Ethics & Privacy

LLM hallucinations and grounded answers

Hallucinations happen when a model produces a convincing but false answer. Grounded answers cut that risk by tying every claim to verifiable data.

How to use the term

What to read alongside

This term is worth reading together with the neighbouring concepts in its section and the Gravity AI launch scenarios it belongs to.

Glossary section

The risks that surface during internal review and the move to production: accuracy of answers, security and how customer data is handled.

What it is

A practical definition

Hallucinations happen when a model produces a convincing but false answer. Grounded answers cut that risk by tying every claim to verifiable data.

Example in ecommerce

In eCommerce this matters most for specs, compatibility, stock and product restrictions.

Business impact

Cuts the rate of wrong recommendations, returns and lost trust in the AI assistant.

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