I don't believe hallucination is the correct word when the AI is using algorithms to keep customers addicted and happy. I suggest this is the very same problem that Cambridge Analytica, Zuckerberg, and others have been doing from the start. AI is just branding, and the same addictive algorithms are applied to the public in unregulated fashion. Only difference is the branding is selling a story that AI is actually some kind of entity with the expectation of fantastic competence.
I'm sorry to say, it's incredibly competent at making fools of us.