Palo Alto Networks and Koi Security sued over alleged AI hallucinations in security report

As outlined in SDx Central, Palo Alto Networks and its recent acquisition, Koi Security, are facing a lawsuit alleging that AI hallucinations were used in a security report. This report is alleged to have falsely accused a company of Chinese cyber-espionage and potentially inflated the value of Koi's acquisition.

MeetingTV, a videoconferencing provider, has filed a lawsuit contesting a Koi Security blog post that accused its domain and Zoomcorder service of being fronts for a China-linked threat actor. MeetingTV claims the blog was published during acquisition negotiations to showcase Koi's AI platform, Wings, and inflate its valuation. The suit alleges Koi published "unverified AI-generated conclusions" without adequate human oversight, despite the known risks of AI "hallucinations" and false positives in cybersecurity. MeetingTV disputes the existence of a key piece of malware mentioned in the report and claims the AI-generated accusations extended to its Zoomcorder product.

The lawsuit includes an email from MeetingTV's CEO to Palo Alto Networks' CEO requesting the removal of the "false report" and the delisting of MeetingTV's domains, which had been flagged as malicious by multiple security firms following Koi's report. The original Koi report has since been updated to remove mentions of MeetingTV.

Source: SDx Central