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With compliance and security concerns specific to the cannabis industry, artificial intelligence may be the key to improved cybersecurity strategies.

In the modern era, each industry seems to grow with the technology that supports it. Looking to the cannabis business of today, it’s amazing to see how sophisticated and modernized this once grassroots and obscure industry has become. To this end, the cannabis industry of 2019 is beginning to mirror more mainstream businesses, as well as share in the technological advancements that support them. Of the novel technologies being entertained in the cannabis space, artificial intelligence shows some promising potential on the cybersecurity front.   

In any U.S. state with a legal cannabis market, compliance and security are some of the most integral features of successful business operations. In fact, if one is even interested in pursuing a cannabis business license in a state like Colorado, they must have functional security and compliance measures already in place. This is important because many of these measures – such as seed-to-sale tracking – are entirely dependent on technology. Therefore, the same digital platforms that make cannabis businesses compliant can also make them vulnerable to the downfalls of said supporting tech. Of these challenges, cyberattacks have raised concerns across the industry, especially with leading seed-to-sale tracking companies like MJ Freeway falling victim to such attacks.

Current forms of cybersecurity technology are only as effective as the tasks that they are programmed to complete. While computers are quite effective for such mundane tasks as cataloguing data, they lack effective decision-making capabilities. This is where AI really stands apart from more established forms of security technology. Through a process known as “machine learning,” some feel that AI can be beneficial to cybersecurity programs because it can “learn” to detect anomalies in cyber activity as they arise. For those who have suffered from cyberattacks, it is precisely these anomalies, or previously unknown hacking avenues, that manage to breach security protocols. To help detect these anomalies, and in a process akin to human rationality, machine learning allows computers to grow more intelligent by way of experience. This adaptive learning allows computers to make real-time decisions independent of human programmers, potentially preventing cyberattacks on the spot.

If one is to understand how AI could be beneficial in protecting cannabis businesses from cyberattacks, it is vital to understand what is at stake. In the society of today, knowledge is power. Looking to the business world, vital information on such things as consumer behavior and purchasing patterns can be the difference between success and failure. Concerning the cannabis space, intellectual property related to cultivation technique, business operations, and product development grows increasingly valuable with the advancement of the industry. Similarly, cannabis dispensaries are a storehouse for vital information on their customers, including data that is critical in identity theft. This information includes customer names, addresses, emails, phone numbers, and financial records.

Of the cybersecurity breaches seen in the cannabis industry, the MJ Freeway hacks are the most publicized. As an ROI-driven cannabis seed-to-sale tracking software company, MJ Freeway has access to a business’ most vital information, including operations statistics and consumer behavior. In both January and June 2017, the company experienced cyberattacks where both personal customer information and source code were taken. As the state-mandated, seed-to-sale tracking software for both Pennsylvania and Washington State, MJ Freeway put both businesses and consumers at risk when they were breached. The question now is, “What sort of steps could MJ Freeway have taken to prevent such incidents?” As the literal “gatekeepers” of the bulk of industry business intelligence, seed-to-sale companies like MJ Freeway, BioTrackTHC, and METRC are charged with staying ahead of the curve in cybersecurity.

There are a few ways that new advancements in AI technology can be applied to cybersecurity measures in the cannabis space, with the end goal of protecting both businesses and consumers. A Forbes article, titled “How Will Artificial Intelligence and Machine Learning Impact Cyber Security?” recently stated, “Organizations are already beginning to use AI to bolster cybersecurity and offer more protections against sophisticated hackers. AI helps by automating complex processes for detecting attacks and reacting to breaches.” Yet, this notion does not represent a wholesale departure from human intervention in cybersecurity scenarios. The article continues: “When you combine very smart security personnel with adaptive technology that continues to change and become smarter over time, this provides a competitive edge to defenders that have primarily been absent from most cybersecurity technologies to date.”

Therefore, the cybersecurity force of the future represents a blending of human ingenuity with machine learning, where both elements are on alert for anomalies that could lead to information breaches. Looking back to cannabis, whether these “defenders” will come in the way of large database companies like MJ Freeway, or smaller individual producers like dispensaries or grow operations, remains to be seen.

