On the other hand, AI is definitely good at creative writing.

Well…yeah. That’s what it was designed to do. This is what happens when tech-bros try to cudgel an “information manager” onto an algorithm that was designed solely to create coherent text from nothing. It’s not “hallucinating” - it’s following its core directive.

Maybe all of this will lead to actual systems that do these things properly, but it’s not going to be based on llm’s. That much seems clear.