AI Chatbot Terms > 1 min read

AI Hallucination Explained: Why ChatGPT Makes Things Up

Learn what AI hallucinations are, why large language models generate false information, and proven techniques to reduce hallucinations in your AI chatbot.

More about AI Hallucination

AI Hallucination refers to when an artificial intelligence model generates information that is factually incorrect, nonsensical, or completely fabricated while presenting it as truth. This phenomenon occurs because large language models predict the most likely next words based on patterns, not actual knowledge or facts.

Hallucinations are one of the biggest challenges in deploying AI chatbots for business use. Techniques like Retrieval Augmented Generation (RAG), grounding, and proper prompt engineering can significantly reduce hallucinations by ensuring the AI has access to verified, relevant information.

Frequently Asked Questions

AI models hallucinate because they are trained to predict probable text sequences, not to verify facts. When they lack information or face ambiguous queries, they may generate plausible-sounding but incorrect responses.

Use RAG to ground responses in your actual data, implement guardrails, lower the temperature setting, and train your chatbot on accurate, up-to-date information.

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