Why are people calling them hallucinations and not just errors, flaws or bugs? You can't hallucinate if all of your perception is one internal state. Chatbots don't dream of electric sheep.
Personally, I think confabulations would be a better term. To the best of my understanding, these AI rely on a model similar to the reconstructive theory of memory in humans. The connotation of the word confabulation indicates no maliciousness while highlighting the erroneous nature of the action.
