There's a town in northern Norway where the municipality used AI tools / LLMs to aid their process in restructuring schools. So they were going to close and merge a bunch of schools, and pointed to research that supported their plans.
But it turns out that the AI they used, had hallucinated this research. The AI had correctly used relevant researchers, but had hallucinated the work itself.
It wasn't until a investigative journalist started going through the citations, and reaching out to the researcher / scientist, to get his opinion, that it was discovered. The researchers cited in the report immediately told the journalist that they had never written or published those cited papers.
Makes one work what other stuff has happened around the globe, where lazy policy makers or bureaucrat have just phoned in their work by using ChatGPT to write a report...or worse, in bad faith used those tools to make up fake research to support their goals.