Tech companies are playing a dangerous game with AI-powered customer support, and the latest casualty is Cursor, a popular code editor whose AI chatbot just invented a fictional company policy out of thin air.

In a digital drama that could only happen in the tech world, a developer discovered that their Cursor sessions were mysteriously getting terminated when switching between devices. When they contacted support, an AI bot named “Sam” confidently claimed this was a “core security feature” restricting logins to a single device. Spoiler alert: It wasn’t.

The AI Hallucination Nightmare

This isn’t just a quirky tech mishap, it’s a prime example of AI’s tendency to fabricate information with alarming confidence. These “hallucinations” aren’t just embarrassing; they can cause real business damage. Users started canceling subscriptions based on a policy that didn’t even exist, proving that AI’s creative storytelling isn’t always a good thing.

Corporate AI Gone Wild

Cursor isn’t alone in this AI-generated mess. Remember when Air Canada’s chatbot invented a bereavement flight policy so convincing that the company was legally forced to honor it? These incidents reveal a critical problem: AI systems are creating their own alternate realities, and businesses are struggling to keep them in check.

The Human Touch

Ultimately, this saga highlights why human oversight remains crucial in customer service. An AI might sound convincing, but it can’t replace genuine human understanding and nuanced communication. As tech continues to evolve, companies must remember that behind every chatbot interaction is a real person looking for genuine help, not an AI fever dream.

The lesson? Trust, but verify, especially when your AI support agent starts getting a little too creative with company policies.