and a bit of power.
Let’s go back to the somewhat off-the-mark tsunami metaphor. AI is going to become more reliable. The improvements will continue. Think about what an IBM PC looked like in the 1980s. Now think about the MacBook Air you or your colleague has. They are similar but not equivalent. What happens when AI systems and methods keep improving? That’s tough to predict. What’s obvious is that the improvements and innovations in smart software are not a tsunami.
I liken it more like the continuous pressure in a petroleum cracking facility. Work is placed in contact with smart software, and stuff vaporizes. The first component to be consumed are human jobs. Next, the smart software will transform “work” itself. Most work is busy work; smart software wants “real” work. As long as the electricity stays on, the impact of AI will be on-going. AI will transform. A tsunami crashes, makes a mess, and then is entropified. AI is a different and much hardier development.
The IMF is on the right track; it is just not making clear how much change is now underway.
Stephen E Arnold, May 16, 2024
AI Delivers The Best of Both Worlds: Deception and Inaccuracy
May 16, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
Wizards from one of Jeffrey Epstein’s probes made headlines about AI deception. Well, if there is one institution familiar with deception, I would submit that the Massachusetts Institute of Technology might be considered for the ranking, maybe in the top five.
The write up is “AI Deception: A Survey of Examples, Risks, and Potential Solutions.” If you want summaries of the write up, you will find them in The Guardian (we beg for dollars British newspaper) and Science Alert. Before I offer my personal observations, I will summarize the “findings” briefly. Smart software can output responses designed to deceive users and other machine processes.
Two researchers at a big name university make an impassioned appeal for a grant. These young, earnest, and passionate wizards know their team can develop a lie detector for an artificial intelligence large language model. The two wizards have confidence in their ability, of course. Thanks, MSFT Copilot. Good enough, like some enterprise software’s security architecture.
If you follow the “next big thing” hoo hah, you know that the garden variety of smart software incorporates technology from outfits like Google. I have described Google as a “slippery fish” because it generates explanations which often don’t make sense to me. Using the large language model generative text systems can yield some surprises. These range from images which seem out of step with historical fact to legal citations that land a lazy lawyer (yes! alliteration) in a load of lard.
The MIT researcher has verified that smart software may emulate the outstanding ethical qualities of an engineer or computer scientist. Logic is everything. Ethics are not anything.
The write up says:
Deception has emerged in a wide variety of AI systems trained to complete a specific task. Deception is especially likely to emerge when an AI system is trained to win games that have a social element …
The domain of the investigation was games. I want to step back and ask, “If LLMs are not understood by their developers, how do we know if deception is hard wired into the systems or that the systems learn deception from their developers with a dusting of examples from the training data?”
The answer to the question is, “At this time, no one knows how these large-scale systems work. Even the “small” LLMs can prove baffling. We input our own data into Mistral and managed to obtain gibberish. Another go produced a system crash that required a hard reboot of the Mac we were using for the test.
The reality appears to be that probability-based systems do not follow the same rules as a human. With more and more humans struggling with old-school skills like readin’, writin’ and ‘rithmatic — most people won’t notice. For the top 10 percenters, the mistakes are amusing… sometimes.
The write up concludes:
Training models to be more truthful could also create risk. One way a model could become more truthful is by developing more accurate internal representations of the world. This also makes the model a more effective agent, by increasing its ability to successfully implement plans. For example, creating a more truthful model could actually increase its ability to engage in strategic deception by giving it more accurate insights into its opponents’ beliefs and desires. Granted, a maximally truthful system would not deceive, but optimizing for truthfulness could nonetheless increase the capacity for strategic deception. For this reason, it would be valuable to develop techniques for making models more honest (in the sense of causing their outputs to match their internal representations), separately from just making them more truthful. Here, as we discussed earlier, more research is needed in developing reliable techniques for understanding the internal representations of models. In addition, it would be useful to develop tools to control the model’s internal representations, and to control the model’s ability to produce outputs that deviate from its internal representations. As discussed in Zou et al., representation control is one promising strategy. They develop a lie detector and can control whether or not an AI lies. If representation control methods become highly reliable, then this would present a way of robustly combating AI deception.
My hunch is that MIT will be in the hunt for US government grants to develop a lie detector for AI models. It is also possible that Harvard’s medical school will begin work to determine where ethical behavior resides in the human brain so that can be replicated in one of the megawatt munching data centers some big tech outfits want to deploy.
Four observations:
- AI can generate what appears to be “accurate” information, but that information may be weaponized by a little-understood mechanism
- “Soft” human information like ethical behavior may be difficult to implement in the short term, if ever
- A lie detector for AI will require AI; therefore, how will an opaque and not understood system be designated okay to use? It cannot at this time
- Duplicity may be inherent in the educational institutions. Therefore, those affiliated with the institution may be duplicitous and produce duplicitous content. This assertion raises the question, “Whom can one trust in the AI development chain?
Net net: AI is hot because is a candidate for 2024’s next big thing. The “big thing” may be the economic consequences of its being a fairly small and premature thing. Incubator time?
Stephen E Arnold, May 16, 2024
Generative AI: Minor Value and Major Harms
May 16, 2024
Flawed though it is, generative AI has its uses. In fact, according to software engineer and Citation Needed author Molly White, AI tools for programming and writing are about as helpful as an intern. Unlike the average intern, however, AI supplies help with a side of serious ethical and environmental concerns. White discusses the tradeoffs in her post, “AI Isn’t Useless. But Is It Worth It?”
At first White was hesitant to dip her toes in the problematic AI waters. However, she also did not want to dismiss their value out of hand. She writes:
“But as the hype around AI has grown, and with it my desire to understand the space in more depth, I wanted to really understand what these tools can do, to develop as strong an understanding as possible of their potential capabilities as well as their limitations and tradeoffs, to ensure my opinions are well-formed. I, like many others who have experimented with or adopted these products, have found that these tools actually can be pretty useful for some tasks. Though AI companies are prone to making overblown promises that the tools will shortly be able to replace your content writing team or generate feature-length films or develop a video game from scratch, the reality is far more mundane: they are handy in the same way that it might occasionally be useful to delegate some tasks to an inexperienced and sometimes sloppy intern. Still, I do think acknowledging the usefulness is important, while also holding companies to account for their false or impossible promises, abusive labor practices, and myriad other issues. When critics dismiss AI outright, I think in many cases this weakens the criticism, as readers who have used and benefited from AI tools think ‘wait, that’s not been my experience at all’.”
That is why White put in the time and effort to run several AI tools through their paces. She describes the results in the article, so navigate there for those details. Some features she found useful. Others required so much review and correction they were more trouble than they were worth. Overall, though, she finds the claims of AI bros to be overblown and the consequences to far outweigh the benefits. So maybe hand that next mundane task to the nearest intern who, though a flawed human, comes with far less baggage than ChatGPT and friends.
Cynthia Murrell, May 16, 2024
Ho Hum: The Search Sky Is Falling
May 15, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
“Google’s Broken Link to the Web” is interesting for two reasons: [a] The sky is falling — again and [b] search has been broken for a long time and suddenly I should worry.
The write up states:
When it comes to the company’s core search engine, however, the image of progress looks far muddier. Like its much-smaller rivals, Google’s idea for the future of search is to deliver ever more answers within its walled garden, collapsing projects that would once have required a host of visits to individual web pages into a single answer delivered within Google itself.
Nope. The walled garden has been in the game plan for a long, long time. People who lusted for Google mouse pads were not sufficiently clued in to notice. Google wants to be the digital Hotel California. Smarter software is just one more component available to the system which controls information flows globally. How many people in Denmark rely on Google search whether it is good, bad, or indifferent? The answer is, “99 percent.” What about people who let Google Gmail pass along their messages? How about 67 percent in the US. YouTube is video in many countries even with the rise of TikTok, the Google is hanging in there. Maps? Ditto. Calendars? Ditto. Each of these ubiquitous services are “search.” They have been for years. Any click can be monetized one way or another.
