
AI use is changing how much companies pay for cyber insurance
In July 2025, McDonald’s had an unexpected problem on the menu, one involving McHire, its AI-powered platform used to recruit and screen job applicants. The system, developed by Paradox.ai, featured a rookie-level security flaw: the backend for restaurant operators accepted “123456” as both username and password, and lacked multi-factor authentication. As a result, the personal data of around 64 million applicants was in danger. Luckily, the flaw was uncovered by security researchers Ian Carroll and Sam Curry, who notified the company. With organizations rushing to deploy AI tools without fully auditing them, incidents like this are not uncommon. AI adoption is moving faster than AI security...