AI at work
Hallucination
When an AI states something false with full confidence: a price you do not charge, a service you do not offer, a policy that does not exist.
Why it matters for your business
An assistant that invents answers on your website is a liability. The fixes are known: give it your real documents, tell it to say "I do not know" and hand off to a person, and keep it out of topics where being wrong is costly. Test it with hard questions before it goes live.
In practice
A shuttle company's assistant is told never to state pricing or availability. When asked, it collects the details and books a call with a person instead of guessing.
Related terms
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