AI hallucination
AI
When an AI model states something false or made up as if it were true.
For example, a customer asks if they can return an opened item. An ungrounded AI might say "Yes, within 60 days" because that sounds normal, even if your policy is 30 days for unopened items only. A grounded agent looks up the policy and quotes it.
One wrong answer can cost a refund, a customer or your reputation, so controlling hallucinations is essential before letting AI talk to customers.
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