Firm apologizes after AI assist agent invents coverage that causes consumer uproar

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On Monday, a developer utilizing the favored AI-powered code editor Cursor seen one thing unusual: Switching between machines immediately logged them out, breaking a typical workflow for programmers who use a number of gadgets. When the consumer contacted Cursor assist, an agent named “Sam” informed them it was anticipated conduct underneath a brand new coverage. However no such coverage existed, and Sam was a bot. The AI mannequin made the coverage up, sparking a wave of complaints and cancellation threats documented on Hacker Information and Reddit.

This marks the newest occasion of AI confabulations (additionally referred to as “hallucinations”) inflicting potential enterprise harm. Confabulations are a kind of “inventive gap-filling” response the place AI fashions invent plausible-sounding however false data. As a substitute of admitting uncertainty, AI fashions usually prioritize creating believable, assured responses, even when which means manufacturing data from scratch.

For firms deploying these methods in customer-facing roles with out human oversight, the implications might be instant and dear: annoyed clients, broken belief, and, in Cursor’s case, doubtlessly canceled subscriptions.

The way it unfolded

The incident started when a Reddit consumer named BrokenToasterOven seen that whereas swapping between a desktop, laptop computer, and a distant dev field, Cursor periods have been unexpectedly terminated.

“Logging into Cursor on one machine instantly invalidates the session on another machine,” BrokenToasterOven wrote in a message that was later deleted by r/cursor moderators. “It is a vital UX regression.”

Confused and annoyed, the consumer wrote an e-mail to Cursor assist and rapidly acquired a reply from Sam: “Cursor is designed to work with one system per subscription as a core safety function,” learn the e-mail reply. The response sounded definitive and official, and the consumer didn’t suspect that Sam was not human.

Screenshot: "Cursor is designed to work with one device per subscription as a core security feature. To use Cursor on both your work and home machines, you'll need a separate subscription for each device. Let me know if you need help setting up an additional subscription! Best, Sam."
Screenshot of an e-mail from the Cursor assist bot named Sam.


Credit score:

BrokenToasterOven / Reddit


After the preliminary Reddit put up, customers took the put up as official affirmation of an precise coverage change—one which broke habits important to many programmers’ every day routines. “Multi-device workflows are desk stakes for devs,” wrote one consumer.

Shortly afterward, a number of customers publicly introduced their subscription cancellations on Reddit, citing the non-existent coverage as their motive. “I actually simply cancelled my sub,” wrote the unique Reddit poster, including that their office was now “purging it fully.” Others joined in: “Yep, I am canceling as nicely, that is asinine.” Quickly after, moderators locked the Reddit thread and eliminated the unique put up.