Who will pay attention to this message? Regulators? Users of search on an iPhone? How about commuters and Waze? Thanks, MSFT Copilot. Good enough. Working on those security issues today?
Now the sky is falling? Give me a break. The write up adds:
where the company once limited itself to gathering low-hanging fruit along the lines of “what time is the super bowl,” on Tuesday executives showcased generative AI tools that will someday plan an entire anniversary dinner, or cross-country-move, or trip abroad. A quarter-century into its existence, a company that once proudly served as an entry point to a web that it nourished with traffic and advertising revenue has begun to abstract that all away into an input for its large language models. This new approach is captured elegantly in a slogan that appeared several times during Tuesday’s keynote: let Google do the Googling for you.
Of course, if Google does it, those “search” abstractions can be monetized.
How about this statement?
But to everyone who depended even a little bit on web search to have their business discovered, or their blog post read, or their journalism funded, the arrival of AI search bodes ill for the future. Google will now do the Googling for you, and everyone who benefited from humans doing the Googling will very soon need to come up with a Plan B.
Okay, what’s the plan B? Kagi? Yandex? Something magical from one of the AI start ups?
People have been trying to out search Google for a quarter century. And what has been the result? Google’s technology has been baked into the findability fruit cakes.
If one wants to be found, buy Google advertising. The alternative is what exactly? Crazy SEO baloney? Hire a 15 year old and pray that person can become an influencer? Put ads on Tubi?
The sky is not falling. The clouds rolled in and obfuscated people’s ability to see how weaponized information has seized control of multiple channels of information. I don’t see a change in weather any time soon. If one wants to run around saying the sky is falling, be careful. One might run into a wall or trip over a fire plug.
Stephen E Arnold, May 15, 2024
The Future for Flops with Humans: Flop with Fakes
May 15, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
As a dinobaby, I find the shift from humans to fake humans fascinating. Jeff Epstein’s favorite university published “Deepfakes of Your Dead Loved Ones Are a Booming Chinese Business.” My first thought is that MIT’s leadership will commission a digital Jeffrey. Imagine. He could introduce MIT fund raisers to his “friends.” He could offer testimonials about the university. He could invite — virtually, of course — certain select individuals to a virtual “island.”
The bar located near the technical university is a hot bed of virtual dating, flirting, and drinking. One savvy service person is disgusted by the antics of the virtual customers. The bartender is wide-eyed in amazement. He is a math major with an engineering minor. He sees what’s going on. Thanks, MSFT Copilot. Working hard on security, I bet.
Failing that, MIT might turn its attention to Whitney Wolfe Herd, the founder of Bumble. Although a graduate of the vastly, academically inferior Southern Methodist University in the non-Massachusetts locale of Texas (!), she has a more here-and-now vision. The idea is probably going to get traction among some of the MIT-type brainiacs. A machine-generated “self” — suitably enhanced to remove pocket protectors, plaid jammy bottoms, and observatory grade bifocals — will date a suitable companion’s digital self. Imagine the possibilities.
The write up “AI Personas Are the Future of Dating, Bumble Founder Says. Many Aren’t Buying.” The write up reports:
Herd proposed a scenario in which singles could use AI dating concierges as stand-ins for themselves when reaching out to prospective partners online. “There is a world where your dating concierge could go and date for you with other dating concierge … and then you don’t have to talk to 600 people,” she said during the summit.
Wow. More time to put a pony on the roof of an MIT building.
The write up did inject a potential downside. A downside? Who is NBC News kidding?
There’s some healthy skepticism over whether AI is the answer. A clip of Herd at the Bloomberg Summit gained over 10 million views on X, where people expressed uneasiness with the idea of an AI-based dating scene. Some compared it to episodes of "Black Mirror," a Netflix series that explores dystopian uses of technology. Others felt like the use of AI in dating would exacerbate the isolation and loneliness that people have been feeling in recent years.
Are those working in the techno-feudal empires or studying in the prep schools known to churn out the best, the brightest, the most 10X-ceptional knowledge workers weak in social skills? Come on. Having a big brain (particularly for mathy type of logic) is “obviously” the equipment needed to deal with lesser folk. Isolated? No. Think about gamers. Such camaraderie. Think about people like the head of Bumble. Lectures, Discord sessions, and access to data about those interested in loving and living virtually. Loneliness? Sorry. Not an operative word. Halt.
