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AI’s Hallucination Problem Isn’t Going Away

forbes.com · 1,107 words · saved by 1 readers

The most recent releases of cutting-edge AI tools from OpenAI and DeepSeek have produced even higher rates of hallucinations — false information created by false reasoning — than earlier models, confounding the companies and presenting challenges as the industry evolves. Hallucinations are when AI bots produce fabricated information and present it as fact. (Photo ... More AI bots have always produced at least some hallucinations, which occur when the AI bot creates incorrect information based on the information it has access to, but OpenAI’s newest o3 and o4-mini models have hallucinated 30-50% of the time, according to company tests, for reasons that aren’t entirely clear. OpenAI bills o3 as its most powerful model because it is a “reasoning” model, which takes more time to “think” by working out answers to questions through step-by-step reasoning, with the company also claiming the model can think visually and process images. But it’s not just an OpenAI problem: Another recent tool,

Business Why AI ‘Hallucinations’ Are Worse Than Ever By Conor Murray , Forbes Staff. Murray is a Forbes news reporter covering entertainment trends. Follow Author May 06, 2025, 01:12pm EDT Topline The most recent releases of cutting-edge AI tools from OpenAI and DeepSeek have produced even higher rates of hallucinations — false information created by false reasoning — than earlier models, confounding the companies and presenting challenges as the industry evolves. Hallucinations are when AI bots produce fabricated information and present it as fact. (Photo Illustration by Thomas Fuller/SOPA Im

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