The US military reportedly came dangerously close to launching an operation against a Chinese vessel after an AI-assisted intelligence report falsely claimed the ship was carrying components linked to a nuclear weapons program.

AI-Generated Intel Triggered Chinese Ship Interception Plan

The intelligence report circulated within the US military this spring, while the war with Iran was ongoing, CNN reported on Friday, citing four sources familiar with the incident.

The report flagged a Chinese vessel traveling through the Middle East and claimed it was transporting nuclear weapons program components.

US officials responded by preparing to intercept the ship, with armed personnel reportedly ready to board and military aircraft already airborne.

Officials later reviewed the intelligence and discovered that a chatbot used by a Special Operations Command analyst had misidentified the ship's cargo.

One source described the report as "entirely false" and said it "almost started a war."

The Department of War did not immediately respond to MarketDash's request for comment.

AI Hallucination Raises Military Safety Concerns

According to the publication, the analyst used a chatbot to analyze intelligence concerning the vessel's manifest. The system combined open-source information with classified signals intelligence before incorporating the findings into a standard intelligence report.

The incident highlights the risks of relying on generative AI for high-stakes intelligence analysis, where an inaccurate conclusion could potentially influence military decisions.

The close call comes as the Pentagon accelerates its adoption of AI across military operations. The department has expanded its GenAI.mil platform, which now offers government versions of Google Gemini, Grok and OpenAI's ChatGPT.

According to a source, AI hallucinations like the one in this case have become a recurring issue across the intelligence community as these tools spread through government agencies.

Senators Seek Probe Into Military AI Errors

After the report's publication, Democratic senators urged government watchdogs to investigate alleged AI-related errors in US military targeting plans, a separate CNN report stated.

In a Saturday letter to Defense Secretary Pete Hegseth and Director of National Intelligence Jay Clayton, the senators said the incident raised concerns that agencies are prioritizing rapid AI adoption over effective oversight.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.