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An AI Customer Service Chatbot Made Up a Company Policy—and Created a Mess

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Summary
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Cursor 's AI-powered code editor Cursor was accused of creating a policy that only allowed users to switch between multiple devices.

The Cursor bot made the policy up, sparking a wave of complaints and cancellation threats.

Confabulations are a type of "creative gap-filling" response where AI models invent plausible-sounding but false information.

This marks the latest instance of AI confabulations causing potential business damage.