ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Here’s How AI Chatbots ‘Hallucinate’ And Why It Is Dangerous For Users

Turns out, AI chatbots are also capable of hallucinating and they do so by making up false information in response to a user’s prompt.
PUBLISHED DEC 29, 2023
Cover Image Source: Pexels | Photo by cottonbro studio
Cover Image Source: Pexels | Photo by cottonbro studio

The word “hallucination” is commonly associated with people hearing sounds and seeing things that no one else seems to hear or see. However, since the advancement of AI chatbots, the world has taken a different stand. Turns out, AI chatbots are also capable of hallucinating and they do so by making up false information in response to a user’s prompt. Further, “hallucinate” in the AI sense, is Dictionary.com’s word of the year as it best represents the potential impact that AI may have on “the future of language and life.”



 

An AI hallucination occurs when a large language model (LLM) generates false information. LLMs are AI models that power the commonly known chatbots like ChatGPT and Google Bard.

Photo illustration of the welcome screen for the OpenAI
Photo illustration of the welcome screen for the OpenAI "ChatGPT" app | Getty Images | Photo by Leon Neal

An AI chatbot hallucinates when users provide a prompt that is either made up or about something that the LLMs have no understanding of. In this case, the LLMs use statistics to generate false information in language that is grammatically correct and within the context of the prompt. Thus, the information appears plausible but it necessarily isn’t true. Sometimes AI hallucinations appear to be nonsensical but it is often hard to differentiate between true information and a hallucination.

One infamous example of an AI hallucination mentioned in a TechTarget report involved Google's chatbot, Bard. When the chatbot was prompted “What discoveries from the James Webb Space Telescope can I tell my 9-year-old about?" Bard responded with an untrue claim that the James Webb Space Telescope was the first to take pictures of an exoplanet outside this solar system. However, in reality, the first images of an exoplanet were taken in 2004 according to NASA, and it was not the James Webb Space Telescope as it was launched in 2021.



 

Despite that, Bard's answer sounded plausible and was consistent with the prompt. This poses a risk to users as someone who is not looking at the information with a skeptical eye may believe that the chatbot’s reply is true.

Photo illustration of the OpenAI ChatGPT's  answer to the question
Photo illustration of the OpenAI ChatGPT's answer to the question "What can AI offer to humanity?" | Getty Images | Photo by Leon Neal

There is no clear way to determine the exact causes of AI hallucinations on a case-by-case basis. Further, an immediate risk that AI hallucinations pose is that they significantly hurt user trust. With the development of advanced chatbots, users begin to experience AI as more real and develop more inherent trust. However, false information given out in hallucinations can corrode that trust leaving users with the feeling of betrayal.

Another problem with AI hallucinations is the lack of awareness of the problem. Users can be fooled with false information and this can even be used to spread misinformation, fabricate citations and references, and even be weaponized in cyberattacks. Another challenge is mitigating the AI hallucinations as it can be difficult or in many cases impossible to determine why the LLM generated the specific hallucination. Further, there are limited ways to fix these hallucinations as going into the model to change the training data can use a lot of energy.

Both OpenAI and Google have warned users about the mistakes that their AI chatbots can make. The firms have advised users to double-check their responses.

Image of Person's hand holding an iPhone using the Google Bard generative AI language model (chatbot) | Getty Images | Photo by Smith Collection
Image of Person's hand holding an iPhone using the Google Bard generative AI language model (chatbot) | Getty Images | Photo by Smith Collection

Tech organizations are also working on ways to reduce hallucination, as per a CNBC report. Google handles hallucinations through user feedback. When Bard generates an inaccurate response, users are encouraged to click the thumbs-down button and describe why the answer was wrong to help the chatbot improve. Further, OpenAI has implemented a strategy called “process supervision” in which the AI model rewards itself for using proper reasoning to arrive at an output instead of just rewarding the system for generating a correct response to a prompt.

MORE ON MARKET REALIST
After going through everything on the board, the player left Harvey in hysterics with his answer.
17 hours ago
As it so turned out, the weird-looking floor lamp was a piece from a very famous studio.
18 hours ago
Most contestants were consistently getting the answers wrong, and Harvey was worried about what was next.
1 day ago
Some claimed that they got the puzzle despite English being their second language.
1 day ago
The letter was written to a columnist in response to a piece taking a swipe at Sinatra.
1 day ago
In a special episode of Celebrity Family Feud, a WWE star decided to go for the one thing Harvey is known for.
1 day ago
Luck was shining for her as she was off to a flying start and won the car with a single card.
1 day ago
Sajak had a witty reply for the contestant who was fanboying over White during the game.
4 days ago
The model said that considering White's age she would also take the offer from Sony.
4 days ago
Sheila won a brand new entertainment unit, complete with an HD plasma TV and mini bar from Howard Miller.
5 days ago
The appraiser disclosed that Yoakum began painting in the 1960s and he created one unique piece of art every single day.
5 days ago
The entrepreneur also managed to get the sharks to taste the vegan alternative meant for pets.
5 days ago
Throughout the game Monica tried to calm her nerves by placing her right hand over her chest.
6 days ago
Harvey later realized that the contestant had a crush on him and they had a moment.
6 days ago
The host had warned the men in advance to not risk their marriage for some points.
7 days ago
The big box retailer's signature brand detergent which has a cult following, may be discontinued.
7 days ago
The player made two great comebacks while playing the "Spelling Bee" game to win a car.
7 days ago
The item that had been hanging over the guest's stove for years turned out to a piece from Picasso.
7 days ago
Her loss turned into a bittersweet moment as fans were touched by a reference to another popular game show.
Mar 23, 2025
The player wasn't sure if she had to keep going after getting it right in the first attempt.
Mar 23, 2025