AI Instantiate targets/prefab. (pick target issue)

Ok so this time I have my AI instantiate an empty GameObject(prefab) at the hit point of one of the rays and then make that its target to follow/go towards.

The problem is that it doesn't select the prefabbed instantiated target but rather the original in he middle of the scene.

So yeah what do I need to do in order get it to pick the target which the AI insantiates.

Code:

 // This is whatever the AI targets.
 
 public Transform target;
 // This is the prefabbed target object that is instantiated.
 
 public Transform targetDummy;
 
 
 
 //and this where the magic is supposed to happen lol.
 
 if(Physics.Raycast(headdummyBone.position, fwd, out hit, maxDist, ignoreLayers)){
 
    if(startWandering == true && dummyTarget01Set == false){
 
       Instantiate(targetDummy, hit.point, transform.rotation);
 
 //this is where the target is set.
 target = targetDummy.transform;
 
 
 dummyTarget01Set = true;
 
 
 
 }
 
 
 
 
 
 }