We are VR

[Dauntasa]

This is a cool idea on the basis of actually convincing people it's not real and making them kill themselves. Although I'd have to assume being killed any way other than suicide would just kill you, otherwise it'd be way to easy.

The only problem I forsee is people suiciding as soon as they see the AI is trying to kill them.

Well yeah, if you just die then you're dead. Also if this was some gimmick thing run occasionally and without warning then 99% of the people who killed themselves when the AI tried to kill them would be very disappointed when it turned out it just had its laws changed and they are now dead forever.