Particle.news

Download on the App Store

Cursor AI's Support Bot Hallucination Leads to User Cancellations

The company resolved a logout bug and implemented AI-response labeling after its bot invented a false login policy, raising concerns about automation risks.

Image

Overview

  • Cursor AI's support bot falsely claimed a non-existent login policy, causing user confusion and dissatisfaction.
  • The company identified and fixed a race condition bug that triggered session logouts on slow connections.
  • Co-founder Michael Truell publicly apologized, clarified the policy error, and announced refunds for affected users.
  • Cursor now labels all AI-generated support responses to enhance transparency and rebuild user trust.
  • Experts warn that AI hallucinations, like incidents at Air Canada and Klarna, pose challenges to fully automating customer support.