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IBM — Archive · Vol 330 Issue 3

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IBM, September 18,2025

The Hidden Incentives Driving AI Hallucinations

Vol 330 · Issue 3 · 2025-09-18

Artificial intelligence has a confidence problem. The same large language models (LLMs) that generate fluent text for millions of users can also invent facts with equal poise, a flaw researchers call hallucination. And despite steady improvements in model accuracy, this tendency to produce wrong but plausible answers has proven stubbornly hard to fix.

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The Hidden Incentives Driving AI Hallucinations