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AI Glossary

AI Hallucination

An AI hallucination is when a model produces confident but false or fabricated information — inventing facts, sources or details that aren't real. It happens because LLMs predict plausible text rather than retrieve verified truth, and it's the main risk to manage in production AI.

Last updated: June 2026

Hallucination is the number-one reason businesses hesitate to deploy AI — and it's manageable. Grounding answers in your data with RAG, citing sources, adding evaluations and setting confidence thresholds dramatically reduce it.

Every system we ship includes safeguards against hallucination so your AI stays trustworthy in front of customers.

Related terms
Retrieval-Augmented Generation (RAG)AI GovernanceLarge Language Model (LLM)
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