AI Hallucination

Definition

An output in which a large language model states something false with full confidence — citing a capability the product doesn't have, a price a competitor doesn't charge, or a source that doesn't exist. In presales the liability lands on the SE, not the AI, which is why trustworthy systems trace every claim to a source document, attach confidence scores, and route uncertain answers to human review rather than improvising.

Confident and wrong is the dangerous combination

A model that hedged visibly would be manageable. The failure mode that causes damage is fluent, specific, plausible output — a capability you do not have, a competitor price that is not real, a standard you are not certified against. Nothing in the text signals that it was invented, which is why review has to be structural rather than left to whoever notices.

The mitigations that actually help

Ground every claim in a retrievable source document and show the citation. Attach a confidence rating so low-grounding answers are visible. Route uncertain output to a human by default rather than on request. None of this eliminates the failure mode; it makes the failures cheap to catch before they reach a prospect.

The SE carries the consequence

An invented claim in an RFP answer is a vendor statement, not a software bug. That asymmetry is the whole argument for citations and human review.

Related terms

Further reading

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