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← Glossary
AI and agentic systems

AI hallucination

An AI hallucination is when an AI model generates a confident but false or made-up answer: a non-existent function, a wrong figure, code that looks right and doesn't work.

It is not a bug that can be "fixed"; it is a property of the models. The defences are data (RAG), tests and human review of outputs.

What it means for your business

In vibe coding, hallucination is the reason code has to be tested, not just run to see if it looks fine.

Related terms

Large language model (LLM)

An AI model trained on huge amounts of text that understands and writes language.

RAG (retrieval-augmented generation)

A way to let AI answer from your own documents instead of from memory.

Code review

A check of code by a person or AI before it goes into the app.

Vibe coding

Building an app by describing it in plain language while AI writes the code.

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