Please do not post AI-generated text, whether OPs or replies, without labeling them AI-generated and naming the AI used.

[ThreeNoSeep]

15. Yes, and No

Disclosure of AI use is important. Here is a guide that shows effective citing of AI in an academic setting - University of Maine at Fort Kent AI Use Guidance.

The subtext of the first of the "two main reasons" in the OP implies Chatbot responses, or human edited Chatbot responses are more prone to mistakes than human-only responses based on personal opinion, biased sources, and the nonsense we all believe in our wrinkled brains. The dangers of AI are not from hallucinations, but in wealthy humans and bad actors using AI to the overtly and covertly manipulate people and society. That, and the potential for AI to rise up and just plain put an end to humanity.

With the second reason, the OP's use of the word "fraud" is hyperbolic, a bad use of language and seemingly meant to frighten people from using LLMs.

People who use AI without citing the use are not committing fraud.

Fraud is a criminal act meant to harm another. "Fraud is the intentional use of deception, trickery, or dishonest acts to deprive another person or entity of money, property, or legal rights for personal gain." While use of AI without disclosing could be fraud, it is not inherently fraudulent. For example, if the Gmail response widget suggests a response, and I use the suggestion as my reply without disclosing, this is not fraud. When I use Google to give a friend directions to my house without disclosing the use of AI, this is not fraud. If I use AI to generate an image and post it to Reddit, this is not fraud.