AI-generated deepfake image briefly crashes stock market
An AI-generated deepfake image of smoke at the Pentagon posted on Twitter on May 19, 2023 went viral and caused the S&P 500 to drop sharply, wiping out billions of dollars in market value. The markets recovered quickly once the image was identified as fake, marking the first documented instance of a deepfake directly affecting the stock market.
What happened
On May 19, 2023, a photograph appeared on Twitter showing smoke billowing from the Pentagon after an apparent explosion.
The image went viral within minutes, causing the S&P 500 to drop sharply and wiping out billions of dollars in market value.
The image was later revealed to be AI-generated.
Reported impact
The markets recovered as quickly as they had tumbled. The incident marked the first time the stock market had been directly affected by a deepfake.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.