Why do LLMs hallucinate?

After ChatGPT took the industry by storm, everyone is now working to implement LLM-powered application and trying to understand how to best apply this incredible innovation within their own business and to benefit their customers. One of the key issues with LLMs is hallucination, the tendency of large language models to make up responses that could be inaccurate or even completely incorrect. In this talk I will discuss why hallucination occurs, ways to measure hallucinations, and some of the ways to address it, including retrieval augmented generation (aka RAG). Finally I’ll show a demo of an LLM-powered app for asking questions about recent news, that uses RAG to mitigate hallucination.