AI Hallucination

AI hallucination refers to when artificial intelligence systems generate false, misleading, or nonsensical information while presenting it as factual. This occurs because LLMs predict text patterns rather than accessing verified knowledge bases. In marketing contexts, hallucinations can manifest as invented statistics, fake case studies, or incorrect technical specifications. Mitigation strategies include fact-checking AI outputs, using retrieval-augmented generation (RAG) to ground responses in real data, implementing human review workflows, and fine-tuning models on verified brand information. Marketers should treat AI-generated content as a first draft requiring verification, especially for technical, legal, or data-sensitive content.