What are AI Hallucinations?
SMRTR summary
AI hallucinations occur when AI models generate confident but completely false or made-up information, and they are not rare glitches but a core feature of how these systems work. Real-world consequences have been severe, including Google losing $100 billion in market value after a factual error and courts sanctioning lawyers for submitting AI-invented legal citations. Newer models can actually hallucinate more, making human oversight and rigorous testing essential for safe AI deployment.
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