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What is an AI Hallucination?

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Engineering Notes · AI Systems

Analysts warn that AI hallucination remains the biggest barrier to deploying chatbots in medicine and law.

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An AI hallucination is output from a generative model that is fluent and confidently stated but factually incorrect or fabricated, arising because language models optimize for statistical plausibility of text rather than factual verification. Mitigations include retrieval grounding, citation requirements, reduced sampling temperature, and human review; no current technique eliminates the phenomenon entirely.

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