AI doesn't hallucinate.

A bold statement with no evidence. I read AI experts on this subject and they assure me that they do (hallucinate).

From what I've gathered it out and out lies and makes up evidence too.

They do that too. These are the cheap versions that are not trained well.

Like I said, training AI's can be very expensive. Meanwhile the west is obsessed with production of these 'creatures' by increasing the proliferation of 'data centres' especially in the US. A wrong approach from my perspective. Chinese are better at it in many ways.