Hallucinations reduce the success rate of AI workflows, which must be taken seriously. Imagine a workflow with 8 steps where each step/agent has a 95% success rate, the success rate of this workflow is only (1-0.05)^8 = 0.66 ~= 66%. Not bad but not enough to replace humans yet (unless 66% makes you profitable).

The hallucinations/errors compound and can misguide decisions if you rely too much on AI.