I'd argue that there is an element of intent or agency involved. When a human makes things up intentionally or by choice, that is lying. When they do it unintentionally, that is not lying. It is usually called confabulation (or, honest lying - where the actor does not know they are not telling the truth). I don't think AIs/LLMs have agency or the ability to make things up intentionally. They are just doing what they are programmed to do and everything they produce looks the same to them. It is all true as far as the LLM is concerned. They might be confabulating, but I don't think they are lying.