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AI Problems

GenAI’s Hallucinogenic Content Can Ruin Your Business

Gidi Cohen
Gidi Cohen |

Generative AI (GenAI) has revolutionized content creation, offering unprecedented capabilities in generating text, code, presentations, images, and more. However, one of the inherent challenges with GenAI is the production of hallucinogenic content—outputs that are plausible but factually incorrect or nonsensical. Understanding this phenomenon and how to solve for it is important for any business leveraging GenAI. 

What is Hallucinogenic Content? 

Hallucinogenic content refers to information generated by AI that appears coherent and credible but is actually false or misleading. This can occur due to: 

  • Data Limitations: AI models are trained on vast datasets, but these datasets may contain inaccuracies or biases. 
  • Pattern Recognition: GenAI excels at recognizing patterns, but it can sometimes create connections that don’t exist in reality.
  • Context Misinterpretation: The AI might misinterpret the context, leading to outputs that are logically flawed. 

In Gartner’s 2024 CIO survey “Key Findings From the 2024 Gartner CIO Generative AI Survey“ showed that CIOs’ top concerns for GenAI are the hallucinogenic content that can results from reasoning errors made by the platform and fed into content propagated by the company. A secondary concern ws misinformation created by bad actors, followed by varying privacy assurances made by the platform. 

  Chart showing Gartner's survey results of the potential risks of GenAI

Why It’s Important to Recognize Hallucinogenic Content 

Credibility in the public eye is a must for businesses of any size, especially as the public relies on its published information to make accurate and informed decisions. When hallucinogenic content enters the decision-making process, it can severely undermine that public trust. Stakeholders, including customers, investors, and employees, expect reliable and factual data. If a business consistently disseminates inaccurate information, it risks losing its reputation for reliability. This erosion of trust can lead to a loss of customer loyalty, decreased investor confidence, and ultimately, a decline in market position. 

The legal and ethical implications of disseminating false information are significant. Businesses are bound by laws and regulations that mandate the accuracy of the information they provide. Hallucinogenic content can lead to the spread of misinformation, which may result in legal actions against the company. For instance, if a business publishes misleading product information or cites data that is not verifiable, it could face lawsuits, fines, and other legal penalties. Beyond legal repercussions, there are ethical considerations. Companies have a moral obligation to ensure the information they share is truthful and accurate. Failing to do so can damage their reputation and erode public trust, leading to long-term negative consequences. 

Operational efficiency is another critical area affected by hallucinogenic content. Businesses depend on accurate data to optimize their operations, from supply chain management to strategic planning. When the data is incorrect, it can lead to poor decision-making, resulting in inefficiencies and increased costs. Ensuring the accuracy of AI-generated content is essential for maintaining operational efficiency and achieving business objectives. 

Real-World Instances of Hallucinogenic Content 

Legal case of Mata v Avianca: An attorney used ChatGPT to do his legal research for him. The platform cited precedents that backed up the current legal case but that did not exist and on cases that had never taken place. The attorney was subjected to a hefty fine for this oversight.  

Google’s Bard Chatbot: In February 2023, Bard incorrectly stated that the James Webb Space Telescope captured the first image of a planet outside our solar system. This misinformation could have led to significant public misunderstanding. 

The Need for Monitoring and Alert Systems 

To mitigate the risks associated with GenAI and hallucinogenic content, businesses must implement platforms that monitor content created by these platforms and alert users to potential inaccuracies. The platform must be able to utilize business context via platforms like CRMs, corporate-owned LLMs, to check for data accuracy and verification of materials.  Here’s why: 

  1. Content in motion: Automated systems must flag questionable content as it’s generated, allowing for immediate review and correction, and reducing downstream issues.  
  2. Consistency: Ensures that all content aligns with verified business data standards, data security, and relevant policies. 
  3. Risk Management: Proactively managing the risk of misinformation protects the business from potential fallout. 

Incorporating a content monitoring and alert system for hallucinogenic content is not just a safeguard but a necessity for modern businesses. By understanding and addressing this common attribute of GenAI, companies can harness the power of AI while maintaining accuracy, credibility, and trust. 

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