Which of course they are going to try to brush it all away. Better than admitting that this problem very much still exists and isn’t going away anytime soon.
Don't get me wrong, I use AI every day, but it's mostly as a localized code complete or to help me debug tricky issues. Meaning I've written and understand the code myself, and the AI is there to augment my abilities. AI works great if it's used as a deductive tool.
Where it runs into issues is when it's used inductively, to create things that aren't there. When it does this, I feel the hallucinations can be off the charts -- inventing APIs, function names, entire libraries, and even entire programming languages on occasion. The AI is more than happy to deliver any kind of information you want, no matter how wrong it is.
AI is not a tool, it's a tiny Kafkaesque bureaucracy inside of your codebase. Does it work today? Yes! Why does it work? Who can say! Will it work tomorrow? Fingers crossed!
I use AI for rather complex tasks. It's impressive. It can make a bunch of non-trivial changes to several files, and have the code compile without warnings. But I need to iterate a few times so that the code looks like what I want.
That being said, I also lose time pretty regularly. There's a learning curve, and the tool would be much more useful if it was faster. It takes a few minutes to make changes, and there may be several iterations.
It sounds like the guys in this article should not have trusted AI to go fully open loop on their customer support system. That should be well understood by all "customers" of AI. You can't trust it to do anything correctly without human feedback/review and human quality control.