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Glossary

Hallucination Rate

Reviewed 9 April 2026 Canonical definition

Hallucination rate is the proportion of an AI agent's outputs that contain factually incorrect, fabricated, or unsupported claims — typically measured through evaluation against a ground truth dataset or human review. High hallucination rates are a governance and reliability concern because they can lead to incorrect decisions, eroded user trust, and compliance violations in regulated use cases. Monitoring hallucination rate over time is a key quality governance metric.