What is a Factual Inaccuracy AI Hallucination?

A Factual Inaccuracy AI Hallucination is when an artificial intelligence model generates and presents incorrect or fabricated information as if it were a verifiable fact. Factual Inaccuracies are one type of AI Hallucination.

• Chance of Occurrence: Common (varies significantly by model and domain)
• Consequences: Misinformation, incorrect decision-making (e.g., financial, medical), and erosion of trust in AI’s reliability.
• Mitigation Steps: Implement Retrieval-Augmented Generation (RAG) to ground responses in external, verified knowledge bases; regular model updates with fresh, verified data; rigorous factual validation in post-processing