diff --git a/src/services/ChallengeService.ts b/src/services/ChallengeService.ts
index 4192db3..304cfad 100644
--- a/src/services/ChallengeService.ts
+++ b/src/services/ChallengeService.ts
@@ -1025,9 +1025,32 @@ async function ensureAIPhaseCanBeClosed(challengeId, phaseName = 'AI Screening')
       reviewPrisma.$queryRaw(
         Prisma.sql`
           SELECT "id", "legacySubmissionId"
-          FROM ${submissionTable}
-          WHERE "challengeId" = ${challengeId}
-            AND "status"::text <> 'DELETED'
+          FROM (
+            SELECT
+              "id",
+              "legacySubmissionId",
+              ROW_NUMBER() OVER (
+                PARTITION BY COALESCE("memberId", "id")
+                ORDER BY
+                  "submittedDate" DESC NULLS LAST,
+                  "createdAt" DESC NULLS LAST,
+                  "updatedAt" DESC NULLS LAST,
+                  "id" DESC
+              ) AS "rowNumber"
+            FROM ${submissionTable}
+            WHERE "challengeId" = ${challengeId}
+              AND (
+                "status" IS NULL
+                OR "status"::text = 'ACTIVE'
+                OR "status"::text = 'AI_FAILED_REVIEW'
+              )
+              AND (
+                "type" IS NULL
+                OR UPPER(("type")::text) = 'CONTEST_SUBMISSION'
+              )
+              AND ("virusScan" IS NULL OR "virusScan" = TRUE)
+          ) latest
+          WHERE "rowNumber" = 1
         `,
       ),
       reviewPrisma.$queryRaw(
diff --git a/test/unit/ChallengeService.test.js b/test/unit/ChallengeService.test.js
index 2325db9..262c1e3 100644
--- a/test/unit/ChallengeService.test.js
+++ b/test/unit/ChallengeService.test.js
@@ -25,6 +25,7 @@ const prisma = getClient();
 const reviewSchema = config.get("REVIEW_DB_SCHEMA");
 const reviewTableName = `"${reviewSchema}"."review"`;
 const submissionTableName = `"${reviewSchema}"."submission"`;
+const aiReviewDecisionTableName = `"${reviewSchema}"."aiReviewDecision"`;
 const should = chai.should();
 let reviewClient;
 
@@ -107,7 +108,21 @@ describe("challenge service unit tests", () => {
       ALTER TABLE ${submissionTableName}
       ADD COLUMN IF NOT EXISTS "isLatest" boolean
     `);
+    await reviewClient.$executeRawUnsafe(`
+      ALTER TABLE ${submissionTableName}
+      ADD COLUMN IF NOT EXISTS "virusScan" boolean
+    `);
+    await reviewClient.$executeRawUnsafe(`
+      CREATE TABLE IF NOT EXISTS ${aiReviewDecisionTableName} (
+        "id" varchar(36) PRIMARY KEY,
+        "submissionId" varchar(64),
+        "configId" varchar(255),
+        "isFinal" boolean
+      )
+    `);
     await reviewClient.$executeRawUnsafe(`DELETE FROM ${submissionTableName}`);
+    await reviewClient.$executeRawUnsafe(`DELETE FROM ${aiReviewDecisionTableName}`);
+    await reviewClient.$executeRawUnsafe(`DELETE FROM ${aiReviewDecisionTableName}`);
 
     testChallengeData = {
       typeId: data.challenge.typeId,
@@ -3234,6 +3249,81 @@ describe("challenge service unit tests", () => {
     });
   });
 
+  describe("AI phase closure tests", () => {
+    let originalGetAIReviewConfigByChallengeId;
+
+    beforeEach(() => {
+      originalGetAIReviewConfigByChallengeId = helper.getAIReviewConfigByChallengeId;
+    });
+
+    afterEach(async () => {
+      helper.getAIReviewConfigByChallengeId = originalGetAIReviewConfigByChallengeId;
+      await reviewClient.$executeRawUnsafe(
+        `DELETE FROM ${submissionTableName} WHERE "challengeId" = '${data.challenge.id}'`,
+      );
+      await reviewClient.$executeRawUnsafe(
+        `DELETE FROM ${aiReviewDecisionTableName} WHERE "configId" = 'ai-config-test'`,
+      );
+      await prisma.challengeReviewer.deleteMany({ where: { challengeId: data.challenge.id } });
+    });
+
+    it("skips latest submissions that failed virus scan when checking AI phase closure readiness", async () => {
+      helper.getAIReviewConfigByChallengeId = async () => ({ id: "ai-config-test" });
+      await prisma.challengeReviewer.create({
+        data: {
+          id: uuid(),
+          challengeId: data.challenge.id,
+          scorecardId: "ai-scorecard-id",
+          isMemberReview: false,
+          aiWorkflowId: "workflow-1",
+          createdBy: "test",
+          updatedBy: "test",
+        },
+      });
+
+      await reviewClient.$executeRawUnsafe(`
+        INSERT INTO ${submissionTableName}
+          ("id", "challengeId", "memberId", "type", "status", "submittedDate", "virusScan")
+        VALUES
+          ('sub-1', '${data.challenge.id}', 'member-1', 'CONTEST_SUBMISSION', 'ACTIVE', '2026-01-01T00:00:00Z', TRUE),
+          ('sub-2', '${data.challenge.id}', 'member-1', 'CONTEST_SUBMISSION', 'ACTIVE', '2026-01-02T00:00:00Z', FALSE)
+      `);
+
+      await reviewClient.$executeRawUnsafe(`
+        INSERT INTO ${aiReviewDecisionTableName}
+          ("id", "submissionId", "configId", "isFinal")
+        VALUES
+          ('dec-1', 'sub-1', 'ai-config-test', TRUE)
+      `);
+
+      await service.ensureAIPhaseCanBeClosed(data.challenge.id, "AI Screening");
+    });
+
+    it("allows AI phase closure when all latest submissions failed virus scan", async () => {
+      helper.getAIReviewConfigByChallengeId = async () => ({ id: "ai-config-test" });
+      await prisma.challengeReviewer.create({
+        data: {
+          id: uuid(),
+          challengeId: data.challenge.id,
+          scorecardId: "ai-scorecard-id",
+          isMemberReview: false,
+          aiWorkflowId: "workflow-2",
+          createdBy: "test",
+          updatedBy: "test",
+        },
+      });
+
+      await reviewClient.$executeRawUnsafe(`
+        INSERT INTO ${submissionTableName}
+          ("id", "challengeId", "memberId", "type", "status", "submittedDate", "virusScan")
+        VALUES
+          ('sub-3', '${data.challenge.id}', 'member-2', 'CONTEST_SUBMISSION', 'ACTIVE', '2026-01-03T00:00:00Z', FALSE)
+      `);
+
+      await service.ensureAIPhaseCanBeClosed(data.challenge.id, "AI Screening");
+    });
+  });
+
   describe("delete challenge tests", () => {
     const challengeIds = [];
     let originalEnsureUserCanModifyChallenge;