In a somewhat ironic twist of fate, it is by becoming more adaptable like human beings that AI is becoming relevant in cybersecurity. This idea stands in stark contradiction to the mechanistic analyzation that is accepted in cybersecurity measures today. Whether in the cannabis industry or beyond, cybersecurity experts, according to DOPE Magazine, recommend that businesses always remain on the cutting-edge of technology. For many, this dedication to innovation is the only surefire way to stay ahead of malicious interests and protect vital information. As the cannabis business continues to grow and mature, AI will inevitably become a part of cybersecurity protocol, just as it has in other industries. Looking at both compliance and security, perhaps AI is the missing piece that streamlines operations in an adaptive and practical fashion.

In late August, Johnson & Johnson (NYSE:JNJ) was hit with a hefty $572 million fine for its role in the opioid crisis in Oklahoma, which was still not as bad as it could have been. In what could prove to be a monumental case in the U.S., it could just be the beginning of a much larger fallout. As many as 130 people die daily as a result of overdosing on opioids.

Johnson & Johnson and other pharmaceuticals have reason to be worried, as Oklahoma's opioid problem is not nearly as severe as it is in other states. According to 2017 data from the Centers for Disease Control and Prevention, the state had a death rate relating to drug overdoses of 20.1 per 100,000 people, with 775 total deaths occurring that year. In contrast, West Virginia had the highest rate of death at 57.8 per 100,000 people while Pennsylvania, Florida, and Ohio each had more than 5,000 people lose their lives as a result of overdosing. While the fine in Oklahoma may not be that big of a burden for Johnson & Johnson, the amount could be a drop in the bucket compared to what a potential payout may be in other states should they be successful in pursuing similar types of litigation. The company said it plans to appeal the ruling. 

The cannabis impact

The importance of the issue is evident from a cost standpoint, especially if the ruling against Johnson & Johnson holds up. Companies are likely to start taking opioids more seriously and look into alternative treatment options. One industry where healthcare companies may start to focus on is cannabis. Colorado, New York, and Illinois already allow doctors to recommend cannabis in place of opioids. 

The challenge when it comes to cannabis is that while there's a lot of anecdotal evidence claiming marijuana use helps users deal with pain, there just isn't hard data to support that. To make matters worse, it's also hard to get research done on cannabis to be able to even prove or disprove its effectiveness since it remains a Schedule I drug, illegal on a federal level. These limitations make it difficult to prove whether cannabis can help the situation or not. 

In addition, there has been research to suggest that cannabis is not a blanket solution to the opioid crisis. However, the research is by no means comprehensive and there's a clear need for more research before any definitive links can be drawn. Even one of the more critical studies  acknowledged that "a great majority of adults who used cannabis did not go on to initiate or increase their nonmedical opioid use." Meanwhile, veterans are urging the government to help them access medical marijuana, which has been more effective for some in treating post-traumatic stress disorder than opioids. 

Unfortunately, there's no one right answer to the question of whether cannabis can help the opioid crisis. What is evident, though, is that more research is needed to help understand in which circumstances it may be helpful and in which it may not be. To say conclusively that it does or doesn't help would be premature given the conflicting data.

We're still early in the process

To date, only GW Pharmaceuticals (NASDAQ:GWPH) has successfully launched a cannabis-based drug in the U.S., called Epidiolex. And it could be a long time before we see any others get approved as well given the legal hurdles involved. However, the Johnson & Johnson ruling could be the catalyst that at least gets pharmaceutical companies looking into potential alternatives, ones that include cannabis. 

Why this matters for investors

From an investment standpoint, there's obviously a lot of potential growth that could be at hand for a company with a significant position in the medical marijuana segment like Aurora Cannabis. If cannabis is shown to be an effective treatment option in place of opioids, we could see much more demand for Aurora's products and for the industry as a whole. It could also lead to a big pharmaceutical company finally dipping its toes into the medical marijuana market. It's very early on, but last week's ruling could help lead to some medical professionals taking another look at cannabis, and that could be huge for the industry.

Hemp cultivation in Europe is well established with a tradition dating back hundreds of years. Currently, it is estimated that Europe cultivates up to 25% of the world's hemp. France alone accounted for 40% of the European production, with at least 20 other countries contributing to the European Union's total.

