Hallucination
A hallucination occurs when an AI model produces confident but false or fabricated information. It can happen due to incomplete training data or ambiguous prompts. Mitigation methods include RAG, context engineering, and human verification loops. Hallucination control is one of the key challenges for deploying GenAI in business.
Want the full picture? This term comes from GenAI for Business, a complete free book on generative AI strategy and implementation by Prof. Shubin Yu (HEC Paris).