By applied logic that consciousness is a type of illusion or hallucination , yes AI can have a consciousness or hallucination. Question is if we can call it consciousness ? I don't think so , rather I would call it hallucination.
First you have to define consciousness without a circular definition. What hypothesis can you use to test for consciousness?
I played around with this kind of thing a while back - it can be very weird to see what looks like inner dialog from a bot: https://youtu.be/4oQUsiPsbOQ