Think AI hallucinations are bad? Here's why you're wrong

AI hallucinations can be frustrating. If you’ve used an LLM, you’ve almost certainly seen it deliver an answer that was either confidently wrong or just downright mistaken.

I recently ran into a hallucination while using an LLM for competitive intelligence. I run a market research software platform that delivers consumer insights on ads and products to consumer brands.

But when I asked the model to assess our customer reviews, it confidently concluded we were underperforming due to failures in our “electricity structure systems.” At first glance – “huh?!” But it became clear the model had conflated us with an unrelated company that shares our name and makes EV chargers.