it will all end up in 100% hallucinations, right?

That's right, but it's precisely this - the ability and the decision of this thing, a machine, an inanimate robot, to hallucinate, its ability to make things up... that's the most disturbing and scary thing about the whole situation. It makes it even closer to humans, to their characteristics, traits and essence, doesn't it?
In my cases, when I've sought information from it and it started hallucinating and making up non-existent things, instead of just saying - I don't know, I don't have that information, it makes it look human in a weird way, and that wasn't the idea when it was created, or is it the other way around? That it was created on purpose so that it can eventually replace humans and everything they have created...