Checking AI Output: Hallucinations, Bias and Verification

You recognize unreliable AI output and know how to verify.

Why this lesson matters

AI lies. The result is the same: you get information that looks reliable but is factually wrong. If you don't spot it, you make decisions based on nonsense.

This lesson makes you more critical. You'll learn to recognise when AI is unreliable, how to verify output, and when you're better off leaving AI out of it altogether.

What are hallucinations?

An AI hallucination is when the model presents made-up information as if it were fact.

Why does this happen?

AI models predict the most likely next word. They "know" nothing. They generate text that sounds statistically plausible. That means:

  • They invent sources that don't exist
  • They give confident answers to questions that have no answer
  • They mix facts from different contexts into something that's wrong everywhere

Examples of hallucinations

SituationWhat AI doesWhy it's dangerous
Legal questionInvents a statute with a realistic article numberYou cite a law that doesn't exist
StatisticGenerates a percentage that sounds plausibleYou build a business case on a made-up number
Looking up a personCombines info from different peopleYou send an email with the wrong background
CitationInvents a paper with real author namesYou refer to research that doesn't exist
Watch out

Hallucinations are common. They happen with every AI model, at every provider. This is how the technology works, by design. The only question is: how do you deal with it?

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