Glossary

What Is an AI Hallucination? Definition and Example

What Is an AI Hallucination? Definition and Example
Definition

An AI hallucination is a confident answer from an AI that is not true, such as a made-up fact, number, quote or source.

What it means

Hallucinations happen because language models predict plausible text rather than check facts. They are more likely with obscure topics, precise numbers and requests for sources. You can reduce them by supplying the source document, asking for citations and saying 'tell me if you are unsure'.

Example

An assistant cites a research paper that does not exist. Opening the link or searching for the title shows it was invented.

Why it matters

Verifying AI output protects you from errors, especially in finance, health, legal and work documents.

  • Large Language Model (LLM): A large language model, or LLM, is an AI system trained on huge amounts of text to understand and generate.
  • Retrieval-Augmented Generation (RAG): Retrieval-augmented generation, or RAG, is a method where an AI first retrieves relevant documents and then.
  • Prompt: A prompt is the instruction or question you give an AI tool. A clear prompt states the role, the context, the.
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Education only. This glossary is general information, not financial, legal or career advice.

Frequently asked questions

Can hallucinations be eliminated?

Not fully. They can be reduced with good prompts, source documents and checking.

How do I spot one?

Check names, numbers, dates, quotes and links against a reliable source.

Do all AI tools hallucinate?

Any tool that generates text can. Tools that show sources make checking easier.