There is huge excitement about ChatGPT and other large generative language models that produce fluent and human-like texts in English and other human languages. But these models have one big drawback, which is that their texts can be factually incorrect (hallucination) and also leave out key information (omission).
In our chapter for The Oxford Handbook of Lying, we look at hallucinations, omissions, and other aspects of “lying” in computer-generated texts. We conclude that these problems are probably inevitable.
do you have a better word for it?
I would call it generating unexpected useless and perhaps dangerous and misleading results. There is no motive like lying. There is no medical condition like hallucinations.