What it is
Hallucination is when a large language model generates plausible-sounding but factually incorrect information. The model is not lying — it is predicting the most likely next tokens based on patterns in its training data. Without access to real-time facts, it fills gaps with statistically probable but wrong answers.
Why it matters
Hallucination is one of the biggest risks in enterprise AI. An agent that tells a customer their order shipped when it did not, or quotes the wrong figure, creates real business damage. Every production AI deployment needs anti-hallucination measures.
Key components
- Training data gaps
- Token prediction
- Grounding as mitigation
- Output validation
How it connects
Salesforce combats hallucination through grounding (connecting agents to real data via Data Cloud and Knowledge), the Trust Layer (which validates outputs), and citation tracking (which shows where answers came from).
Good to know
You cannot eliminate hallucination entirely — you can only reduce it. Grounding, guardrails, and human-in-the-loop review are all part of the solution. Test your agents with adversarial prompts before go-live.
Related terms
Human-in-the-Loop (HITL)
A design pattern where AI systems require human approval or intervention at critical decision points before taking action.
Trust Layer
Salesforce's AI trust and safety framework that ensures agents operate within compliance boundaries, prevent misuse, and maintain data security.
Grounding
Connecting AI responses to your actual business data so agents answer with facts, not hallucinations.
RAG (Retrieval-Augmented Generation)
A technique that makes AI smarter by fetching relevant information from your data before generating a response. The AI "looks it up" instead of guessing.
Hallucination in practice
Articles from the Funnelists Team that put this term to work.

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