Safety & Risk

AI Hallucination

When an AI model generates information that appears plausible but is factually incorrect, fabricated, or unsupported by its input data.

Full Definition

An AI hallucination occurs when a language model produces outputs that sound confident and coherent but contain fabricated facts, non-existent citations, incorrect statistics, or logical inconsistencies. Hallucinations arise because LLMs generate text probabilistically based on patterns in training data rather than from a verified knowledge base. In autonomous agent systems, hallucinations are particularly dangerous because agents may act on fabricated information — executing trades based on non-existent market data, citing fictional legal precedents, or providing incorrect medical guidance. Detection techniques include semantic consistency checking, token probability analysis, cross-reference validation, and multi-agent debate.