Glossary › hallucination
Trading glossary · ai
hallucination
When an AI makes something up, like a number or a fact, and says it confidently as if it were true.
The fuller meaning
Confident but false AI output, formally called confabulation: invented numbers, events, report titles, quotes, links or citations. It comes from how the model works, predicting likely text, so every figure must be checked against the chart, the company's own filing or exchange data.
hallucination, also called confabulation.
Related words
AI · AI assistant · API key · devil's advocate · filing · follow-up question · generative AI · indicator alert · knowledge cutoff · large language model