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Glossary term

Hallucination

When an AI model states something false or invented as if it were fact.

In depth

What it really means

A hallucination is when an AI model produces confident, plausible-sounding information that is simply wrong: a fake statistic, a misattributed quote, a product feature you don’t have. It happens because the model predicts likely text, not verified truth.

For brands, hallucinations are a risk and an opportunity. Wrong claims about you can spread, but clear, accurate, retrievable content reduces the chance a model invents something in the gap.

Best practices

FAQs

What is an AI hallucination?

When a model states something false or invented as if it were fact, because it predicts plausible text rather than verified truth.

Why do LLMs hallucinate?

They generate likely-sounding language, and when they lack grounded information they can fill the gap with confident but wrong details.

Can hallucinations hurt my brand?

Yes. A model can state wrong facts about your product, so clear, accurate, retrievable content is your best defence.

How are hallucinations reduced?

Grounding answers in retrieved sources, like RAG, gives the model real facts and cuts down invention.

What if an AI says something wrong about us?

Fix the underlying information where you can, publish clear correct facts, and monitor how assistants describe you.

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