What Is...
Governance Concept
What Is AI Hallucination?
Hallucination is when an AI model generates factually incorrect or fabricated content presented with the same confidence as accurate content. It is not a bug — it is a fundamental characteristic of how large language models work.
High-risk hallucination contexts
Legal
Fabricated case citations and non-existent statutory provisions — already resulted in court sanctions.
Medical
Fabricated clinical evidence and drug interactions — life-critical verification required.
Financial
Fabricated market data, research, and analyst reports — regulatory and fiduciary exposure.
Regulatory
Fabricated regulatory references in submissions — serious compliance and credibility risk.