AI becoming more powerful, but its hallucinations are getting worse

Last month, an AI bot that handles tech support for Cursor, an up-and-coming tool for computer programmers, alerted several customers about a change in company policy. It said they were no longer allowed to useCursor on more than just one computer.

In angry posts to internet message boards, the customers complained. Some cancelled their Cursor accounts. And some got even angrier when they realised what had happened: The AI bot had announced a policy change that did not exist.