Angela Lipps, a Tennessee resident, was wrongfully imprisoned for 160 days after an AI system mistakenly identified her as a suspect in a North Dakota bank fraud case. Arrested in July 2025, Lipps was held without bail and denied the opportunity to prove her innocence until December, when her lawyer presented evidence showing she was in Tennessee at the time of the crime. The charges were dropped, but the ordeal left her financially and emotionally devastated. Lipps' case highlights the dangers of over-reliance on AI in law enforcement. Similar incidents have occurred globally, with AI systems misidentifying individuals and leading to wrongful arrests. Despite AI's potential, these cases underscore the need for human oversight and caution in its application, as errors can have severe consequences for innocent people.