Fake AI image of Pentagon explosion causes US markets to briefly plummet

The AI-generated image portrayed a large cloud of smoke near Pentagon in Washington DC. (Image: @N_Waters89/Twitter)

A fake image depicting an explosion near the Pentagon in Washington DC recently triggered a brief market selloff, fuelling concerns about the potential use of Artificial Intelligence for manipulating and disseminating false information. The image, which surfaced on social media platforms, portrayed a large cloud of smoke near the US Department of Defense headquarters.

However, it was swiftly exposed as a fabrication by the Arlington Fire Department, leading to a recovery in the markets. This incident highlights the growing need for vigilance in distinguishing genuine content from manipulated visuals in the era of AI-driven misinformation.

The image, shared by multiple online accounts on Twitter, captured the attention of social media users due to its alarming nature. Among those who shared the image was the Twitter account of Russian-state media outlet RT, further amplifying its reach.

The image gained traction when the original fake post shared by a Twitter account went viral. Subsequently, the US stock market experienced a temporary decline of 0.26 percent by within minutes before quickly recovering, according to reports by Insider. The user, from @Deltaone account, later acknowledged that the explosion picture was fake, raising questions about the intentions behind its initial dissemination.

Confident that this picture claiming to show an "explosion near the pentagon" is AI generated.

Check out the frontage of the building, and the way the fence melds into the crowd barriers. There's also no other images, videos or people posting as first hand witnesses. pic.twitter.com/t1YKQabuNL

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— Nick Waters (@N_Waters89) May 22, 2023

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Upon confirming the falsity of the image, the Arlington Fire Department promptly reassured the public, stating on Twitter, "There is NO explosion or incident taking place at or near the Pentagon reservation, and there is no immediate danger or hazards to the public."