The software qualifies as an AI system because it performs complex data analysis and linkage across multiple databases to support investigations, which goes beyond simple software. The event involves the use and development of this AI system. However, the article does not report any realized harm or incident resulting from the AI system's use; rather, it reports on the cessation of tests with real data due to legal concerns and the switch to pseudonymized data. There is no indication that the AI system caused injury, rights violations, or other harms. The concerns raised are about potential legal non-compliance and privacy risks, which have been addressed by stopping the use of real data in tests. Therefore, this event does not meet the threshold for an AI Incident or AI Hazard. It is best classified as Complementary Information because it provides important context about governance, legal compliance, and the development process of an AI system, enhancing understanding of the broader AI ecosystem and responses to potential risks.