It's marketing-speak and corporate buzzwords to cover for the fact that their LLMs often produced wrong information because they aren't capable of understanding your request, nuance, or the training data it used is wrong, or the model just plain sucks.
Would we tolerate such doublespeak it were anything else? "Well, you ordered a side of fries with your burger but because our wait staff made a mistake...sorry, hallucinated, they brought you a peanut butter sandwich that's growing mold instead."
It gets more concerning when the stakes are raised. When LLMs (inevitably) start getting used in more important contexts, like healthcare. "I know your file says you're allergic to penicillin and you repeated when talking to our ai-doctor but it hallucinated that you weren't."