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An AI-generated article on the Tasmania Tours website falsely advertised non-existent "Weldborough Hot Springs" in a remote Tasmanian town.
The now-deleted post, published last July, described the fictional springs as a "peaceful escape" with "therapeutic minerals" and included AI-generated images.
Tourists, misled by the article, travelled to Weldborough “in droves”, one local hotel said, only to discover that no such hot springs existed.
Scott Hennessy, owner of Australian Tours and Cruises, which operates Tasmania Tours, admitted their AI "messed up completely" and blamed a third-party contractor for the error.
The company saidd that the incident, caused by an AI "hallucination" producing fabricated information, resulted in significant reputational damage and online backlash.
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