Reducing AI Hallucinations: Top 10 Best Practices to Mitigate AI Hallucinations
- Chattie Blogs
- Jul 22, 2024
- 4 min read
AI hallucinations, where artificial intelligence systems generate inaccurate, nonsensical, or misleading information, pose significant challenges for businesses and end-users. Understanding the causes and implementing effective mitigation strategies is crucial to harness the full potential of AI while minimising its risks.

Examples of AI Hallucinations
AI hallucinations have led to several notable incidents, highlighting the potential risks and consequences:
Legal Missteps: A UK legal professional was admonished for citing non-existent legal precedents in court filings generated by an AI tool. The court emphasized the necessity of verifying AI-generated content, especially in legal contexts where accuracy is paramount (Fasken).
Healthcare Risks: AI models used in healthcare have misdiagnosed conditions, such as identifying benign skin lesions as malignant. Such errors highlight the critical importance of reliability and accuracy in medical applications of AI (Oxford University).
Public Risks: Amazon is fast becoming a marketplace for AI-produced books that are being passed off as human generated. Travel guides and a recent example advising on mushroom foraging are examples that present risks to the unassuming public (Guardian).
Academic Errors: At a UK university, a professor relied on AI-generated journal articles for research, only to find out later that many of the articles did not exist. This incident underscores the need for careful validation of AI outputs in academia (Oxford University).
At the start of 2024, the UK's Department for Work and Pensions (DWP) effectively banned its employees from using ChatGPT for official business due to concerns about hallucinations and inaccuracies, underscoring the need for stringent controls over AI use in governmental operations (PublicTechnology).
Common Causes of AI Hallucinations
Training Data Quality: AI models are only as good as the data they are trained on. Poor-quality, biased, or insufficient training data will lead to inaccurate outputs.
Pattern-Based Content Generation: AI models generate content based on patterns in the training data, which can sometimes result in plausible but incorrect information. This is because these models do not inherently understand the data they process.
Contextual Misinterpretation: AI systems may misinterpret the context of a prompt, leading to off-topic or irrelevant responses. This is particularly common when AI is used outside its intended domain.
Input Bias: If the input data contains biases, the AI is likely to replicate and even amplify these biases in its outputs, leading to skewed or incorrect information.
Complexity Mismatch: Overfitting and underfitting during training can cause AI models to perform poorly on new data, either by being too tailored to the training data or too simplistic to capture necessary details.
Top 10 Best Practices to Reduce AI Hallucinations
High-Quality Input Data: Ensure the training and the input data is of the highest-quality and relevant to the AI's intended use. Avoid using data that is outdated and put processes in place to ensure regular updates. This is the cornerstone of the Chattie proposition. We spend the time upfront ensure the reference library of company information is of the highest quality, auditing every input, output and corresponding reference enables Chattie clients to continuously improve the quality of their underlying data.
Retrieval Augmented Generation (RAG): Implement RAG to allow AI models to access verified databases during generation, ensuring responses are based on accurate information (MIT Sloan Tech). This is again part and parcel of the Chattie platform.
Prompt Engineering: Use clear, specific prompts and avoid ambiguous language. Providing context and examples can help guide the AI to produce more accurate results. Implemented as part of the behavioural settings within the Chattie platform.
Human Oversight: Maintain human supervision to evaluate and validate AI outputs, especially for business critical applications and use cases. Through auditing and Chattie analytics, clients continuously monitor AI outputs and can quickly make manual changes where needed.
Limit Output Scope: Restrict the AI’s potential responses to predefined formats or choices to reduce the likelihood of off-topic hallucinations. This is controlled within Chattie's behavioural settings.
Use Contextual Embeddings: Apply advanced embedding techniques that capture context more effectively, ensuring that the AI understands and maintains the relevance of its responses.
Control Information Flow: Manage and control the information fed into AI models, ensuring it is relevant and accurate for the task at hand.
Continuous Monitoring and Feedback: Regularly monitor AI outputs and provide feedback to refine the performance over time. This helps in gradually reducing the incidence of hallucinations. It's why continuously monitoring Chattie analytics and the underlying reference library is so important to improve responses and reduce errors over time.
Transparent Model Interpretability: Enhance model interpretability by making the decision-making process of AI models transparent. This helps in identifying the root causes of hallucinations and addressing them systematically.
Anticipate and Mitigate Errors: Expect and plan for occasional errors. Implement safeguards and develop protocols for quickly addressing and correcting AI-generated misinformation.
Conclusion
AI hallucinations present a significant barrier to entry in the deployment of AI systems across various industries. These hallucinations can lead to serious consequences, particularly in fields such as law, healthcare, and public information, where accuracy is paramount. Understanding the root causes of AI hallucinations is the first step toward mitigating their impact.
Implementing a comprehensive set of strategies can significantly reduce the occurrence of AI hallucinations. Like with anything AI related, maintaining human oversight, controlling information flow, and continuously monitoring AI outputs are critical measures.
By employing these best practices, businesses and organisations can harness the full potential of AI while minimising the potential risks. Chattie has been designed and developed with many of these core practices at the heart of the proposition. This approach ensures outputs that are trustworthy, accurate, and auditable delivered across a variety of use cases. For more information about the Chattie approach to minimise AI Hallucination, visit us at www.chattie.co.uk.





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