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Businesses Face Growing Problem of AI Chatbots Misstating Company Facts

ESBO Ltd, a digital PR agency, says monthly monitoring of AI assistants' answers about client brands since early 2025 has revealed five recurring error types: outdated facts, confusion with similarly named companies, misclassifying a company's industry, amplifying old complaints, and other gaps. The agency points to a BBC review finding that over half of chatbot answers about news contained significant issues, including one that kept a former UK prime minister listed as in office long after he left.