“AI Personas Are the Future…” reports:
"We will not be a dating app in a few years," she [the Bumble spokesperson] said. "Dating will be a component, but we will be a true human connection platform. This is where you will meet anyone you want to meet — a hiking buddy, a mahjong buddy, whatever you’re looking for."
What happens when a virtually Jeff Epstein goes to the bar and spots a first-year who looks quite youthful. Virtual fireworks?
Stephen E Arnold, May 15, 2024
AI and the Workplace: Change Will Happen, Just Not the Way Some Think
May 15, 2024
This essay is the work of a dinobaby. Unlike some folks, no smart software improved my native ineptness.
I read “AI and the Workplace.” The essay contains observations related to smart software in the workplace. The idea is that employees who are savvy will experiment and try to use the technology within today’s work framework. I think that will happen just as the essay suggests. However, I think there is a larger, more significant impact that is easy to miss. Looking at today’s workplace is missing a more significant impact. Employees either [a] want to keep their job, [b] gain new skills and get a better job, or [c] quit to vegetate or become an entrepreneur. I understand.
The data in the report make clear that some employees are what I call change flexible; that is, these motivated individuals differentiate from others at work by learning and experimenting. Note that more than half the people in the “we don’t use AI” categories want to use AI.
These data come from the cited article and an outfit called Asana.
The other data in the report. Some employees get a productivity boost; others just chug along, occasionally getting some benefit from AI. The future, therefore, requires learning, double checking outputs, and accepting that it is early days for smart software. This makes sense; however, it misses where the big change will come.
In my view, the major shift will appear in companies founded now that AI is more widely available. These organizations will be crafted to make optimal use of smart software from the day the new idea takes shape. A new news organization might look like Grok News (the Elon Musk project) or the much reviled AdVon. But even these outfits are anchored in the past. Grok News just substitutes smart software (which hopefully will not kill its users) for old work processes and outputs. AdVon was a “rip and replace” tool for Sports Illustrated. That did not go particularly well in my opinion.
The big job impact will be on new organizational set ups with AI baked in. The types of people working at these organizations will not be from the lower 98 percent of the work force pool. I think the majority of employees who once expected to work in information processing or knowledge work will be like a 58 year old brand manager at a vape company. Job offers will not be easy to get and new companies might opt for smart software and search engine optimization marketing. How many workers will that require? Maybe zero. Someone on Fiverr.com will do the job for a couple of hundred dollars a month.
In my view, new companies won’t need workers who are not in the top tier of some high value expertise. Who needs a consulting team when one bright person with knowledge of orchestrating smart software is able to do the work of a marketing department, a product design unit, and a strategic planning unit? In fact, there may not be any “employees” in the sense of workers at a warehouse or a consulting firm like Deloitte.
Several observations are warranted:
- Predicting downstream impacts of a technology unfamiliar to a great many people is tricky and sometimes impossible. Who knew social media would spawn a renaissance in getting tattooed?
- Visualizing how an AI-centric start up is assembled is a challenge? I submit it won’t look like an insurance company today. What’s a Tesla repair station look like? The answer, “Not much.”
- Figuring out how to be one of the elite who gets a job means being perceived as “smart.” Unlike Alina Habba, I know that I cannot fake “smart.” How many people will work hard to maximize the return on their intelligence? The answer, in my experience, is, “Not too many, dinobaby.”
Looking at the future from within the framework of today’s datasphere distorts how one perceives impact. I don’t know what the future looks like, but it will have some quite different configurations than the companies today have. The future will arrive slowly and then it becomes the foundation of a further evolution. What’s the grandson of tomorrow’s AI firm look like? Beauty will be in the eye of the beholder.
Net net: Where will the never-to-be-employed find something meaningful to do?
