Artificial intelligence is transforming misinformation from isolated falsehoods into scalable systems of synthetic reality production. In South Asia, where rapid digitalization intersects with political polarization, emotional publics, and uneven institutional trust, the challenge increasingly extends beyond “fake news” itself. This essay argues that misinformation and AI-driven disinformation should not be understood merely as technological problems but as socio-political processes embedded within digital sociality and struggles over legitimacy. Drawing upon anthropology, communication studies, and digital theory, the essay examines how platforms increasingly shape public life, how AI destabilizes trust, and how digital diplomacy transforms contemporary power. Ultimately, the future security crisis of South Asia may concern not only territorial conflict but also the erosion of shared realities necessary for democratic life.