Terror Outfits Using AI, ‘Liar’s Dividend’ to Undermine Security Agencies and Recruit Members

The term ‘liar’s dividend’, coined by legal scholars Robert Chesney and Danielle Citron, describes a situation in which the growing prevalence of manipulated media and deepfakes allows people to dismiss genuine information as fabricated.

Intelligence officials say extremist organisations are exploiting this phenomenon to dispute reports of operational setbacks, losses among their ranks and the deaths of senior commanders by claiming that the information released by security agencies is AI-generated or manipulated.

An Intelligence Bureau official explained that the tactic enables terror groups to portray credible information as fake, thereby attempting to undermine official accounts of their activities and minimise the perceived impact of security operations.

According to officials, groups such as Al-Qaeda and the Islamic State have used similar narratives following major losses or announcements concerning the deaths of prominent leaders and commanders.

The growing availability of AI tools has further complicated the challenge. Extremist organisations can use the technology to produce content in regional languages more quickly and at lower cost, expanding their potential reach across different communities.

Officials warn that such material can be sufficiently convincing to create confusion about the credibility of security agencies and the extent of losses suffered by terrorist organisations.

The consequences could extend beyond public perception. Intelligence officials believe the tactic may complicate criminal investigations and prosecutions by creating disputes over the authenticity of digital evidence and official communications.

Investigators and prosecutors could face additional challenges in establishing the credibility of material when extremist groups circulate competing narratives claiming that official information has been manipulated.

Another official warned that repeated attempts to discredit security agencies could gradually weaken public confidence in their statements. Authorities may then need to devote additional resources to verifying information and responding to false or misleading claims.

The tactic could also serve a recruitment purpose. When security agencies report significant losses suffered by groups such as Lashkar-e-Taiba and Jaish-e-Mohammed, those organisations may attempt to dispute the reports to prevent potential recruits from viewing them as weakened.

Officials say publicising the outcomes of security operations can help inform citizens about the threat posed by extremist organisations and demonstrate the impact of counterterrorism efforts. Attempts to dismiss such information as fabricated could undermine that objective.

Intelligence officials further warn that people who lose confidence in established information sources may become more susceptible to extremist messaging. Terrorist organisations could exploit this distrust to draw individuals towards controlled information channels where narratives are selectively presented to support radicalisation.

The increasing use of AI-generated material therefore presents security agencies with a challenge that extends beyond identifying fabricated content. Authorities must also contend with deliberate attempts to portray authentic information as false.

Officials expect extremist organisations to continue exploiting this tactic following future counterterrorism operations, making the verification of digital material and the timely communication of credible information increasingly important in efforts to counter radicalisation and preserve public trust.