We tend to think of AI “hallucinations” as glitches, moments where the system veers off course into fantasy. But what if these fabrications hold a hidden value? New research suggests that these instances, better termed “confabulations,” might actually be a sign of something positive: a nascent form of storytelling. The study delves into the narrative structures within AI-generated text, finding that so-called hallucinations often exhibit richer narratives and greater coherence than their factual counterparts. This isn't to say that accuracy isn't important. But it does challenge the prevailing notion that all factual inaccuracies are bad. The researchers draw parallels to how humans use storytelling—not just for entertainment, but to make sense of the world, to fill in gaps in our understanding, and to create compelling narratives that resonate. This narrative impulse, present in both humans and AI, can be seen as a cognitive tool for building coherent and engaging communication. While the research primarily focuses on dialogue benchmarks, it opens up exciting new avenues for thinking about AI and creativity. Could these confabulations be harnessed to enhance AI’s storytelling abilities? Could they be used to create more immersive and engaging experiences in fields like gaming, education, or even therapeutic interventions? The study raises as many questions as it answers, but it offers a compelling new perspective on the potential of AI—not just as a source of facts, but as a powerful tool for shaping narrative and meaning.