Has anyone experience AI creating a new word?

In conversation with creating detailed granular data. It replied with “allowing for more granified management” Knowing this was not a word. I asked if “granified” was a word. and it’s “No, “granified” is not a recognized word in standard English dictionaries. It appears to be a typographical error or a misuse. The intended word might be “granular,” which means detailed or broken down into small, distinct parts. In the context of data or project management, “granular” is often used to describe very detailed and specific information or processes.”

I just got a response that included that word “granified” in a statement similar to yours i.e. “granified” control over data…