Glossary · Artificial intelligence

What is an AI hallucination?

When an AI confidently states something that is false.

Hallucination · made-up answer

A hallucination is when a model generates false or invented information, presented convincingly. The model predicts plausible text, with no guarantee of truth.

Why it matters

It is the main risk of naive AI use in business. You cut it sharply by grounding the AI in your data (RAG), asking for sources and keeping human validation on sensitive topics.

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