a filling in of gaps in memory through the creation of false memories by an individual who is affected with a memory disorder (as Korsakoff syndrome) and is unaware that the fabricated memories are inaccurate and false
vs.
a sensory perception (such as a visual image or a sound) that occurs in the absence of an actual external stimulus and usually arises from neurological disturbance (such as that associated with delirium tremens, schizophrenia, Parkinson's disease, or narcolepsy) or in response to drugs (such as LSD or phencyclidine)
Confabulation is also a symptom very prevalent in forms of narcissism and psychopathy. Gaps in understanding or perception are back-filled by confabulating so as to not risk the omnipotence of the confabulator.
Up to the reader to decide whether this phenomenon is found in the statements of AI leadership or not.
So call them confabulations