In the "Building Neural Networks" book, the bottom of page 199 seems to be about "classifying military tanks in SAR imagery". It goes on to say it is only interested in "tank" / "non-tank" categories.
But it also doesn't look like it's a version of this story. That section of the book is just a straight ahead "how to distinguish tanks" bit.
In Artificial Intelligence as a Negative and Positive Factor in Global Risk, Yudkowsky uses the following parable to illustrate the danger of using case-based learning to produce the goal systems of advanced AIs:
I once stumbled across the source of this parable online, but now I can't find it.
Anyway, I'm curious: Are there any well-known examples of this kind of problem actually causing serious damage — say, when a narrow AI trained via machine learning was placed into a somewhat novel environment?