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Glossary · Hallucination Rate

Hallucination Rate

Hallucination rate is the fraction of AI outputs that contain fabricated or factually incorrect content presented as true.

A lower hallucination rate is critical for agents that produce factual work — support answers, legal summaries, financial figures — where a confident wrong answer is costly.

Outcome-based evaluation surfaces hallucination as failed outcomes, which is why scoring on results matters more than scoring on fluency.

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