Criterion: McDonald’s data breach with the lot highlights the hazards of AIListed IT consultancy Atturra says the burgeoning data of AI is creating challenges for organisations, including the growing risk of data breaches.Tim Boreham3 min readJuly 11, 2025 - 9:00PMStockheadWhen it comes to AI, mishandling underlying data can have 'burger with the lot' implications. Pic via GettyStockheadDon't miss out on the headlines from Stockhead. Followed categories will be added to My News.Listed IT consultant Atturra says AI projects are failing because organisations have not mastered Data Handling 101A global data breach potentially exposing the details of  McDonald's applicants highlights the growing risksInvestors risk entering the AI ‘hype cycle’ and overpaying for popular exposuresThe CEO of IT consultancyAtturra (ASX:ATA), CEO Stephen Kowal argues for a back-to-basics approach of properly curating  – and understanding – the burgeoning data created by AI.“I guarantee that if you go to any company they won’t know where their data is stored,” Kowal says.“The biggest challenge for them is understanding their data and how secure it is and how to control it.”As if on cue, reports this week emerged of McDonald's suffering a global data breach that potentially saw the details of millions of applicants exposed.McDonald's blamed its third party IT supplier.The root of the problem was the company's McHire platform and its Olivia chatbot. Researchers accessed the "chat interaction records" of seven applicants using the password – and you guessed it – 123456.Speaking generally,  Kowal likens the AI rush to building a mansion on foundations of sand if data handling procedures are lacking in the first place.AI heightens data breach risksThe biggest listed IT consultancy and data integrator, Atturra assists organisations to get their data in order.In that sense, the company is the AI equivalent of the saucepan vendors on the goldfields.“We’ll sell the picks and shovels and can dig for the gold," Kowal says.He says as the volume of stored data increase, data breaches are inevitable.“But if our data is secure and encrypted and backed, up the breach is more like a flat tyre on a car, rather than a blimp that explodes with one pop."Kowal has plenty of war stories of organisations experiencing the Hindenburg effect, beyond high-profile cases such as Optus andMedibank Private (ASX:MPL).The trouble is, organisations often  “discover more than want discovered” – a “natural disincentive” for them to get to them the bottom of what data they hold."A lot of them are between a rock and a hard place," he says. "If you go and find everything there are rules requiring you to disclose stuff ."So are you better off finding it or not? It's a really interesting dilemma."Shaped by acquisitionsWith a $300 million market cap, Atturra resulted from the 2015 combination of ad hoc businesses.“We were all things to all people, so we focused on selected areas and data integration was one of those." Kowal says.Atturra’s client base is biased to local government, schools, utilities and defence.The company also boasts a rota of about 70 local manufacturers,  including boot maker RM Williams and brewer Bundaberg.Atturra has been shaped by acquisitions, such as the 2019 pick-up of local government specialist Galaxy 42The company reported revenue of $141 million for the December half, up 27% and a $4.2 million net profit, up 55%.Atturra also held cash of $98 million and is undertaking a share buyback.Kowal claims “no direct peer of our size and scale” on the ASX.Who are we to argue?Augmented reality is the new realityThe local bourse doesn’t have the equivalent of  Nasdaq chip maker Nvidia, which this week became the world's first US$4 trillion company.But investors have piled into local data centre plays such as the $8.7 billion market capNextDC (ASX:NXT)and $2 billion connectivity intermediaryMegaport (ASX:MP1)Arguably they are overloved.A low-key alternative is the $67 million market capVection Technologies (ASX:VR1), which delves into the alternative universe of augmented reality.It’s about more than funky avatars: in late June Vection signed a $4.4 million deal with a top ten global defence contractor, to deliver “mission-critical infrastructure and AI-enabled analytics”.The deal takes revenue to date from the client to $10 million. There's also a potential $21 million in further work over the next five years.This month Vection also signed a $4 million deal with Italian telco, Omniacom Group.Vection says “heightened geopolitical tensions are accelerating demand for AI-powered monitoring solutions that protect national perimeters through rapid big-data analysis.”Who are we to argue (again)?This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decision.Originally published asCriterion: McDonald’s data breach with the lot highlights the hazards of AIMore related storiesStockheadShare Tips: What’s the Domino’s effect this week?It’s no easy gig analysing share prices and company performance but somebody’s got to do it. This week, two of our experts are a tad divided over a certain pizza stock.Read moreStockheadProspect on M&A watch againProspect made it big with its Arcadia lithium project in Zimbabwe. Now its Mumbezhi copper project in Zambia is drawing major attention.Read more