Glossary · Privacy & data
Hallucination
Also said as
AI making things upmade-up answersconfident wrong answers
A hallucination is when AI makes something up and states it with total confidence — a fake statistic, a wrong price, a court case that doesn't exist.
Why it matters to your business
Measured rates run from about 9% when the AI summarizes a document you hand it to 47% on facts from memory — a coin flip between a right answer and a confident invention.
The catch · what vendors don't say
A hallucinated answer reads exactly like a correct one — tone gives you no signal, which is why anything checkable gets checked before it reaches a customer.
