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

31 Oct. 2024 - - Total Reads 1,650

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: 1.7K

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 184 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

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

Testimonials

Thank you for all of your hard work in getting our beautiful Melrose website live today. Woohoo!From the incredible design, to all of the behind the scenes technical aspects, to making it all come together and managing all of our feedback. - Lucinda Hobson, Melrose Project Manager Thank you to each and everyone of you for your dedication and hard work in getting this live and running and for your continuous hard work over the week in ironing out the issues that come with a website launch. Kat Heath, Melrose Group Marketing Manager

More Testimonials
AndMine-Google-Partner-Signature