European hemp cultivation has been on a major upswing for the last several years, as producers and consumers become more excited about new usage opportunities.

In the last several years, along with the tremendous increase in overall cultivation, the European market has experienced a great surge in its use of seeds and flowers, along with associated applications of those hemp components. According to the European Industrial Hemp Association (EIHA), the EU produced 11,500 metric tons of hemp seeds in 2015 (the last year for which data is available), yet it imported another 10,000 metric tons, primarily from China.

While most hemp seeds a decade ago were used for animal feed, especially for birds and fish, EIHA now estimates that 60% of the crop is used for human food, with only 40% of it for animal feed. That shift is expected to continue as Europeans become more aware of the benefits of hemp and its omega fatty acid profile. The EU has also seen a major increase in the last four years in the harvesting of hemp flowers and leaves for medical and food applications (primarily around CBD).

CBD sales are flourishing in some European countries despite confusion around European Food Safety Authority classification of CBD as a "novel food". Some countries such as the U.K. and Italy have a hands-off approach and are not enforcing these guidelines, whilst other countries (e.g., France, Austria, and Spain), are clamping down on CBD sales.

CBD products are enjoying wide distribution in Europe – from tobacco shops and vape stores, to traditional supplement stores like U.K.-based Holland and Barrett. Such products are also in convenience stores, supermarkets, and online retailers, including Amazon.

Unfortunately, country-by-country regulations can also hamper uniformity about which parts of the hemp plant may be used. In Germany and Romania, flowers and leaves can be harvested, but in the U.K., France, and the Netherlands, only the fibers and seeds can be used.

Europe's hemp market, like most global markets, is working through some growing pains, but while doing so it is also quickly building a strong, diverse hemp industry for the future.

Several medical marijuana products are being taken off the shelves in Michigan after the state determined that they contain hazardous levels of pesticides. 

The safety compliance facility overseeing the safety of the products, Iron Laboratories, had its license suspended by the Michigan Marijuana Regulatory Agency earlier this month after it was revealed that it had conducted faulty testing for pesticide and mold in its cannabis products—the first time the state issued a suspension to a marijuana business.

At the time of the suspension, the agency said that despite Iron Laboratories’ “inaccurate results and/or unreliable testing and reporting practices,” it had “not been made aware of any adverse product reactions in conjunction with product tested by Iron Laboratories,” and was thus not issuing any recalls. 

But that changed on Friday, when the Marijuana Regulatory Agency announced that it is recalling four medical marijuana products as a result of the investigation into Iron Laboratories. The agency provided the production batch numbers for each product, as well as the pharmacies and dispensaries across the state where they have been sold. The recalled products have been sold in a little more than a dozen cities throughout Michigan. 

In its safety bulletin on Friday, the agency said that it “has not been made aware of any adverse product reactions in conjunction with these products,” but that symptoms or medical issues resulting from the recalled products may include “coughing, wheezing, decreased pulmonary function, nausea, vomiting, abnormal heart rhythm, and damage to blood vessels.” The agency has advised patients or caregivers who are in possession of these affected products to destroy them or return them to facility from which they were purchased. 

After being dealt the suspension earlier this month, Iron Laboratories said it was “very surprised” by the disciplinary action. “”When requested by [Marijuana Regulatory Agency] to address inquiries, Iron Laboratories acts swiftly to comply with documented explanations and corrective actions when needed,” the company’s president, Rob Teitel, said in a statement. 

“We regularly offer advice regarding testing requirements when asked by MRA officials.”

Teitel added: “We will continue to cooperate, knowing that upon conclusion of the investigation, the State of Michigan and MRA will determine we are well qualified to carry out the important mandate of safe testing.”

For Michigan, it represents the largest medical marijuana recall to date. Voters in the state overwhelmingly approved a measure legalizing medical cannabis back in 2008. Last year, those voters went a step further, making Michigan the 10th state to legalize recreational marijuana.

Quebec Superior Court Judge Manon Lavoie overturned the province’s ban on homegrown cannabis on Tuesday, meaning that Quebecers are now free to cultivate cannabis at home without facing legal repercussions.

