AI Testing Misconfiguration: How 3,000 Tests Found Zero Bugs and Triggered a $700K Crisis

AI-generated test volume can mask critical quality gaps when misconfigured, creating a dangerous false sense of coverage that crumbles under production conditions. This cautionary tale reveals that testing 3,000 scenarios within normal operational boundaries isn't comprehensive validation—it's expensive regression checking. Organizations adopting AI testing must prioritize configuration governance and boundary condition validation, not merely chase efficiency metrics without understanding what's actually being tested.