Hallucination (AI)
An AI hallucination is an output that presents incorrect, unsupported, or fabricated information as though it were valid.
✦ Key Insight
Hallucinated information can lead to poor investment research, unsafe code, incorrect compliance conclusions, or false claims about projects and people.
✕ Common Misconceptions
Professional wording is not evidence of accuracy. Verify important claims using primary sources, blockchain data, official documentation, and credible records.
Detailed Explanation
In Practice
Dig Deeper
Due Diligence
Due diligence is the process of investigating and verifying important information before making a decision or taking financial risk.
Research Framework
A research framework is a repeatable structure for collecting evidence, testing claims, comparing risks, and reaching a documented conclusion.
Large Language Model (LLM)
A large language model is an AI model trained on large amounts of data to process and generate language and other structured outputs.
Prompt Engineering
Prompt engineering is the practice of designing instructions and context to help an AI model produce more useful and reliable outputs.