Since Israel and the United States launched military strikes against Iran in February, tensions have escalated across the Gulf region, sparking not only physical conflict but also a battle for information control. In this context, artificial intelligence has emerged as a key tool for both sides, with authorities, analysts, and journalists relying on commercial satellite imagery—like that from Google Earth—as a reliable way to verify events. However, on July 30, Google introduced a new feature that allowed users to generate AI-created images and blend them with real satellite data. Within hours, users created images of a nuclear plant in Iran, a bomb crater near a Gaza hospital, and floods near the U.S. Capitol. The feature was quickly removed after backlash from experts and media, who warned of the dangers of AI-generated misinformation. The U.S. government also restricted journalists' access to satellite imagery in the region, citing security concerns during the conflict. AI-generated content has increasingly become a source of misinformation. In March, OpenAI removed its Sora video app after public pressure, while Google released Veo 3, a video generator, in May 2025—just weeks before the Israel-Iran conflict began. AI videos depicting missile attacks on Tel Aviv initially included a visible watermark from Veo, but users later removed it. Similarly, fabricated footage of an explosion at Iran’s Evin prison spread rapidly on social media after the strike and was even shared by major news outlets like Sky News and the BBC. Experts from Citizen Lab suggested the video was part of an AI-driven influence campaign, likely orchestrated by Israel. However, efforts to detect and trace such misinformation have struggled to keep up with its spread. Regulatory efforts to control AI have lagged behind its rapid development. The EU AI Act, enacted in 2024, began implementation in August 2026, but its rules remain voluntary rather than legally binding. In California, a 2024 AI transparency law took effect in August, requiring companies that develop generative AI tools to disclose their use of AI. However, these regulations will not fully apply to major platforms until at least 2027. Meanwhile, detection tools required by these laws are not yet ready—seven of 13 tested AI providers lack public detection methods, and many others are vulnerable to manipulation. The concept of the "liar's dividend"—where convincing fake content allows bad actors to undermine real evidence—has become a growing concern in modern conflicts. The Google Earth incident highlighted how AI-generated images can distort public understanding of wars and crises. Experts stress the need for mandatory provenance tracking, stronger detection systems, and a responsibility for companies to ensure the integrity of their AI systems. Google had previously integrated the C2PA provenance standard into its Pixel 10 smartphone, and Apple’s latest iPhone 18 Pro models now support cryptographically signed reference images. Hany Farid, a leading deepfake expert, said the issue of trust in visual records has become mainstream, requiring mainstream solutions. While Google plans to reintroduce its AI image feature with stronger safeguards, lingering doubts about the authenticity of images from war zones remain.