An AI-generated intelligence error nearly triggered a serious military confrontation between the United States and China after a chatbot incorrectly identified the cargo of a Chinese vessel.

According to CNN, the incident occurred this spring during the war with Iran. A US military intelligence report claimed that a Chinese ship operating in the Middle East was carrying components linked to a nuclear weapons programme.

The report was produced with the help of an AI chatbot by an analyst working with US Special Operations Command. The AI incorrectly interpreted information about the ship’s cargo and generated findings that were later incorporated into an official-looking intelligence report.

The report circulated through military channels, prompting preparations to intercept and board the vessel. Armed personnel were reportedly preparing for the operation, while military aircraft were already in the air.

Officials discovered the intelligence was inaccurate shortly before the operation was due to take place. Further examination found that the AI had incorrectly identified the material aboard the ship, and the planned operation was cancelled.

The incident has raised concerns about the use of AI in military intelligence, particularly when AI-generated information can quickly move into high-stakes decision-making without sufficient human verification.

The chatbot involved has not been publicly identified. The episode demonstrates how an AI error that might otherwise be a simple factual mistake can have much more serious consequences when used in military operations.