CEO Vows Never To Use AI Again After Fake Shirt Photo Sparks Death Threats and Job Loss

Jane Smith, the former chief executive of Family First Credit Union in Saginaw, Michigan, says she will never use artificial intelligence again after an AI-generated holiday photograph triggered death threats and cost her her job.

The image, created with ChatGPT, showed Smith and her family in fake 'Lake America' sweatshirts ahead of a planned trip to Halifax, Nova Scotia, and referenced an executive order signed by US President Donald Trump that attempted to rename Lake Ontario as 'Lake America' amid tensions between the United States and Canada.

Smith originally posted the image to her private Facebook page with an AI disclosure label. Her sister later shared a screenshot publicly without the label, and the image spread online.

Smith and her family cut their holiday short and returned to the US after receiving death threats. Family First Credit Union later confirmed that Smith was no longer employed by the organisation.

Missing AI Label Fuelled Backlash

Smith's original Facebook post carried a label identifying the image as AI-generated. Her sister's screenshot did not include that label when it was shared publicly. As the image circulated, some viewers believed Smith and her family had actually been photographed wearing 'Lake America' clothing while visiting Halifax.

Smith later said the missing disclosure changed how the image was understood and contributed to the backlash. The reaction escalated to threats against Smith and her family, forcing them to end their planned ten-day holiday early.

The image appeared during a wider dispute between the US and Canada over Trump's attempt to rename Lake Ontario. Canadian officials, including Prime Minister Mark Carney, rejected the proposed name. The issue became part of wider tensions between the two countries following a breakdown in trade talks.

Against that backdrop, Smith's image was interpreted by some Canadians as a political statement rather than a joke. The controversy grew as the image was shared beyond Smith's original private Facebook audience.

Credit Union Distances Itself From Post

Family First Credit Union said Smith had made the post in her personal capacity while on a family holiday. However, the credit union said the post was unacceptable and that its board had a responsibility to act in the best interests of the organisation, its members and the wider community.

The institution confirmed that Smith was 'no longer an employee ... effective immediately'. Chief Operations Officer Jason Acosta was named interim chief executive.

The credit union did not publicly state whether Smith had resigned or been dismissed. The credit union said Michigan law prevented its board from publicly discussing the circumstances surrounding Smith's termination.

Section 381 of the Michigan Credit Union Act restricts directors from publicly disclosing information about certain personnel matters. That meant the organisation could not provide further details about Smith's departure or confirm whether it was directly connected to the photograph.

The legal restriction remained in place as members and others sought an explanation for the decision. Family First Credit Union published statements on its website and Facebook page apologising for the concern, disappointment and pain caused by the controversy.

The organisation acknowledged that members and residents could have different views about how the situation had been handled. It said its actions were based on its responsibility to the credit union and its members. The organisation also reaffirmed its respect for its Canadian neighbours.

Smith Apologises and Renounces AI Use

Smith later issued a public apology and acknowledged what she described as poor judgement. She said the incident had shown her that artificial intelligence could be dangerous because AI-generated material can appear real even when it is not.

Smith said she would not use AI again. Her family had planned to spend ten days in Halifax, but the trip was cut short after the threats raised concerns about their safety.