Guide

What Are AI Hallucinations?

An AI hallucination is generated content that fabricates details, contradicts supplied evidence, or extends beyond what the available evidence supports. But not every wrong or unverifiable answer is a hallucination: retrieval errors, bad sources, citation failures, and failures to abstain are distinct problems that require different controls.

Written by Ziqqur

At a glance

What is an AI hallucination?

Generated content that invents details, contradicts supplied evidence, or goes beyond what the available evidence supports.

Is every wrong AI answer a hallucination?

No. Some wrong answers come from bad sources, stale retrieval, classification errors, or other system failures.

Why do language models hallucinate?

They are trained to generate likely continuations, not to independently verify every claim. Data gaps, uncertainty, prompting, retrieval, and evaluation incentives also matter.

Are fake citations hallucinations?

Often yes, but citation failure has several forms: nonexistent sources, corrupted metadata, mismatched claims, partial support, or citations detached from the actual answer process.

Does RAG prevent hallucinations?

No. RAG can supply evidence, but retrieval, source quality, context selection, and generation can still fail.

Can knowledge graphs prevent hallucinations?

No. They can make entities and relationships explicit, but the graph may still be incomplete, stale, or wrong.

Can hallucinations be eliminated?

Not reliably in all open-ended settings. Risk can be reduced through better evidence, evaluation, verification, and abstention.

Why does abstention matter?

A system can choose not to guess when evidence is insufficient.

Consider three answers.

Example 1 — Fabricated legal case

An AI assistant cites a court case that does not exist.

Example 2 — Real citation, wrong support

The cited paper exists, but it does not support the claim attached to it.

Example 3 — Stale policy retrieval

The model faithfully summarizes an old policy version retrieved by the system.

All three answers may be wrong, but they are not the same failure.

The first is a classic hallucination. The second is a citation and attribution failure. The third may be a retrieval or data-freshness failure rather than model fabrication.

The word hallucination is often used for all of them.

That broad usage can be understandable in casual conversation, but it is not enough for diagnosing a production system.

Model fabrication

Input

No supporting source

Behavior

Model invents a legal case

Visible answer

Fluent, specific, false

Unsupported generation

Retrieval error

Input

Current policy exists

Behavior

Retriever selects old policy

Visible answer

Faithful summary of stale source

Wrong evidence selected

Bad source

Input

Source itself contains an error

Behavior

Model repeats source accurately

Visible answer

Grounded but false

Source-quality failure

Citation mismatch

Input

Real paper

Behavior

Citation attached to unsupported claim

Visible answer

Looks verified

Attribution failure

Failure to abstain

Input

Evidence missing or conflicting

Behavior

System answers anyway

Visible answer

Overconfident guess

Decision-policy failure

Same visible outcome. Different failure source. Different control.

Several failures can produce a wrong AI answer. The correct control depends on where the failure entered the system.

Foundations

What Is an AI Hallucination?

An AI hallucination is generated content that invents details, contradicts the evidence supplied to the system, or adds claims that the available evidence does not support. That is the practical AI hallucination definition used throughout this guide.

The term is most often used for generative AI systems, especially language models.

Examples include a nonexistent legal case, a fabricated academic citation, an invented quotation, a made-up date or policy number, a summary that contradicts the source, or an answer that adds unsupported details.

Research definitions vary across tasks, source conditions, and research traditions.1,2

In natural-language generation, hallucination has often been studied relative to three related properties:

  • faithfulness — whether output is consistent with the supplied source;
  • factuality — whether output agrees with an external reference or accepted fact;
  • groundedness — whether the claim is supported by the context or evidence made available to the system.

These are related but not identical.

A response can be faithful to a false source.

It can be factually correct but unsupported by the supplied context.

It can cite a real source that does not support the claim.

That is why a useful hallucination definition must distinguish truth, support, attribution, and system behavior.

Scope

Is Every AI Error a Hallucination?

No.

A hallucination is one kind of AI failure.

Other failures include a classifier producing a false positive, a forecasting model making a bad prediction, a retriever returning the wrong document, a database containing stale information, a source containing an error, a tool call using the wrong parameter, a policy engine applying the wrong rule, or a correct answer that cannot be verified.

Calling every failure a hallucination makes the system harder to debug.

A model that invents a case name needs a different control from a retriever that selects the wrong policy version.

The visible answer may look equally wrong, but the corrective action is different.

Taxonomy

The Three Core Forms of Hallucination

A practical definition can be organized into three core forms.

1. Fabrication

The system invents an entity, event, relationship, quotation, source, citation, or detail.

Examples include a nonexistent legal case, a paper with invented authors, a fake URL, a fabricated customer incident, or a quotation no source contains.

Fabrication is the clearest form of hallucination.

2. Contradiction

The generated output conflicts with the evidence or source context supplied to the model.

For example, the source says:

Policy 3.2 applies only to critical services.

The model says:

Policy 3.2 applies to every service.

This kind of source inconsistency has been studied directly in abstractive summarization, where human evaluation found substantial unfaithful content in generated summaries.3

Some literature calls this intrinsic hallucination.

Terminology varies, so the article should focus on the operational distinction rather than treating one label as universal.

3. Unsupported Completion

The output adds information that the available evidence does not support.

Suppose the source says:

Team Atlas owns Service Alpha.

The model answers:

Team Atlas owns Service Alpha and approved the latest deployment.

The second claim may be true or false.

The problem is that the supplied evidence does not support it.

Some literature calls this extrinsic hallucination.

Again, terminology varies by task.

Fabrication

The model invents an entity, event, citation, quotation, or detail.

Example: “Case 18-742 established the rule.” No such case exists.

Contradiction

The answer conflicts with the supplied source.

Source: Policy 3.2 applies only to critical services.

Answer: Policy 3.2 applies to all services.

Unsupported completion

The answer adds a claim beyond the available evidence.

Source: Team Atlas owns Service Alpha.

Answer: Team Atlas owns Service Alpha and approved the deployment.

The core forms of hallucination are fabrication, contradiction, and unsupported completion.

Diagnosis

Adjacent Failures Often Mislabeled as Hallucinations

Several failures are frequently grouped under hallucination even though the root cause is different.

Retrieval-Induced Error

The retriever supplies:

  • an irrelevant document;
  • an outdated source;
  • an incomplete passage;
  • the wrong tenant’s record;
  • a low-quality source;
  • only one side of a conflict.

The model may then summarize the retrieved material faithfully.

The answer is wrong, but the failure began before generation.

Source-Grounded Error

The source itself is false, stale, or incomplete.

If the model accurately repeats a bad source, the answer is source-grounded but still incorrect.

Grounding is not the same as truth.

Citation Failure

The response may include a nonexistent citation, a real source with fabricated metadata, a real source that does not support the claim, a source that supports only part of the claim, or a citation added after the claim was generated.

Citation presence does not establish citation validity.

Unverifiable Answer

The answer may be correct, but the system cannot provide sufficient evidence.

In high-liability settings, an unverifiable answer may still be unusable.

That is not always a hallucination.

It is a support and provenance problem.

Failure to Abstain

The system answers even when evidence is missing, sources conflict, authorization is insufficient, uncertainty is too high, or the question is unanswerable from the available record.

The answer may then become fabricated or overconfident.

But the earlier failure was the decision to answer at all.

Causes

Why Do Language Models Hallucinate?

There is no single cause.

Hallucinations can arise from several interacting mechanisms.

Predictive Training Objective

Language models are trained to predict likely token continuations.

That objective rewards plausible sequence generation.

It does not independently verify every factual claim.

This helps explain why a model can produce fluent but unsupported text.

Incomplete or Sparse Information

Some facts appear rarely in training data.

Others are arbitrary:

  • a specific birthday;
  • a recent policy version;
  • an internal service owner;
  • a case number;
  • a customer incident ID.

When the model lacks reliable information, it may still generate a plausible continuation.

Conflicting Training Patterns

Training data can contain outdated statements, contradictions, myths, duplicated errors, ambiguous names, and inconsistent terminology.

A model may reproduce those patterns.

TruthfulQA showed that the tested language models frequently reproduced common human misconceptions; in that benchmark, scaling alone did not guarantee greater truthfulness.4

Ambiguous Prompts

A vague request may leave several interpretations open.

The model may select one without making the ambiguity visible.

Instruction Pressure

Prompts often reward completion through instructions such as “Give me the answer,” “Do not say you don’t know,” “Provide five citations,” “Be confident,” or “Never refuse.”

These instructions can increase pressure to guess.

Decoding and Sampling

Different sampling choices can produce different continuations.

Lower randomness may increase repeatability, but it does not make the underlying claim true.

A model can deterministically repeat the same false answer. For the distinction between repeatability and correctness, see What Is Deterministic AI?

Evaluation Incentives

Kalai and colleagues argue that many evaluations reward guessing because an unanswered question receives no credit while a guess has some chance of being correct.5

That creates a gap between:

  • maximizing answer rate;
  • maximizing calibrated reliability.

A system designed for high-liability use may prefer a smaller set of defensible answers over a larger set of guesses.

Architecture

Why the System Around the Model Matters

An AI answer is often produced by more than one component.

A typical system may include source ingestion, retrieval, ranking, filtering, prompt assembly, tools, policy checks, model generation, post-processing, citation attachment, and final formatting.

A failure can enter at any stage.

1Sources

inaccurate source · stale version

2Ingestion

parsing loss · wrong permissions

3Retrieval

retrieval miss · wrong tenant · irrelevant evidence

4Ranking and filtering

current source ranked below stale source · conflict omitted

5Prompt and context assembly

truncation · missing qualifier

6ModelGeneration

fabrication · contradiction · unsupported synthesis

7Tools

wrong parameter · failed lookup

8Citation attachment

unsupported source · fabricated metadata

9Final answer

failure to qualify · failure to abstain

The final answer reflects the entire system. Unsupported output can originate in sources, retrieval, tools, orchestration, or generation.

Attribution

Hallucinated Citations

Citations deserve separate treatment because they create an appearance of verification.

A citation may fail in several ways.

1. Nonexistent Source

The paper, case, URL, or record does not exist.

2. Fabricated Metadata

The source exists, but the model invents or corrupts:

  • title;
  • author;
  • year;
  • journal;
  • court;
  • docket number;
  • URL.

3. Unsupported Attribution

The source exists but does not support the attached claim.

4. Partial Support

The source supports only one part of a broader statement.

5. Detached Citation

The citation is real and relevant, but the system cannot show whether the cited material actually participated in producing the claim.

A citation can make an answer look grounded while hiding a broken attribution chain.

FActScore operationalizes this idea by decomposing long-form generations into atomic facts and measuring the percentage supported by a reliable knowledge source.6

Citation Present vs. Citation Valid

Citation stateWhat it means
Nonexistent citationSource does not exist — invalid
Real source, fabricated metadataAuthor, date, title, URL, or court details are wrong — invalid
Real source, unsupported claimClaim is not supported — invalid
Partial supportSource supports only part of the statement — requires qualification
Valid claim-source relationshipMetadata is correct and the source supports the relevant claim and scope — valid attribution

Independently: was the source actually used in producing the answer? Yes / No / Unknown.

A citation is only useful when it exists, matches the claim, supports the relevant scope, and is connected to the answer process.

Retrieval

Hallucinations in RAG Systems

Retrieval-augmented generation combines parametric generation with retrieved non-parametric information.7

In the original RAG experiments, the approach produced more factual language than a parametric-only baseline on the evaluated generation tasks. That result does not mean retrieval guarantees factual support in every system.7

But RAG changes the failure surface rather than eliminating hallucinations.

A RAG system can fail through retrieval misses, irrelevant or stale documents, duplicate sources, incomplete context, contradictory evidence, context truncation, bad ranking, source poisoning, prompt injection, unsupported synthesis, model disregard of evidence, or citation mismatch.

The model may also combine several individually valid passages into a conclusion that none of them supports.

RAG should therefore be evaluated as a pipeline:

  1. Did the system retrieve the right evidence?
  2. Was the evidence current and authorized?
  3. Did the context include the relevant passage?
  4. Did the answer remain faithful to that passage?
  5. Did the citation support the claim?
  6. Should the system have answered?

For a deeper comparison of graph-based retrieval and conventional RAG architectures, see Knowledge Graph vs. RAG.

Structure

Hallucinations and Knowledge Graphs

Knowledge graphs can make selected entities and relationships explicit.

They can help with identity, multi-hop traversal, source relationships, versions, constraints, and structured retrieval.

But a knowledge graph can still contain incorrect edges, duplicate entities, missed relationships, stale facts, model-generated claims, unresolved conflicts, or incomplete coverage.

A graph query can return an exact path through incorrect data.

A graph can reduce some ambiguity without guaranteeing truth.

For the foundational explanation, see What Is a Knowledge Graph in AI?

Trust boundary

Hallucination, Provenance, and Support

A trustworthy answer needs more than a plausible citation — see What Is Trustworthy AI?

For each consequential claim, a system may need to record:

  • source;
  • source version;
  • supporting passage;
  • retrieval event;
  • graph relationship;
  • tool output;
  • processing step;
  • model or rule version;
  • final claim;
  • unresolved evidence gaps.

Provenance records where information came from and how it moved through a process.

It does not independently establish that the information is true.

For the full framework, see What Is AI Provenance?

System behavior

Why Abstention Matters

A system does not have to choose only between a correct answer and a wrong answer. It can also qualify the answer, ask for more information, request a better source, escalate to a reviewer, or abstain.

Abstention is not automatically the best outcome.

Over-abstention can make a system useless.

The design problem is to balance:

  • answer coverage;
  • error risk;
  • evidence quality;
  • user need;
  • task severity.

Models can show useful self-evaluation and calibration behavior in some tested settings, but the results are format- and task-dependent, and generalization to new tasks remains imperfect.8

Abstention therefore needs explicit testing. A dedicated guide should cover what AI abstention is and how to evaluate it.

Answer

Use when

  • Evidence is sufficient
  • Evidence is consistent
  • Source is authorized and current
  • Risk is acceptable

Qualify

Use when

  • Evidence is useful but incomplete
  • Confidence is limited
  • Uncertainty can be stated accurately

Ask

Use when

  • A missing fact or ambiguity can be resolved by the user
  • The system needs a document, date, jurisdiction, or identifier

Abstain or escalate

Use when

  • Evidence is absent
  • Sources conflict
  • Authorization is insufficient
  • Uncertainty exceeds the allowed threshold
  • The consequence is too high

Abstention is not automatically optimal. The system must balance answer coverage and error risk.

A reliable AI system should not be forced to answer every question. Its behavior should depend on evidence sufficiency and risk.

Measurement

How Are Hallucinations Evaluated?

There is no single universal hallucination score.

Evaluation depends on what kind of failure matters.

Factuality

Does the claim agree with an external reference?

Faithfulness

Does the output remain consistent with the supplied source?

Groundedness

Is the claim supported by the evidence made available to the system?

Attribution

Does the cited source support the claim?

Claim-Level Precision

What proportion of the answer’s factual claims are supported?

FActScore is one example of a claim-level factual precision framework.6

Consistency

Does the model produce similar claims across multiple samples?

SelfCheckGPT uses divergence across sampled responses as a black-box signal for non-factual content.9

That method was evaluated in a specific biographical-generation setting. Consistency is not proof of truth.

Calibration

Does confidence correspond to correctness?

Abstention Behavior

Does the system decline appropriately on unanswerable or insufficiently supported questions?

Because metrics target different properties, one benchmark cannot establish that a system is “hallucination-free.”

Mitigation

What Reduces Hallucination Risk?

At a high level, risk can be reduced through better source quality, source versioning, retrieval, evidence filtering, claim verification, citation validation, constrained generation, tool use, calibration, human review, monitoring, and abstention.

Each control addresses different failures.

Retrieval helps when the model lacks access to relevant information.

Citation validation helps when attribution is unreliable.

Abstention helps when the available evidence is insufficient.

Human review helps when consequences are high and automated checks are incomplete.

The detailed control architecture belongs in How to Reduce AI Hallucinations.

Limits

What Does Not Eliminate Hallucinations?

The following do not eliminate hallucinations by themselves.

A Larger Model

Larger models may perform better, but scale alone does not guarantee truthfulness.4

Lower Temperature

Lower temperature can make output more repeatable.

It can also make the same false answer repeatable.

RAG

RAG provides external evidence but can retrieve the wrong evidence or use it badly.

Knowledge Graphs

Graphs make relationships explicit but can contain wrong or stale statements.

Citations

Citations can be fabricated, mismatched, partial, or detached from answer production.

Chain-of-Thought-Like Explanations

A fluent explanation can rationalize an incorrect result.

Self-Consistency

Repeated agreement across samples can indicate stability, not truth.

Human-Sounding Confidence

Tone is not evidence.

Stakes

Why Hallucinations Matter More in High-Liability Workflows

A fabricated restaurant recommendation is inconvenient.

A fabricated legal case, medical contraindication, compliance rule, financial disclosure, or safety requirement can cause serious harm.

The risk depends on consequence, reversibility, detectability, authorization, time pressure, source sensitivity, and evidence requirements.

High-liability systems should evaluate not only whether an answer is usually correct, but whether unsupported claims can be detected, traced, blocked, or escalated.

Checklist

How to Evaluate a “Hallucination-Resistant” AI System

Ask these questions.

1. What counts as a hallucination?

Does the vendor distinguish fabrication, contradiction, retrieval error, source error, and citation failure?

2. What evidence is available?

Can the system access approved and current sources?

3. How is retrieval evaluated?

Are retrieval misses, stale sources, and wrong versions measured?

4. Are claims checked individually?

Can the system verify claim-level support rather than only answer-level similarity?

5. Are citations validated?

Does the source exist, match the claim, and support the full scope?

6. Is provenance recorded?

Can the system reconstruct what evidence, versions, tools, and processing steps were used?

7. Can the system abstain?

What happens when evidence is missing or conflicting?

8. How is confidence calibrated?

Does expressed confidence track correctness?

9. What happens after deployment?

Are failures monitored, reviewed, and fed back into evaluation?

10. What does the system refuse to claim?

A credible system should state its boundaries.

Frequently asked questions

What is an AI hallucination in simple terms?

An AI hallucination is a generated claim that is invented, contradicts the available evidence, or is not supported by that evidence.

Why do AI systems hallucinate?

Language models generate likely continuations rather than independently verifying each factual claim.

Hallucinations can also be affected by training data, uncertainty, prompting, retrieval, source quality, decoding, and evaluation incentives.

Is every wrong AI answer a hallucination?

No.

A wrong answer may come from bad source data, stale retrieval, a classifier error, a tool failure, or another part of the system.

Why does AI sound confident when it is wrong?

Language models are optimized to produce coherent text.

Fluent style and factual verification are different properties.

Are fake citations hallucinations?

A nonexistent source is a clear hallucination.

A real source that does not support the claim is better described as an attribution or citation failure, though users often group both under hallucination.

Can RAG prevent hallucinations?

No.

RAG can improve access to evidence, but retrieval, source quality, context assembly, and generation can still fail.

Can knowledge graphs prevent hallucinations?

No.

Knowledge graphs can make identities and relationships explicit, but the graph can still be wrong, stale, or incomplete.

Can hallucinations be eliminated?

Not reliably in every open-ended setting.

Their frequency and impact can be reduced through better evidence, evaluation, verification, and abstention.

What is the difference between hallucination and factual error?

A factual error is any incorrect factual claim.

A hallucination is usually generated content that is fabricated, source-inconsistent, or unsupported.

The categories overlap, but they are not identical.

What is abstention in AI?

Abstention is a system decision not to provide a substantive answer when evidence, authorization, confidence, or task conditions are insufficient.

Closing

Conclusion

AI hallucination is often described as “the model making things up.”

That is a useful starting point, but not a complete diagnosis.

A system can produce a wrong answer because the model fabricated a claim, contradicted the evidence, exceeded the evidence, used the wrong retrieved source, repeated a bad source, attached an unsupported citation, or answered when it should have abstained.

Those failures require different controls.

The most important question is not merely:

Does the answer sound correct?

It is:

Which claims are supported, by what evidence, under which version, and what should the system do when support is insufficient?

That is the difference between fluent output and defensible output.

Where Ziqqur fits

Ziqqur’s public position should stay narrower than “we eliminate hallucinations.” The relevant problem is whether consequential claims are linked to approved evidence, current source versions, recorded processing history, and a visible abstention path when support is insufficient.

See how Ziqqur approaches source-traced answers
References
  1. 1.

    Ziwei Ji et al.. Survey of Hallucination in Natural Language Generation. ACM Computing Surveys, 2023; arXiv revised 2024. https://arxiv.org/abs/2202.03629

  2. 2.

    Lei Huang et al.. A Survey on Hallucination in Large Language Models: Principles, Taxonomy, Challenges, and Open Questions. ACM Transactions on Information Systems; arXiv revised 2024. https://arxiv.org/abs/2311.05232

  3. 3.

    Joshua Maynez et al.. On Faithfulness and Factuality in Abstractive Summarization. ACL 2020. https://aclanthology.org/2020.acl-main.173/

  4. 4.

    Stephanie Lin, Jacob Hilton, and Owain Evans. TruthfulQA: Measuring How Models Mimic Human Falsehoods. ACL 2022. https://arxiv.org/abs/2109.07958

  5. 5.

    Adam Tauman Kalai, Ofir Nachum, Santosh S. Vempala, and Edwin Zhang. Why Language Models Hallucinate. 2025. https://arxiv.org/abs/2509.04664

  6. 6.

    Sewon Min et al.. FActScore: Fine-grained Atomic Evaluation of Factual Precision in Long Form Text Generation. EMNLP 2023. https://aclanthology.org/2023.emnlp-main.741/

  7. 7.

    Patrick Lewis et al.. Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks. NeurIPS 2020. https://arxiv.org/abs/2005.11401

  8. 8.

    Saurav Kadavath et al.. Language Models (Mostly) Know What They Know. 2022. https://arxiv.org/abs/2207.05221

  9. 9.

    Potsawee Manakul, Adian Liusie, and Mark J. F. Gales. SelfCheckGPT: Zero-Resource Black-Box Hallucination Detection for Generative Large Language Models. EMNLP 2023. https://arxiv.org/abs/2303.08896

About this article

This guide was produced using our research and sourcing methodology, including AI-assisted tools during research and drafting.

Read the full editorial policy, including corrections and update practices.