US military nearly struck Chinese ship over false AI intelligence report

A false intelligence report generated with AI assistance nearly triggered a US military operation against a Chinese vessel in the Middle East this spring, according to four sources. The incident occurred amid the war with Iran and could have sparked armed conflict between the two powers. The report, created by an analyst at a special operations command, falsely claimed the ship was transporting components of a nuclear weapons program. US forces prepared to intercept and board the vessel, with aircraft already launched, before officials discovered the chatbot had misidentified the cargo. The analyst used AI to format the conclusions into a standard intelligence report. The Pentagon has promoted rapid AI integration across military operations, with Defense Secretary Pete Hegseth releasing an "AI Acceleration Strategy" in January. However, officials say oversight varies widely across programs, and analysts warn that AI "hallucinations" could lead to catastrophic miscalculations, with one source noting "AI allows you to reach a bad idea faster."