Unfortunately, ChatGPT doesn't have a good search interface, so I can't search through older chats, but I know when I was looking at re-naming our company, it didn't come up with our new name, but it lead me down a path which did lead to our name.
I was trying to understand a patent, and we were looking at the algorithm which was being used. ChatGPT misunderstood how the algorithm worked, but pointed to it's knowledge of a similar algorithm which worked differently, but was better suited to our purposes.
Calling this "free-association" may be taking some liberty. Many people would consider these errors, or hallucinations, but in some ways, they do look very similar to what many would call free-association IMO.
I assume free but not random association could be a comparable support for ideation in research.
Hallucinations are inaccuracies it doesn't realize are inaccurate.