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Hallucination

What does it mean?

A hallucination is an AI model's answer that sounds plausible but is factually incorrect or made up. Because a language model predicts language patterns rather than looking up facts, it can confidently state something untrue. Source citations, RAG and human review significantly reduce this risk.

Hallucinations are not a 'bug' you fully program away, but a property of how language models work. You manage them: have the model answer based on your sources (RAG), show the sources, and make sure employees know where human review is needed.

AI literacy plays a key role here: those who understand how a model reaches an answer recognise when a check is needed. That is exactly what our training instils.

From concept to application?

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