The new weapon of war: How AI-generated explosions can trigger global panic

From the report

The battlefield of modern warfare is no longer confined to missiles, fighter jets and military installations. An increasingly dangerous front has emerged in the digital world, where artificial intelligence (AI) can manufacture convincing images, videos and audio recordings of catastrophic events that never happened. By fabricating explosions, terrorist attacks and destruction at critical infrastructure sites, hostile actors can manipulate public perception, undermine confidence in governments and destabilize financial markets without firing a single shot. This emerging form of psychological warfare presents a serious challenge to national security and global economic stability.

The danger is particularly significant during periods of economic vulnerability, such as year-end financial settlements and peak winter energy demand. False reports of attacks on oil facilities, airports, electricity networks or strategic maritime ports can generate panic among investors, disrupt supply chains and create uncertainty in international markets. In an interconnected global economy, a fabricated explosion can sometimes produce consequences far beyond the physical damage of an actual attack.

The historical warning is clear. In 1938, Orson Welles’ radio adaptation of The War of the Worlds demonstrated how a fictional emergency, presented through realistic news bulletins, could frighten audiences who mistook entertainment for reality. Nearly nine decades later, artificial intelligence has dramatically increased the potential scale and credibility of such deception. In May 2023, an AI-generated image depicting an explosion near the Pentagon circulated widely on social media, briefly unsettling financial markets before being exposed as fake. The incident illustrated how a fabricated image could influence public perception and financial sentiment within minutes.