A false AI-generated intelligence report claimed a Chinese ship carried nuclear-related material during the Iran war.
US military officials prepared to intercept the vessel before discovering the report was inaccurate.
The incident highlighted concerns over AI errors, verification standards and growing military reliance on artificial intelligence.
The growing use of artificial intelligence in military and intelligence operations has raised questions about the risks of relying on AI-generated information in sensitive situations. A recent incident during the Iran war highlighted those concerns when an AI-assisted US intelligence report nearly prompted an operation against a Chinese vessel.
According to an exclusive CNN report, an intelligence report circulated across the US military this spring claimed that a Chinese ship in the Middle East was transporting components linked to a nuclear weapons programme.
The report led US military officials to prepare to intercept the vessel, with two sources cited in the report saying armed personnel were preparing to board it. Military aircraft were also reportedly in the air.
Officials later examined the intelligence more closely and found that the report had been generated with the help of artificial intelligence. A chatbot used by a US Special Operations Command analyst had inaccurately identified the material the ship was carrying.
One source described the report as “entirely false” and said it “almost started a war”. The report said it could not determine what the ship was actually carrying.
How Did The AI Error Happen?
According to the report, the analyst had queried a chatbot about intelligence reporting on the ship’s manifest that originated with US Special Operations Command Pacific, based in Hawaii.
The chatbot combined open-source intelligence with secret signals intelligence held by the government and concluded that the ship was carrying nuclear-related material.
The analyst then used AI again to package the findings into a standard intelligence report, which was subsequently disseminated to military officials.
It was unclear whether the chatbot was commercially available or a US government system. US Special Operations Command Pacific and the Pentagon did not respond to the report’s request for comment.
Why Is The US Military Using AI?
The US military and intelligence community are increasingly using AI for tasks ranging from analysing large volumes of intelligence and selecting targets for strikes to managing budgets, logistics and supply chains.
According to the report, officials see AI as a way to speed up battlefield decisions and avoid falling behind China or other potential adversaries in military technology.
In January, Defence Secretary Pete Hegseth released the Pentagon's “Artificial Intelligence Acceleration Strategy” to speed up military AI adoption. The strategy called for AI experimentation and wider access to AI models across the department.
However, several US officials told the report that the effort remains decentralised, with different parts of the government using different tools and safety standards. There is no single set of standards for verifying information generated by these systems, according to the officials.
What Does The Incident Show?
The episode highlights concerns over the use of AI in military targeting, where inaccurate information could lead to fatal mistakes.
A source familiar with current military policies told the report that AI use in targeting was increasing, while there was “no real guidance” on how having a human in the loop would prevent civilian casualties or fratricide.
According to one source, AI-generated “hallucinations” have occurred elsewhere in the intelligence community. Some officials also said the technology was putting pressure on analysts to produce intelligence faster.
Several sources told CNN that younger analysts were more likely to trust AI tools without sufficient scrutiny.
“AI allows you to get to a bad idea faster,” one source told the CNN.
