# Hallucination

A hallucination is information generated by an AI system that sounds credible but is incorrect, unsupported, or invented.

## Why it matters

In knowledge work, a small invented detail can create a bad decision, an inaccurate customer message, or a compliance risk. Teams should design for verification rather than treating fluent output as evidence.

## Example

An AI writes a project update that confidently names a launch date that was never approved in the source materials.

## FAQ

### What is Hallucination in simple terms?

A hallucination is information generated by an AI system that sounds credible but is incorrect, unsupported, or invented.

### Why does Hallucination matter for teams using AI?

In knowledge work, a small invented detail can create a bad decision, an inaccurate customer message, or a compliance risk. Teams should design for verification rather than treating fluent output as evidence.

### What is a practical example of Hallucination?

An AI writes a project update that confidently names a launch date that was never approved in the source materials.


Source: https://www.luffy.so/ai-glossary/hallucination

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