IT encyclopedia · Other questions

Why does AI sometimes get things wrong, or "hallucinate"?

Short answer

A language model produces the most plausible answer rather than checking facts, so it sometimes confidently makes up incorrect information — this is called a hallucination. The risk drops when AI answers based on your documents (RAG), cites sources in its answers and, where it matters, the result is checked by the system or a person.

Why it happens

A large language model is trained to continue text plausibly. If it lacks information, it will still write an answer that sounds right. This happens especially with:

  • exact figures, dates and quotes;
  • narrow questions about a specific company;
  • the latest information that isn’t in the model’s training data.

How to reduce errors in company solutions

  • Give it sources — with RAG AI answers from your documents, not “from memory”.
  • Ask it to cite the source — then a person can check quickly.
  • Structured checks — for example, an invoice amount is compared with the order in the system.
  • Let AI say “I don’t know” — the instructions allow and even require it.
  • A person for important decisions — payments, contracts, answers with legal consequences.

Does this mean AI can’t be trusted?

No — it means AI should be used as a powerful assistant with controls. In a well-built system, AI does most of the work and a person checks only the unclear cases.

Our service AI solutions and AI agents AI that reads documents, answers questions and handles routine work.

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