I've yet to find an "AI" that doesn't seamlessly hallucinate, and I don't see how "AIs" that hallucinate will ever be useful outside niche applications.
Confabulations are decreasing with newer models. I tested confabulations based on provided documents (relevant for RAG) here: https://github.com/lechmazur/confabulations/.
Note the significant difference between GPT-4 Turbo and GPT-4o.