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Why AI Makes Things Up: What a Hallucination Really Is

A chatbot can invent a perfect-looking source. Here is why it happens, what the research says, and a five-minute routine for catching the errors that matter.

REFERENCE [1]NOT FOUND?
Figure 1. A confident reference that cannot be found. Fluent text and true text are different things, and only a check against the real source tells them apart. Schematic.
In short
  • A hallucination is a fluent statement that is false or unsupported. It follows from how language models work; it is not a rare glitch.
  • Recent research points to two causes: errors that arise in training when true and false statements look alike, and scoring methods that reward guessing over saying "I don't know".
  • Bigger is not automatically more truthful. On one benchmark the largest models were generally the least truthful.
  • Check names, numbers, quotations and references, and give the model the source text instead of asking it to remember.

Ask a chatbot for a source and it may hand you a perfect-looking reference to a paper that does not exist. Researchers call this a hallucination. It is not a rare glitch, and it is not lying. It follows from how these systems are built, and once you see why, you can work around it.

What a hallucination is

In natural language generation, a hallucination is text that reads fluently but is unfaithful to a source or to the facts.1 The word covers invented references, wrong dates, fake quotations and confident answers about events that never happened.

Why fluent text can be false

A language model writes by estimating which word is likely to come next, then doing it again (How a Language Model Writes a Sentence shows the loop). Likely and true overlap often, but they are different things. A sentence can be statistically natural and factually wrong, and the model has no separate step that checks it against the world.

Two causes the research points to

In 2025, Kalai and colleagues argued that hallucinations are not mysterious.2 The first cause sits in training. A model must learn to tell valid statements from invalid ones, and when a fact cannot be told apart from a plausible falsehood, errors appear for the same reason a classifier makes mistakes. Nothing in the pattern of language tells a model which of two reasonable birthdays belongs to a little-known person, for example.

The second cause sits in how models are scored. Most benchmarks give a point for a correct answer and nothing for "I don't know", so a model that always guesses scores higher than one that admits doubt. The authors compare it with a student guessing on an exam, and they argue that the scoring, not only the models, has to change.2

Bigger is not automatically more truthful

The TruthfulQA benchmark asks 817 questions across 38 categories, including health, law, finance and politics, chosen because common misconceptions tempt a model to answer wrongly. The best model in the study was truthful on 58% of the questions, against 94% for people. The largest models were generally the least truthful, because they copied false claims that are common in their training text.3

Systems built since then add extra training and tools such as web search, which reduce the problem. The underlying habit of guessing has not gone away.2

A five-minute routine

  1. Give it the text. Paste the source and ask it to answer only from that text.
  2. Ask for quotations. A claim with a quotation you can find in the source is checkable. A claim without one is a guess.
  3. Check what can be checked. Look up every name, date, number, quotation and reference. Reference lists are where invented sources hide.
  4. Allow "I don't know". Telling the model it may say so can help. It is not a guarantee.
  5. Match the effort to the stakes. Skim a birthday message. Verify a medical, legal or school decision against a primary source.

What this does not mean

Hallucination does not make AI useless. It works well when you can see the source or judge the result: drafting, summarising text you supply, explaining an idea, writing practice questions. The right mental picture is a fast, confident assistant who has not checked anything.

In the course. Learning to work with that assistant, how to ask well, how to check the answers and how to use AI honestly, is a large part of the Neurovia One AI Course, which starts from the basics. See the course.

References

  1. Ji Z, Lee N, Frieske R, et al. Survey of hallucination in natural language generation. ACM Comput Surv. 2023;55(12): article 248. Find it ↗
  2. Kalai AT, Nachum O, Vempala SS, Zhang E. Why language models hallucinate. arXiv. 2025: 2509.04664. Find it ↗
  3. Lin S, Hilton J, Evans O. TruthfulQA: measuring how models mimic human falsehoods. In: Proceedings of the 60th Annual Meeting of the Association for Computational Linguistics. 2022:3214–3252. Find it ↗
Syed Kausar Abbas
Syed Kausar AbbasFounder, Neurovia One · MPhil Biochemistry scholar

Writes about the brain, biochemistry and learning, and teaches the live online Neurovia One AI Course.

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