1. Understanding generative AI
Hallucination: confidently wrong answers
A "hallucination" is when an AI tool generates something that sounds entirely plausible and is stated with total confidence, but is factually wrong or entirely made up: a fabricated legal case, a citation to a report that doesn't exist, a quote nobody said, a statistic invented on the spot.
Why this happens
The model is generating the next most plausible piece of text, not retrieving a verified fact from a database. If a real answer isn't well represented in what it learned, it will often still generate something that reads like a confident, correct answer, because that's what the pattern of a confident, correct answer looks like.
What this means for you
Never submit AI-generated facts, figures, citations, or quotes into anything that matters, a client document, a legal filing, a report, without independently verifying them first. The tool's tone of confidence tells you nothing about whether it's actually correct.
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Understanding generative AI
Data and confidentiality
Accuracy, bias and accountability
Using AI well at work