Agents & knowledge
Hallucination
Confidently generated content that is unsupported or false.
Definition
A hallucination occurs when an AI system invents facts, sources, quotations, calculations or relationships not justified by available evidence.
Why it matters
In banking, even a low average hallucination rate can be unacceptable when errors affect customers, markets, law or controls.
Related concepts
- Citation correctness
Whether a cited source genuinely supports the associated claim.
- Grounding
Connecting an output to supplied, authoritative evidence.
- Critical-error rate
The share of cases containing a failure with severe consequences.