Politico’s Internal Research Tool Keeps Spitting Out Literal Fake News

Politico’s AI-powered research tool for premium subscribers has been generating fabricated reports about fictional lobbying groups, including detailed analyses of the “Basket Weavers Guild” and “League of Left-Handed Plumbers.”

The tool, created in partnership with startup Capitol AI, was designed to help Politico Pro subscribers quickly generate comprehensive reports from the outlet’s journalism. Instead, it’s producing what union members are calling garbled intelligence and made-up Washington news, according to Semafor. (RELATED: New AI Model Would Rather Ruin Your Life Than Be Turned Off, Researchers Say)

“The most requested feature by our subscribers was a customizable summary of our POLITICO content,” Politico told Semafor, defending the beta product as a “work in progress.”

Capitol is in Berlin visiting the @axelspringer headquarters—parent of our flagship client, @politico . Located right at the historic site of the Berlin Wall, it’s a fitting place to discuss transformation and innovation.

We met with CEOs Mathias Döpfner and Mark Dekan to… pic.twitter.com/GrDyLCP3t0

— Capitol (@capitolai) June 3, 2025

The fabricated reports have become a rallying point for Politico’s editorial union, which filed a complaint earlier this year alleging the company violated contract language requiring AI tools to comply with “journalistic ethics and involve human oversight,” Semafor reported. Union members have printed out examples of the AI’s fictional output and posted them around the newsroom in Virginia.

Asked about lobbying efforts by the non-existent Basket Weavers Guild, the AI reportedly generated a detailed report claiming the group was advocating for stronger data privacy protections before the House Energy and Commerce Committee. The equally fictional League of Left-Handed Plumbers was said to be lobbying for the “No Tax on Tips Act,” with the AI inventing specific details about Republican Texas Sen. Ted Cruz.

The tool has also produced factual errors about real events. When it first launched, it generated reports suggesting Roe v. Wade remained in effect, despite Politico having broken the news of its reversal in 2022, according to Semafor.

“With the potential overturning of Roe v. Wade, Republican lawmakers in Indiana are contemplating a special session,” one AI-generated report stated, as if the Supreme Court decision hadn’t already happened.

“This isn’t just a contract dispute, it’s a test of whether journalists have a say in how AI is used in our work,” said Newsguild president Jon Schleuss, whose organization represents Politico’s union, in a statement to WIRED. The dispute is reportedly heading to arbitration in July, potentially setting a precedent for AI oversight in newsrooms.

Politico’s parent company, Axel Springer, has been aggressively pushing AI adoption across its properties. CEO Mathias Döpfner recently told staff that “there will only be two types of companies: those that use artificial intelligence extensively to break new and better ground, and those that fail to grasp this and will therefore disappear,” Semafor reported.

The Daily Caller News Foundation reached out to Politico, Capitol AI, Newsguild and Axel Springer but did not hear back by publication.

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