Hallucination
Also known as: AI confabulation, False generation
When an AI model generates false information that sounds plausible but is completely made up. AI hallucinations are a serious concern for business applications.
Context
AI hallucinations are a serious concern for business applications. ChatGPT might invent statistics, create fake citations, or attribute quotes to people who never said them. This is why you can't blindly trust AI-generated content—fact-checking is essential. Hallucinations happen more often when AI is asked about niche topics, recent events, or specific data it wasn't trained on. Strategies to reduce hallucinations include better prompts, providing context, and using RAG systems that ground AI responses in verified data.
Examples
- 1ChatGPT inventing nonexistent research studies with realistic-sounding names
- 2AI confidently stating incorrect product specifications
- 3Chatbots making up company policies that don't exist
Implementing Agents
AI agents that implement or utilize Hallucination: