Hallucinations
Theory
Hallucinations sit at the intersection of training, generation, and how humans read fluent text.
- The model learned statistical patterns from massive web text, much of it unverified.
- At generation time, it samples likely continuations. There is no truth check, only probability.
- You read the result as knowledge because it is fluent and confident.
Three habits cut risk hard:
- Ground the question. Paste the actual document and instruct: "Use only the text below. If the answer is not there, say so."
- Ask for quotes. "Quote the exact sentence that supports your answer." Inventing a quote is harder than inventing a paraphrase.
- Verify before you commit. For anything that moves money, sends to a customer, or affects health, treat AI output as a draft until you have checked the source.
A higher temperature setting increases hallucination rate; a lower one reduces it without erasing it. Retrieval (RAG) helps by putting real source text in the window, but if the wrong text is retrieved you get a confidently wrong answer with citations. The goal is not zero hallucination. It is a workflow that catches the wrong ones before they cost you.