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New research reveals a significant security risk stemming from AI-generated code: a propensity for ‘hallucinations,’ where the AI produces inaccurate or fabricated code elements. This flaw creates vulnerabilities that can be exploited through ‘package confusion’ attacks. In these attacks, systems are deceived into accessing malicious code repositories instead of authentic ones, potentially compromising software integrity. The findings underscore the urgent need to improve the reliability and security of AI tools used in software development to prevent malicious exploitation.