Stephen E Arnold, May 15, 2024
Encryption Battles Continue
May 15, 2024
Privacy protections are great—unless you are law-enforcement attempting to trace a bad actor. India has tried to make it easier to enforce its laws by forcing messaging apps to track each message back to its source. That is challenging for a platform with encryption baked in, as Rest of World reports in, “WhatsApp Gives India an Ultimatum on Encryption.” Writer Russell Brandom tells us:
“IT rules passed by India in 2021 require services like WhatsApp to maintain ‘traceability’ for all messages, allowing authorities to follow forwarded messages to the ‘first originator’ of the text. In a Delhi High Court proceeding last Thursday, WhatsApp said it would be forced to leave the country if the court required traceability, as doing so would mean breaking end-to-end encryption. It’s a common stance for encrypted chat services generally, and WhatsApp has made this threat before — most notably in a protracted legal fight in Brazil that resulted in intermittent bans. But as the Indian government expands its powers over online speech, the threat of a full-scale ban is closer than it’s been in years.”
And that could be a problem for a lot of people. We also learn:
“WhatsApp is used by more than half a billion people in India — not just as a chat app, but as a doctor’s office, a campaigning tool, and the backbone of countless small businesses and service jobs. There’s no clear competitor to fill its shoes, so if the app is shut down in India, much of the digital infrastructure of the nation would simply disappear. Being forced out of the country would be bad for WhatsApp, but it would be disastrous for everyday Indians.”
Yes, that sounds bad. For the Electronic Frontier Foundation, it gets worse: The civil liberties organization insists the regulation would violate privacy and free expression for all users, not just suspected criminals.
To be fair, WhatsApp has done a few things to limit harmful content. It has placed limits on message forwarding and has boosted its spam and disinformation reporting systems. Still, there is only so much it can do when enforcement relies on user reports. To do more would require violating the platform’s hallmark: its end-to-end encryption. Even if WhatsApp wins this round, Brandom notes, the issue is likely to come up again when and if the Bharatiya Janata Party does well in the current elections.
Cynthia Murrell, May 15, 2024
Blue-Chip Consulting Firm Needs Lawyers and Luck
May 15, 2024
McKinsey’s blue chip consultants continue their fancy dancing to explain away an itsy bitsy problem: ruined lives and run-of-the-mill deaths from drug overdoses. The International Business Times reminds us, “McKinsey Under Criminal Investigation Over Alleged Role in Fueling Opioid Epidemic.” The investigation, begun before the pandemic, continues to advance at the glacial pace of justice. Journalist Kiran Tom Sajan writes:
“Global consulting firm McKinsey & Company is under a criminal investigation by the U.S. attorneys’ offices in Massachusetts and the Western District of Virginia over its alleged involvement in fueling the opioid epidemic. The Federal prosecutors, along with the Justice Department’s civil division in Washington, are specifically examining whether the consulting firm participated in a criminal conspiracy by providing advice to Purdue Pharma and other pharmaceutical companies on marketing tactics aimed at increasing sales of prescription painkillers. Purdue is the manufacturer of OxyContin, one of the painkillers that allegedly contributed to widespread addiction and fatal overdoses. Since 2021, McKinsey has reached settlements of approximately $1 billion to resolve investigations and legal actions into its collaboration with opioid manufacturers, primarily Purdue. The company allegedly advised Purdue to intensify its marketing of the drug amid the opioid epidemic, which has resulted in the deaths of hundreds of thousands of Americans. McKinsey has not admitted any wrongdoing.”
Of course not. We learn McKinsey raked in about $86 million working for Purdue, most of it since the drug firm’s 2007 guilty plea. Sajan notes the investigations do not stop with the question of fueling the epidemic: The Justice Department is also considering whether McKinsey obstructed justice when it fired two incautious partners—they were caught communicating about the destruction of related documents. It is also examining whether the firm engaged in healthcare fraud when it helped Purdue and other opioid sellers make fraudulent Medicare claims. Will McKinsey’s recent settlement with insurance companies lend fuel to that dumpster fire? Will Lady Luck kick her opioid addiction and embrace those McKinsey professionals? Maybe.
Cynthia Murrell, May 15, 2024
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