Hallucination
Hallucination describes the tendency of generative AI models to produce plausible-sounding but false statements — invented citations, incorrect figures, or fabricated case law are common examples. It is the single most cited reason enterprises keep Human-in-the-Loop controls on generative AI outputs used in customer-facing or regulatory contexts.
Primarily affects
The Incidents dimension of the Australian Enterprise AI Index.
See where this shows up in the Index
The open methodology explains exactly how each dimension is scored and weighted.
Definitions are written for enterprise AI governance context, not a formal legal standard. Suggest a correction →