Artificial Intelligence
Article

Is Your AI Lying To You? How To Avoid Hallucinations

by
UHY LLP
May 8, 2025
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Summary

Is your AI lying to you? Learn how to spot and prevent AI “hallucinations” to ensure your business makes decisions based on facts, not fiction.

As AI systems start to dominate the marketplace, concerns regarding accuracy and precision are becoming more prevalent. The convenience of these systems is undeniable: They can answer complex questions in minutes, save us time and help us create content. But what if the information you're relying on isn't just wrong—it's completely fabricated? AI models are designed to sound right even when they're shooting from the hip, so they can be extremely convincing. They often present information to justify their position, making it difficult to distinguish fact from fiction. This raises another question: Can you trust AI with complex, high-stakes tasks?

What causes hallucinations?

These errors or—as they're called in the industry, hallucinations—are often attributed to knowledge gaps caused by the parameters and information loaded into the system. What’s often overlooked is the fact that AI is designed to keep you coming back for more by, in short, making you happy.

In the case of knowledge gaps, you can train AI to successfully identify the make and model of a vehicle on vast amounts of images, but it may identify other items as a vehicle because it doesn't have context. In the case of making its users happy, if the user doesn’t point out that the returned information is wrong, the AI will not acknowledge the strength of its results or, in some cases, even deny it made a mistake.

Read this article in full here.

UHY LLP
UHY LLP

UHY is one of the nation’s largest professional services firms providing audit, tax, consulting and advisory services to clients primarily in the dynamic middle market. We are trailblazers who bring our experience from working within numerous industries to our clients so that we can provide them a 360-degree view of their businesses. Together with our clients, UHY works collaboratively to develop flexible, innovative solutions that meet our clients’ business challenges. As an independent member of UHY International, we are proud to be a part of a top 20 international network of independent accounting and consulting firms.

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