Glossary
Hallucination
When a language model generates confident, fluent output that is factually wrong or unsupported by its source material.
Also called: AI hallucination, confabulation
Hallucination is the term for a language model producing output that sounds plausible and is stated with confidence but is factually incorrect, internally inconsistent, or not actually supported by the documents it was given. It can range from a fabricated statistic to an invented citation or a plausible-sounding but nonexistent API method.
It happens because a large language model is trained to predict likely continuations of text, not to verify facts; when it lacks reliable information on a topic, it still generates a statistically plausible answer rather than saying it does not know. retrieval-augmented generation reduces this by grounding answers in retrieved source text, but does not eliminate it: a model can still ignore, misquote, or extrapolate beyond what was retrieved.
Hallucination matters because it undermines trust in any system that presents LLM output as fact, particularly in regulated or high-stakes domains. Practitioners mitigate it with retrieval grounding, structured prompts that ask the model to cite sources, guardrails that check outputs against source text, and LLM evaluation pipelines, including LLM-as-a-judge checks, that specifically measure factual accuracy rather than fluency.
Last reviewed September 22, 2026