In June 2018, the provincial government passed Quebec’s cannabis law, which included provisions banning the cultivation of cannabis at home.

However, Lavoie ruled that these provisions are unconstitutional as they infringe upon the jurisdiction of the federal government, which has sole responsibility for legislating on criminal matters.

As a result, homegrown cannabis in Quebec is now regulated by Canadian law, which allows citizens to grow up to four cannabis plants.

“As a Quebec citizen, I subscribe to the idea that it’s better to control cannabis by allowing it to be grown at home,” said Julien Fortier, the lawyer who led the challenge.

Fortier took on the case after being approached by Janick Murray Hall, who wanted to bring the action to court on behalf of all those in Quebec who have been prosecuted for being in possession of cannabis plants.

According to the lawyer, Lavoie’s ruling fits with why the government opted to legalize cannabis in the first place.

“The entire idea behind the legalization of cannabis was that the government wanted to remove the production of this plant from organized crime,” Fortier said. “If you allow people to cultivate this plant themselves, that purpose would be achieved.”

Still, Fortier is urging Quebec homegrowers to avoid celebrating prematurely, as the provincial government has 30 days to file a petition to the Court of Appeal. In fact, he warns there is a “very strong chance” the government will seek an appeal.

“I don’t think the Quebec government will do nothing and let it slide,” he said. “Regardless, we’re looking forward to the fight.”

Nevada’s cannabis industry has broken the $100 million dollar mark in taxes and fees for the first time. Dispensaries, cultivators, laboratories and producers have paid more than $109 million in taxes and fees in fiscal year 2019.

$99.18 million was paid in taxes compared to $74.7 million last year. How much of that went to education is not yet available from the state. However, changes to the law this year under the leadership of Governor Sisolak mandate that 100 percent of taxes will go to education in future years. For the next two years, the state is projecting more than $100 million per year in tax collections. Cannabis sales were also up from $529 million in fiscal year 2018 to approximately $639 million in fiscal year 2019, an increase of $110 million.

“These sales and tax figures are a milestone that should be celebrated by the people of Nevada.” said Riana Durrett of the Dispensary Association. “It shows that the public and visitors to Las Vegas from around the nation are becoming more comfortable purchasing cannabis and the industry is improving its ability to serve the public. The winners are the people of Nevada, gaining highly-skilled jobs, industry diversification and education.”

“While these sales figures are strong, we should not take them for granted,” Durrett said. “The number one goal is to ensure public safety and second is the stability of the industry. Millions more in taxes and fees are paid at nearly every level of government including county and local. Significant changes in the market or regulatory framework could impact tax collection, especially given competition from the illegal market. The illegal market continues to deprive the state of funds that could be going to education.”

“Nevada continues to be a model for the industry and regulators nation-wide,” Durrett said. “We must continue to carefully analyze the impacts of regulation and taxes is ensure continued success.”

Although microdosing may go against the grain of the old time stoner philosophy, doctors say that finding the “minimum effective dose” is the key to medical treatment.

There are those cannabis connoisseurs who enjoy getting super stoned at the end of a long day at the office, while others are now embracing an emerging trend called microdosing, a procedure that allows the user to moderate their mind by taking small doses throughout the day.

The concept of microdosing is simple: instead of consuming enough THC to join the land of catatonia, the user leans on somewhere between 3 to 10 mg to feel some effect without entering into a realm of laughing fits, paranoia and ravenous hunger. It is increasingly popular practice that Rolling Stone calls “Marijuana 2.0,” an idea that less is actually more when it comes to using cannabis for its therapeutic and creativity-inducing benefits.

However, there are some challenges involved. What is considered a low dose for some may not cut it for others. It is similar to how it would be if measuring the effectiveness of Ibuprofen on a large group of people. Some of them would find relief with 200 mg, while it might take others near pharmaceutical levels to cut through the pain. So, the core of this dosing principle is really just about the individual finding the perfect “micro-buzz” that allows them to feel comfortable and productive.

Dr. Duston Sulak, who has been working with medical marijuana patients in Maine for the past eight years, told Rolling Stone that he has developed a system to help people find their optimal microdose.

