We are all so majorly f*d. The general public does not know nor understand this limitation. At the same time OpenAI is selling this a a tutor for your kids. Next it will be used to test those same kids. Who is going to prevent this from being used to pick military targets (EU law has an exemption for military of course) or make surgery decisions?
I hear these complaints and can't see how this is worse than the pre-AI situation. How is an AI "hallucination" different from human-generated works that are just plain wrong, or otherwise misleading? Humans make mistakes all the time. Teachers certainly did back when I was in school. There's no fundamental qualitative difference here. And I don't even see any evidence that there's any difference in degree, either.
Humans can be wrong, but they aren't able to be wrong at as massive of a scale and they often have an override button where you can get them to look at something again.
When you have an AI deployed system and full automation you've got more opportunities for "I dunno, the AI says that you are unqualified for this job and there is no way around that."
We already see this with less novel forms of automation. There are great benefits here, but also the number of times people are just stymied completely by "computer says no" has exploded. Expect that to increase further.