In my opinion, both can be true and it’s not either one or the other:
ML has surprised even many experts, in so far as a very simple mechanism at huge scale is able to produce some aspects of human abilities. It does not seem strange to me that it also reproduces other human abilities, like hallucinations. Maybe they are closer related then we think.
Company leaders and owners are doing what the capitalistic system incentives them to do: raise their companies value by any means possible, call that hallucinating or just marketing.
IMO it’s the responsibility of government to make sure AI does not become another capital concentration scheme like many other technologies have, widening the gap between rich and poor.