Hallucination

Ethics & safety Simplified version available
Definition

When an AI model generates information that sounds confident and plausible but is factually incorrect or entirely made up. A key limitation of current large language models.

Example in context

An AI might hallucinate by inventing a fake quote from a real person, or stating an incorrect historical date as fact.

More Ethics & safety terms

View all AI terms →

Missing a term?

Help us build the best AI dictionary for everyone.

Future WealthAcademy

Smarter investing starts here. Educational content for all experience levels.

Market data provided by Alpha Vantage, a Nasdaq-licensed distributor. All prices are delayed by at least 15 minutes as required by NYSE, NASDAQ, and LSE exchange licensing rules. Charts powered by TradingView (free embed).

All market data and content on Future Wealth Academy is provided for educational and informational purposes only. It does not constitute financial advice and must not be used to make investing or investment decisions. Investing in financial markets involves significant risk of loss. Past performance is not indicative of future results. Future Wealth Academy is not a regulated financial adviser.

© 2026 Future Wealth Academy. All rights reserved.