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AI hallucination

What Is an AI Hallucination?

In short

An AI hallucination is when a generative AI model produces false, nonsensical, or factually incorrect information but presents it as if it were true. The concept of "hallucination" helps us name and understand a critical flaw in generative AI, where models create plausible-sounding but completely fabricated output. This is a significant business risk, as it can mislead employees and customers, damage brand reputation, and lead to poor decision-making.

Updated 16 September 20262 min read

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