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Aren’t those citations sometimes entirely made up? Like the lawyers who used it for a case and it cited ones that never happened?

I really do think hallucinated references are a thing of the past. Models will still make things up, but they won't make up references.

ChatGPT with web search does a good job of summarizing content.

No, ChatGPT has had a web search tool for paid users forever. It actually searches the web and you can click on the links