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Failure Modes

Hallucination

Fluent output that is not true.

Definition

When a model produces confident, well-formed text that is factually wrong or unsupported. It is a natural consequence of predicting plausible continuations rather than consulting a source.

Two flavours matter in practice. Factuality hallucinations come from missing knowledge — fix them with retrieval. Faithfulness failures drift from material already in the prompt — fix them by clearing noise or re-anchoring the instruction.

The framing that leads to better fixes: hallucination is partly an incentive problem. If a task is graded only on correctness, and a guess sometimes scores and abstaining never does, then guessing is the higher-scoring strategy. Changing the scoring is often more effective than adding warnings to the prompt.

How people use it
A user reporting a made-up policy.
"Is the policy in context? If yes it is a faithfulness problem; if no, it is a factuality problem. Different fixes."
Worked examples

Rewarding the admission

An extraction task where the correct answer is often "not stated in the document".

If abstention is never counted as correct, the model fills the field with something plausible. Making "not stated" a first-class correct answer removes a large share of the fabricated values without touching the model.

The citation that proves it

A confidently worded claim with no source.

Require a quotable span from the retrieved text for every factual sentence, and display it. Unsupported sentences become visible instead of fluent, which shifts the work from "detect hallucination" to "check the citation", which is much cheaper.

Avoid

Treating every error as "the model lying". Most hallucinations are a retrieval or grounding gap, not deception.

Sources
Related terms