Hallucinations and other limits

AI & LLM fundamentals · Essentials · 9 min

Anything you publish, send to customers or act on needs a habit of checking, or a model's mistake becomes your mistake.

A hallucination is when a model states something false as if it were true: a made-up quote, a book that does not exist, a wrong date, an invented link or legal case. It happens because the model generates plausible-sounding text; it has no built-in step that checks a fact against a source.

Hallucinations are most likely when:

  • the question is about something rare, very specific or recent (after the knowledge cutoff, the date its training text ends),
  • you ask for exact numbers, citations, quotes or URLs,
  • the prompt pushes the model to answer even when it does not know.

Other limits worth knowing:

  • Models can be weak at precise arithmetic and counting (like letters in a word) unless they can use a calculator or code.
  • They tend to agree with the person asking, so a leading question ("Isn't it true that...") invites a yes.
  • They can sound equally confident whether right or wrong, so confidence tells you nothing.

What reduces hallucinations:

  • Give the facts. Paste the document, email or data and ask the model to answer only from it. Answering from supplied text is called grounding.
  • Allow "I don't know". Say explicitly that it should say so when the information is missing.
  • Ask for quotes. Have it quote the sentence it relied on, so you can check quickly.
  • Check what matters. Verify names, numbers, links and anything legal, medical or financial before using it.

These techniques reduce the problem; none removes it completely. Treat model output like a draft from a fast but sometimes careless assistant.

Example

Answer the question using only the email below.
If the email does not contain the answer, reply exactly: "Not in the email."
Quote the sentence you used.

Email: """Hi team, the launch moves to 14 March. Budget is unchanged. - Dana"""

Question: What is the new budget?
Answer: Not in the email. (It says the budget is unchanged but gives no amount.)

Remember

  • Hallucinations are confident, plausible, false statements
  • Risk is highest for specific facts, numbers, citations and recent events
  • Ground the model in supplied text, allow 'I don't know', and verify what matters

Check yourself

  1. Which prompt is least likely to produce a made-up answer?

Sign in to answer, see the explanations, and get this lesson back as a quick review later.

Official docs: platform.claude.com/docs/en/test-and-evaluate/strengthen-guardrails/reduce-hallucinations