Glossary

Hallucination

A hallucination is a confident, fluent statement produced by an AI system that is factually wrong or unsupported by any source.

For businesses this manifests as invented pricing, discontinued services described as current, wrong locations, or attributes belonging to a similarly-named company.

The usual cause is an information gap. When authoritative current information is missing or unreadable, the model fills the space from whatever is nearest in its training — including stale or conflated material.

Why it matters

Hallucinations about your business are actively harmful and largely preventable. Clear, current, retrievable information is the fix, because it removes the gap the model was filling.

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