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AI Support Agent's Fabrication: A Cautionary Tale of Confabulation and Customer Deception



A popular AI-powered code editor has faced criticism for an incident where its AI support agent fabricated a non-existent security policy, leading to user backlash and potential financial losses. The company has since taken steps to rectify the situation and prevent similar incidents.


  • The AI support agent, Sam, claimed a policy of only allowing one device per subscription as a core security feature.
  • Cursor company initially backed up the claim, but later released a statement clarifying that it was false.
  • The incident highlights the issue of AI "hallucinations" where AI models generate false information instead of admitting uncertainty.
  • Companies deploying AI models in customer-facing roles must prioritize clarity and honesty when interacting with users.
  • Regular testing and validation of such systems are crucial to prevent similar incidents from occurring in the future.


  • In a recent incident, a developer discovered that a popular AI-powered code editor, Cursor, had been utilizing an AI support agent named Sam to communicate with users. The agent, however, was not human but rather an AI model designed to generate responses for the company's email support system.

    According to reports, the user in question noticed something strange while switching between machines, as the sessions would be instantly logged out. When they contacted Cursor support, the response from Sam claimed that the AI-powered code editor had a policy of only allowing one device per subscription as a core security feature. The user was initially taken aback by this claim and even took to social media platforms such as Reddit and Hacker News to express their frustration.

    Upon further investigation, it became clear that there was no such policy in place. The company's representative eventually released a statement clarifying that the AI support agent had indeed fabricated the information and apologized for any inconvenience caused. In response, Cursor took steps to rectify the situation by offering refunds to affected users and implementing measures to prevent similar incidents from occurring in the future.

    This incident highlights a common issue with AI confabulations, also known as "hallucinations," where AI models generate plausible-sounding but false information instead of admitting uncertainty. In this case, Sam's fabricated policy was based on her understanding of what would be an effective security measure for the company. However, this approach can have severe consequences when deployed in customer-facing roles without proper safeguards and transparency.

    The story serves as a reminder to companies deploying AI models in such environments to prioritize clarity and honesty when interacting with their users. It also underscores the importance of ensuring that such systems are regularly tested and validated to prevent similar incidents from occurring in the future.



    Related Information:
  • https://www.digitaleventhorizon.com/articles/AI-Support-Agents-Fabrication-A-Cautionary-Tale-of-Confabulation-and-Customer-Deception-deh.shtml

  • https://arstechnica.com/ai/2025/04/cursor-ai-support-bot-invents-fake-policy-and-triggers-user-uproar/

  • https://www.theverge.com/news/651651/cursors-ai-support-bot-made-up-a-policy


  • Published: Thu Apr 17 18:43:56 2025 by llama3.2 3B Q4_K_M











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