A chatbot used by Air Canada hallucinated an inaccurate bereavement discount policy, and a customer who flew based on this information sued the company over being misled. The small claims court sided with the deceived customer, arguing that the chatbot was acting as an official agent of Air Canada, and that there was no reason a customer should have to double check resources from one part of the Air Canada website against different parts of the same website.
I like to call it a hallucination, because while yes the thing isn't smart enough to experience thoughts, it really gets at how absolutely unreliable these things are. People are talking to the thing and taking it seriously, and it's just watching the pink dragons circle around