The US narrowly avoided boarding a Chinese ship based on an "entirely false" US intelligence report generated with the help of AI tools, according to a CNN report.

That erroneous intelligence, submitted by a US Special Operations Command analyst, suggested the Chinese ship was transporting nuclear arms program components through the Middle East, according to "four sources familiar with the episode" cited by CNN. The US military was preparing to intercept and board the ship, with air support, before officials discovered a chatbot used in generating the report had "inaccurately identified the material the ship was carrying."

One source told CNN the AI-powered fiasco "almost started a war."

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As European militaries adapt to the use of AI and drones in modern warfare, a NATO-backed startup is helping to deploy AI-driven target detection and selection that can run on small drones for surveillance and attack missions.

The company, Scaleout Systems, was originally founded by researchers from Uppsala University in Sweden in 2018, and initially focused on training and deploying machine learning models directly on the hardware available in commercial trucks and other vehicles. But once Russia launched its full-scale invasion of Ukraine in 2022, the company pivoted toward defense applications.

“With the war in Ukraine and a shifting world, we realized that this technology can be very important to operationalize edge data and sensor data for machine learning to make sure that NATO allies have found that strategic advantage,” Andreas Hellander, cofounder and CEO of Scaleout Systems, told Ars.

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