“Abstain from cannabis for two days. On day three, consume one milligram of THC and one milligram of CBD, preferably in a tincture or oil where they can be measured precisely,” he said. “Before consuming, ask yourself three questions, and answer on a scale of one to 10: How easy is it to breathe, how comfortable and calm does your body feel and how easy is it for you to smile authentically, to feel content and grateful?”

Feel nothing? Increase your dose by one milligram, the doctor says.

“You repeat this process over the next few days, increasing the dose by small increments,” he explained. “When you reach a point where you feel a difference after consuming, you’ve found your minimal effective dose.”

No matter how high of a tolerance a person has, the doctor says 48 hours of abstinence is all that is needed to hit the rest button.

Although microdosing may go against the grain of the old time stoner philosophy, medical experts say that finding the “minimum effective dose” is the key when treating a patient with any medication. After all, it is not advised to take other medications at intoxicating levels, so why should marijuana be treated any differently?

The marijuana legalization movement has a lot of friends in high places these days that were not always there for the cause.

It goes without saying that, despite just how popular cannabis has become over the past few years, it was not always the opinion of those who write our laws in the United States that we should embrace the herb similar to alcohol and tobacco and allow it to become a part of legitimate society.

It was the Democrats that initially took the reins on this issue, fighting for it on Capitol Hill without any success. But them something bizarre started to happen.

Republicans, a group staunchly opposed to legal weed since the dawn of time, started to come out of the pot closet. There are now more Republicans in Congress that support the cannabis movement in one way or another than ever before. The following is a list of those fighting to give the cannabis industry more rights to operate without antiquated federal controls.

Representative Steve Stivers: Republican Representative from Ohio, where medical marijuana is now legal. He is a co-sponsor on a bill designed to give banks permission to do business with the cannabis industry. It is known as the SAFE Banking Act.

Senator Cory Gardner: Republican Senator from Colorado, where marijuana is legal for both medical and recreational use. He supports bringing an end to federal marijuana prohibition and is considered one of the primary voices for the movement on the Hill.

Representative Rodney Davis: Republican Representative from Illinois, where marijuana is legal for both medical and recreational use. In addition to his support for the SAFE Banking Act, he has also cast several votes in favor of giving veterans access to medical marijuana.

Representative Duncan Hunter: Republican Representative from California, where marijuana is entirely legal. He is a co-sponsor on the SAFE Banking Act.

Senator Mitch McConnell: Republican Senator from Kentucky. He hates marijuana (at least for now) but played a huge role in the legalization of industrial hemp production last year, giving the agricultural community, as well as the CBD sector a boost.

Representative Dan Newhouse: Republican Representative from Washington, where marijuana is legal for recreational use. He is a co-sponsor on the SAFE Banking Act and has voted in favor of medical marijuana access for veterans.

Representative David P. Joyce: This Republican Representative from Ohio is the co-chair of the Congressional Cannabis Caucus, a group pushing for marijuana reform at the national level. He is a supporter of several marijuana legalization efforts, including the SAFE Banking Act and the Marijuana Data Collection Act.

Representative Don Young: Republican Representative from Alaska, where marijuana is legal for recreational use. He recently joined forces with Democrat Tulsi Gabbard to introduce the Ending Federal Marijuana Prohibition Act of 2019. He is a state’s rights supporter and a co-sponsor on the SAFE Banking Act.

Representative Matt Gaetz: Republican Representative from Florida, where medical marijuana is legal. He recently introduced the Medical Cannabis Research Act of 2019 because, he says, “we cannot reform cannabis law without researching its safety, its efficacy, and its medical uses.” He is also a co-sponsor on the SAFE Banking Act.

Senator Kevin Cramer: Republican Senator from North Dakota, where medical marijuana was made legal by way of ballot initiative. He is part of a group working to give marijuana-related businesses access to comprehensive and affordable insurance coverage.

Representative Denver Riggleman: Republican Representative from Virginia, which has a medical marijuana program. He is a supporter of all things medical marijuana and eliminating prosecutions for petty pot offenses. He is also a co-sponsor of both the STATES Act and the SAFE Banking Act.

Senator Lisa Murkowski: Republican Senator from Alaska. She believes states should be permitted to make their own rules when it comes to marijuana, and that financial services should be made available to the cannabis trade. She is presently a co-sponsor of the Secure And Fair Enforcement Banking Act of 2019.

