Microsoft’s latest holiday ad for its Copilot AI assistant features a 30-second montage of users seamlessly syncing smart home lights to music, scaling recipes for large gatherings, and parsing HOA guidelines — none of which the software can actually perform reliably when put to the test. The Verge methodically tested each prompt shown in the ad and found that Copilot repeatedly hallucinated interface elements that didn’t exist, claimed to highlight on-screen buttons when…

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