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


When an AI model for code-editing company Cursor hallucinated a new rule, users revolted.

On Monday, a developer using the popular AI-powered code editor Cursor noticed something strange: Switching between machines instantly logged them out, breaking a common workflow for programmers who use multiple devices. For companies deploying these systems in customer-facing roles without human oversight, the consequences can be immediate and costly: frustrated customers, damaged trust, and, in Cursor's case, potentially canceled subscriptions. In that incident, Jake Moffatt contacted Air Canada's support after his grandmother died, and the airline's AI agent incorrectly told him he could book a regular-priced flight and apply for bereavement rates retroactively.

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