AI Hallucinations, why AI Makes stuff up and how to code your App to solve it.

31 Oct. 2024 - - Total Reads 1,025

Hallucinations - Why AI Makes Stuff Up

One of the most persistent and dangerous problems in enterprise AI is hallucination — when the model confidently outputs false information. This can include made-up statistics, invented names, incorrect summaries, or even citations that look real but don’t exist.

To the average user, hallucinated content appears valid. The AI sounds sure of itself, which makes it easy to believe. But inside your business, this can cause operational confusion, support overload, and decision-making errors. Externally, it risks damaging your reputation, triggering legal trouble, or violating compliance standards.

What Causes Hallucination?

Large language models (LLMs) are probabilistic. They generate the next most likely word based on patterns — not a database of verified facts. Without strong prompt grounding or contextual reference, they may fabricate details to complete a response.

Example: Hallucinated Product Description

Prompt: “Write a product overview for our new MediScan X5 diagnostic device.”

AI Response (Hallucinated):

“The MediScan X5 features TGA-certified AI imaging, 30TB of data capacity, and was named Product of the Year by the Australian Healthcare Awards.”

Reality:

  • No TGA certification (yet)
  • No such award
  • Spec exaggeration

Strategy 1: Require Source Attribution or References

Force your AI to cite sources, or refuse to answer if none exist.

Strategy 2: Post-Process Outputs for Fact-Checking

Use classification or rule-based tools to verify outputs before releasing them to users. You can layer on API checks (e.g., search-based retrieval) or even human QA for high-risk outputs.

Strategy 3: RAG – Retrieval Augmented Generation

Rather than letting AI invent from scratch, combine it with an external search layer. Here’s a basic flow:

This approach dramatically reduces hallucination by grounding the model in real data.

AI hallucinations aren’t bugs — they’re part of how language models work. The key is to never treat them as authoritative without safeguards. Enterprises need structured fact-checking, data grounding, and output validation to use AI responsibly.

Want to build AI tools that are helpful and accurate? AndMine can help you architect hallucination-resistant systems that scale without compromising trust.

Michael Simonetti, BSc BE MTE
Posted by:

Post Reads: 1K

Share this

Go on, see if you can challenge us on "AI Hallucinations, why AI Makes stuff up and how to code your App to solve it." - Part of our 183 services at AndMine. We are quick to respond but if you want to go direct, test us during office hours.

Add Your Comment

Trusted by

interact logo
Magento Solution Specialist
Naturtint
Street Kitchen
NextTech
Loan Market
Atlantic Group of Companies
Ello
GooglePlay
White Suede
Brisbane Times
Adobe Professional
Fast.co
kestrel logo
Uber
Melbourne Heart
RMIT University
French Tables
learning partners logo
Engine Swim
The Canberra Times
Kay&Burton
James Buyer Advocates
21st Century Australia Party
work and training logo
Tomorrow Stars Basketball
MyAccount
Tribe
The Burger Cheese
Focus On Furniture
CCI
Max’s
The University Of Melbourne
ATT logo
Mamma Lucia
Corrs chambers westgarth
NMI Insurance
Viktoria & Woods
The Royal Melbourne Hospital
Castran Gilbert
National Relay Services
Amino Active
Palace Cinemas
Toni&Guy
SwinBurne University of Technology
Associated Press
Bintani Australia
ABC
Ego Pharmaceuticals
Grays Ecommerce
Kadac
Novvi
nara logo
Macmillan Publishing
Catholic Insurance
Oracle
Windsorsmith
Acquia Certified Site Builder Drupal
Tassal
Bostik
University of South Australia
Herbert Smith Freehills
Madman Entertainment
Wild Rhino Shoes
Rydges
Ubertas Group
GPT Group
Taylor Rose
Carlton Football Club
Rock Pool Group
Gadens
LBG Australia and New Zealand
Heat Holders
Boston Consulting Group
DeeWhy Market
Passage To India
Gilbert+Tobin
AC/DC
Mecca Brands
Cronos Australia
Banki Haddock Fiora
intojobs logo
intowork logo
Switzer Media+Publishing
Jalna
Passage Foods
Appstore
SMH – The Sydney Morning Herald
Telstra
Beaumont
Vendor Advocacy Australia
Van Egmond Group
Maxine
Oakdale Meat Co
Plants
Australian Anthill
Australian Government
Thomson Geer
One Shift
ISO CERTIFIED 27001
CB Richard Ellis
PranaOn
Melrose Health
Forbes
findstaff logo
Eway
Smart Company
ISO Certified
Melbourne Central
aga logo
nextgenskills logo
Hanover
Positive Poster
131 Pizza
Craft CMS
OMS – Order Management System
Bondi Sands
Natralus Australia
Cooper Mills
Fresh Cheese Company
Peter Mac
Grow Your Business
Cleanfit
Coles
Ebay
Hairhouse Warehouse
Movember
Elucent
Instant RockStar
TPP
Mark Alexander Design
Crumpler
Vitura Health
ctc logo
MAP
Paypal
Toy World
itfe logo
CAN- Common Wealth Bank
Tek Ocean
High Street Armadale
Etihad Stadium
Melrose MCT
Marshall White
Inferflora
mas national logo
HGG 
Globird
Bank of Cyprus
Microsoft Certified Azure Fundamentals
VISSF
Macpherson Kelley
Dial Before You Dig
McArthur Skincare
Shell
Bolle Safety
BlackMores
iPrimus
Jetstar
Watches of Switzerland
OJAY
Fit My Car
Fairfax Media
Arthur Galan
OpenAI
Rackspace
ADP Payroll
Moov Head Lice
Federation University Australia
Aqium Gel
Google
htn logo
Magento
ACTUATE IP
Scrum.org
Metricon
DUSA, Deakin University Student Association
Xavier
The Age
liberal
Melbourne Sports and Aquatic Centre – MSAC
Bulk Nutrients
Parker Lane
The Fortune Institute
Chia
King Wood Mallesons
Unsw Australia
Bigcommerce
Royal Freemasons
Grainshaker
Arc One
Australian Organic Food CO
Australian Physiotherapy Association
WTFN
Think & Grow Rich Inc
Cell Therapies
Celebrate Health
Schiavello
Drupal
help logo
Engineers Without Borders
Florsheim Shoes
Sports Power
POSTER Magazine
National Museum of Australia
SunSense Digital Agency
Garmin
News
Sunday Creek
Matchbox Homewares
Green St Juice CO
Federation Square
skillhire logo
Launtel
Victorian Government
Dinosaur Designs
NGS Super
QV Skincare

Testimonials

The guys at &Mine are one step ahead and have made the process pleasant and stress free. All credit to them and their great working culture because I expected the process to be awful. I am looking forward to taking this project live and doing more business with &Mine. Lauren Brown, Director, Motto fashion

More Testimonials
AndMine-Google-Partner-Signature