A false intelligence report created with the assistance of artificial intelligence reportedly came close to triggering a US military operation against a Chinese vessel in West Asia during the war with Iran, CNN reported, citing multiple sources familiar with the incident.
According to the report, the intelligence document circulated within the US military this spring and claimed that the Chinese ship was carrying components associated with a nuclear weapons programme. The information immediately raised concerns and led US military officials to prepare for an operation to intercept the vessel.
CNN, citing four sources familiar with the episode, reported that the military moved towards taking action against the ship. Two sources said armed US personnel were preparing to board the vessel, while two others said military aircraft had already been deployed in the air.
AI Error Discovered Before Operation
The planned operation was reportedly stopped after officials took a closer look at the intelligence and found that the report had been prepared with the assistance of an AI system.
According to sources cited by CNN, an analyst with US Special Operations Command had used a chatbot while examining intelligence related to the ship’s manifest. The AI system incorrectly identified the material being transported. CNN said it could not determine what the vessel was actually carrying.
One source described the intelligence as “entirely false” and said the incident “almost started a war”. The source warned that military action against a Chinese vessel could have created a risk of escalation between the United States and China.
The original intelligence had come from US Special Operations Command Pacific in Hawaii. The analyst reportedly used an AI chatbot to assess information about the ship’s cargo and later used AI again to turn the findings into a standard intelligence report. The report was subsequently distributed through military channels.
CNN reported that the chatbot combined open-source information with classified signals intelligence available within government systems before reaching the incorrect conclusion. It remains unclear whether the AI system was commercially available or developed specifically for the US government.
US Military Expands Use of AI
The incident comes as the US military and intelligence community are increasing their use of artificial intelligence for a range of activities. These include analysing large amounts of intelligence, selecting targets, moving military resources, and managing budgets, logistics and supply chains.
The episode has also highlighted concerns about the potential consequences of AI-generated errors when such information is used for military targeting during an active conflict.
US officials have argued that faster AI adoption is necessary to help the military make decisions more quickly and keep pace with potential adversaries using similar technologies.
In January, US Secretary of War Pete Hegseth announced the Pentagon’s “Artificial Intelligence Acceleration Strategy”, aimed at speeding up the adoption of AI across the military.
“We will unleash experimentation, eliminate bureaucratic barriers, focus our investments and demonstrate the execution approach needed to ensure we lead in military AI,” Hegseth said while announcing the strategy.
The initiative also seeks to expand access to AI throughout the US Department of War. A memo announcing the programme said its goal was to “democratise AI experimentation and transformation across the Department by putting America’s world-leading AI models directly in the hands of our three million civilian and military personnel, at all classification levels.”
Concerns Over AI Verification and Military Decisions
Several US officials familiar with the situation told CNN that AI adoption across the government remains decentralised, with different agencies and military units using different systems, procedures and safety standards.
According to the report, there is no single framework governing how AI-generated information should be verified before being used in intelligence products. The variety of AI systems in use also means their capabilities and reliability can differ.
The incident has prompted concerns among intelligence officials about inaccurate AI-generated information entering formal intelligence reports and subsequently influencing military decisions.
One source familiar with current military policies told CNN that the use of AI in targeting is increasing, while there is limited guidance on how having a human involved in the process can prevent civilian casualties or incidents involving friendly forces.
CNN also reported that the AI error involving the Chinese ship may not have been an isolated case, citing a source familiar with the wider use of AI tools across the US government.
Some experienced intelligence officials who support the use of AI have reportedly expressed concern that the technology could create pressure on analysts to produce and distribute intelligence more rapidly. According to sources cited by CNN, this could increase the risk of errors.
Younger analysts, who are generally more familiar with AI tools, may also be more inclined to accept AI-generated information without sufficient verification, the sources said.
As one source put it, “AI allows you to get to a bad idea faster.”
The Chinese ship incident, as described by CNN’s sources, demonstrates the potential risks of inaccurate AI-generated intelligence entering established military reporting systems, particularly when such information is produced during an active conflict and could influence operational decisions.