AI & Fake News: A False AI-Generated Report Pushes a Solar Firm Toward Collapse; When Will There Be Control?

Losses Worth Nearly ₹200 Crore Due to One Fake News Story

The misleading AI-created article caused the cancellation of contracts worth $388,000 (around ₹3.2 crore) and severely damaged the company’s reputation and credibility.
The long-term estimated financial impact?
Nearly ₹200 crore — enough to push the company to the brink of collapse.

This is not an isolated incident. In the last two years, at least six such cases have been reported in the U.S., involving AI tools spreading harmful and completely false news.

Defamation Lawsuit Filed Against Google

The solar company repeatedly attempted to get the false article removed from Google search results — but without success.
Finally, they filed a defamation lawsuit against Google, seeking ₹900 crore in compensation.

Google acknowledged that errors can occur due to new technologies and said they took corrective action. However, the fake news story still appears in search results, continuing to harm the company’s public image.

Company founder Justin Nielsen said:

“Years of hard-earned trust has been destroyed by a single false story.”

Fear of Shutdown: “Fake News Is Killing Us”

Nielsen warned that if the misinformation is not removed soon, they may have to shut down the company. Customers have lost trust, and business has dropped sharply.

Nielsen is demanding immediate removal of the false information before the company collapses entirely.

Who Is Responsible for AI-Generated Fake News?

The incident has sparked major legal questions:
If AI spreads false information, who is liable?

According to Syracuse University professor Nina Brown, if AI companies are held responsible for every error, the number of lawsuits will explode.

Experts believe:

New laws are needed to regulate AI-generated information.

Technology companies must implement stricter safeguards.

Governments and tech leaders must work together to prevent the collapse of small businesses.

If not, more companies may face the same fate as Wolf River Electric.