Glossary
Hallucination Rate
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.