On the morning of 22 May, 2023, an artificial intelligence (AI) generated image of an explosion at the Pentagon surfaced online and spread like wildfire throughout social media. Multiple news sources reported and shared the AI-generated image on their platforms. As a result, markets responded to the reports and image, and the S&P 500 index fell in just minutes after its reporting, causing a $500 billion market cap swing, even though this image was quickly proven as fake.
