AI Glossary · Foundations
Hallucination
A fluent but incorrect or fabricated model output. Mitigated with grounding, retrieval, tool use, evals and human oversight.
Definition
What is Hallucination?
Hallucination is a fluent but incorrect or fabricated model output. Mitigated with grounding, retrieval, tool use, evals and human oversight.
- Category
- Foundations
- Glossary set
- 28 related terms
- Audience
- Enterprise AI leaders
Why does Hallucination matter in enterprise AI?
Hallucination matters in enterprise AI programs because it helps business and technology leaders align vocabulary, scope, ownership, and measurable outcomes.
Related terms in Foundations
- Alignment
- The discipline of making an AI system's behavior match human intent, values and organizational policy — both at training time and at runtime.
- Artificial Intelligence (AI)
- Software systems that perform tasks normally requiring human intelligence — perception, reasoning, language, decision-making — by learning patterns from data.
- Artificial General Intelligence (AGI)
- A hypothetical AI capable of performing any intellectual task a human can, across domains. Not a shipping product category today; treat vendor claims with scrutiny.
- Benchmark
- A standardized task suite (e.g., MMLU, GSM8K, HELM) used to compare model quality on reasoning, coding, safety or domain knowledge.
- Chain-of-Thought (CoT)
- A prompting or training pattern where a model produces intermediate reasoning steps before its final answer, improving accuracy on math, planning and multi-hop tasks.
- Classification
- A supervised learning task that assigns inputs to discrete categories (spam vs. not spam, churn risk tier). The workhorse of predictive AI.