Representative Mark Amodei: Republican Representative from Nevada, where marijuana is legal for adults 21 and over. He has called out the federal government for accepting tax money from the cannabis industry, all while refusing to legalize. He supports the SAFE Banking Act.

Representative Troy Balderson: Republican Representative from Ohio. He is a supporter of medical marijuana. Balderson was part of the “yes” crew that legalized it for therapeutic purposes in his state in 2016. He is presently a co-sponsor for the SAFE Banking Act.

Representative Tom McClintock: Republican Representative from California. He is all about keeping the federal government out of state marijuana business. And while he admits that he’s not a big fan of the substance, he doesn’t believe prohibition is working. He has supported medical marijuana legislation and is presently a co-sponsor on the SAFE Banking Act.

Representative Chris Collins: Republican Representative from New York, where medical marijuana is legal. Co-sponsor of the SAFE Banking Act.

Senator Rand Paul: Republican Senator from Kentucky. He is a huge supporter of medical marijuana. He has sponsored cannabis legislation from the CARERS Act to the STATES Act. He is also favor of eliminating policies that force pot offenders to be sent to prison.

Representative Gregory Steube: Republican Representative from Florida. He is a supporter of giving veterans access to medical marijuana. In fact, he introduced the Veterans Cannabis Use for Safe Healing Act, earlier this year, aimed at preventing Veterans Affairs from denying patients the use of medicinal cannabis in states where it is legal. He is also a supporter of the SAFE Banking Act.

Representative Thomas Massie: Republican Representative from Kentucky, which has a restrictive low-THC medical marijuana program. He is a big supporter of eliminating policies that prevent medical marijuana cardholders from owning guns. Massie has championed legislation to remove the cannabis question on the ATF forms. He is also a co-sponsor on the SAFE Banking Act.

Senator Dan Sullivan: Republican Senator from Alaska. Not always a supporter of marijuana reform, but advocates for state’s rights and cannabis research. He is also a co-sponsor of the Secure And Fair Enforcement Banking Act of 2019.

Representative Guy Reschenthaler: Republican Representative from Pennsylvania, where medical marijuana is legal. In addition to being a co-sponsor on the SAFE Banking Act, he is also one for the Federal Clean Slate Act, which aims to seal the marijuana convictions of those involved in non-violent crimes.

Representative Fred Upton: Republican Representative from Michigan, where marijuana is completely legal.  He has received a B rating from NORML with respect to his position on cannabis. Upton is a supporter of the Congressional Cannabis Caucus and co-sponsor of both of the Ending Federal Marijuana Prohibition Act and the SAFE Banking Act.

Representative Jim Banks: Republican Representative from Indiana, which still locks people up for cannabis crimes. He is a co-sponsor on the SAFE Banking Act.

Representative Daniel Meuser: A newbie Republican Representative from Pennsylvania. He believes veterans should have medical marijuana access. He is also a supporter of the SAFE Banking Act.

Senator Andy Barr: Republican Senator from Kentucky. He is pushing for industrial hemp and CBD companies to be given access to financial services.

Representative Kelly Armstrong: Republican Representative from North Dakota. He is a supporter of ending federal marijuana prohibition. Armstrong is a co-sponsor of the SAFE Banking Act.

Representative Bob Gibbs: Republican Representative from Ohio. He has supported widespread medical marijuana legislation in the past, including the dusty CARERS Act. He is currently a co-sponsor of the SAFE Banking Act.

Representative James Comer: Republican Representative from Kentucky. He is a massive supporter of legalized hemp. He worked closely with Senate Majority Leader itch McConnell to include the legalization of industrial hemp on the 2018 Farm Bill. He also supports allowing cannabis operations to deposit cash, which is just one of the reasons he is presently a co-sponsor of the SAFE Baking Act.

Representative Tom Graves: Republican Representative from Georgia, where low-THC medical marijuana is legal. He is a co-sponsor of the SAFE Banking Act.

Representative Anthony Gonzalez: Newbie Republican Representative from Ohio. He has signed on in support of the SAFE Banking Act.