ChatGPT will keep 'hallucinating' wrong answers for years to come and won't take off until it's on your cellphone, Morgan Stanley says

• ChatGPT will keep giving occasional wrong answers for a couple of years, according to Morgan Stanley. 
• The AI bot sometimes "hallucinates," meaning it generates responses that are seemingly convincing, but are actually wrong, according to the bank.
• ChatGPT's and AI's way forward is to run the technology on edge devices, including mobile phones, Morgan Stanley said.

ChatGPT will continue to "hallucinate" wrong answers occasionally for years to come and won't take off until it's on your cellphone, according to Morgan Stanley. 

In a note dated Wednesday, the US investment bank highlighted the AI chatbot's shortcomings, saying it occasionally makes up facts. "When we talk of high-accuracy task, it is worth mentioning that ChatGPT sometimes hallucinates and can generate answers that are seemingly convincing, but are actually wrong," Morgan Stanley analysts led by Shawn Kim wrote.