• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
NewslettersData Sheet

It’s time to get serious about AI hallucinations

Rachyl Jones
By
Rachyl Jones
Rachyl Jones
Down Arrow Button Icon
Rachyl Jones
By
Rachyl Jones
Rachyl Jones
Down Arrow Button Icon
January 17, 2024, 2:22 PM ET
Cars traveling on a desert highway are engulfed in heat haze near Jaww Al Nasla in western Qatar on November 15, 2022.
Cars traveling on a desert highway are engulfed in heat haze near Jaww Al Nasla in western Qatar on November 15, 2022.Odd Andersen—AFP/Getty Images

Hi there, it’s tech reporting fellow Rachyl Jones. The term “hallucination” has taken on a different meaning in recent years, as artificial intelligence models have become widely accessible. Once a term reserved for the experience of humans, we now say AI can “hallucinate,” or confidently spew inaccurate information as if it were true. As the technology becomes more intertwined with work and personal life, the phenomena could have real-world impact on how people make decisions. 

But just how common is the problem? Perhaps more than we think. 

The New York Times previously reported the rates at which popular AI models made up facts, with hallucinations ranging from OpenAI’s ChatGPT at 3% of the time to Google’s PaLM at a staggering 27%. 

According to a new survey, the problem may be even more widespread. Eighty-nine percent of machine learning (ML) engineers who work with generative AI say their models show signs of hallucination, according to survey results published Wednesday from ML observability platform Aporia. That’s a whole lot of delusional computing. 

The results also indicate that 93% of engineers encounter problems with their models on a daily or weekly basis. 

As a provider of observability tools that can help mitigate hallucinations, Aporia is not exactly an unbiased source on the topic. But if its survey—which was based on 1,000 engineers spanning industries—is even remotely accurate, it’s only a matter of time before these problems seep into our own everyday lives.

As Data Sheet discussed yesterday, AI is a key topic at the World Economic Forum in Davos, Switzerland, this week, with policymakers and AI experts convening dozens of panels to discuss the opportunities and dangers of AI, and its impact on elections, misinformation, and economic development. When it comes to AI hallucinations, the stakes are too high to delude ourselves.

On that note, here’s today’s biggest tech news.

Rachyl Jones

Want to send thoughts or suggestions to Data Sheet? Drop a line here.

NEWSWORTHY

To the skies. Alphabet’s Wing has revealed the first in its new lineup of drones, which are larger and can carry heavier objects than previous machines, The Verge reported. They will launch in cities in which Wing operates over the next 12 months. 

Amazon shopping assistant. Amazon has launched a generative AI tool that can answer customer questions about specific products, Marketplace Pulse reported. The product pulls information from the listing and reviews to answer questions within seconds.

A(i)^2 + B^2 = C^2. DeepMind, Google's AI lab, on Wednesday launched a new product that can solve geometry equations, TechCrunch reported. The problem-solving approach the AI takes to proving mathematical theorems could be useful for other AI applications, according to DeepMind. 

IN OUR FEED

"Technology may be disrupting our traditional revenue, but it offers us many new opportunities to reach audiences and deliver the kind of quality journalism they will pay for."

—CNN Worldwide chief Mark Thompson said in an internal memo reported on by Axios about his strategy to build digital subscription-based products and engage with generative AI. The note follows years worth of cord-cutting, which is expected to continue, affecting revenues for the cable news network.

IN CASE YOU MISSED IT

Sam Altman admits being pushed out of OpenAI was ‘wild’ and caught him ‘off guard’—but he’s done talking about it, by Eleanor Pringle 

Microsoft CEO Satya Nadella is an AI winner. He doesn’t like to talk about the potential losers, by Jeremy Kahn

As investors obsess over cash flow, Bessemer says it’s time to rethink how late-stage companies are valued, by Allie Garfinkle 

‘Fortnite’ maker Epic Games to contest Apple’s ‘27% tax’ on outside payments and its ‘bad faith compliance’ with court ruling, by Leah Nylen, Greg Stohr, Mark Gurman, and Bloomberg

BEFORE YOU GO

Goodbye Google Flights. Google will adjust its search results in Europe to comply with the Digital Markets Act, it said in a blog post Wednesday. Under the new regulation, Google must treat rival services the same as it treats its own offerings when presenting them in search results. To comply, the company will make comparison sites more prominent in its search page and remove certain Google-specific features from the search page, including Google Flights. 

This is the web version of Data Sheet, a daily newsletter on the business of tech. Sign up to get it delivered free to your inbox.

About the Author
Rachyl Jones
By Rachyl Jones
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Newsletters

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Newsletters

NewslettersMPW Daily
These are the female exec moves you need to know this week, from Xbox to Match Group’s board shakeup
By Emma HinchliffeFebruary 27, 2026
14 hours ago
Intuit global headquarters in Mountain View, Calif.
NewslettersCFO Daily
Intuit’s CFO isn’t flinching at AI. He says it’s fueling the company’s next growth phase
By Sheryl EstradaFebruary 27, 2026
19 hours ago
NewslettersCEO Daily
You’ve lost the CEO succession race. Here’s your multi-million dollar bonus
By Claire ZillmanFebruary 27, 2026
20 hours ago
NewslettersTerm Sheet
Exclusive: Flux, backed by 8VC, raises $37 million to vibe code electronics
By Allie GarfinkleFebruary 27, 2026
21 hours ago
NewslettersFortune Tech
Salesforce’s Marc Benioff does not fear the ‘SaaS-pocalypse’
By Alexei OreskovicFebruary 27, 2026
22 hours ago
AIEye on AI
After months of quiet, Perplexity’s CEO steps into the OpenClaw moment
By Sharon GoldmanFebruary 26, 2026
2 days ago

Most Popular

placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt robot vacuum maker iRobot says Elon Musk’s vision of humanoid robot assistants is ‘pure fantasy thinking’
By Marco Quiroz-GutierrezFebruary 25, 2026
2 days ago
placeholder alt text
Commentary
'The Pitt': a masterclass display of DEI in action 
By Robert RabenFebruary 26, 2026
2 days ago
placeholder alt text
Success
Jeff Bezos says being lazy, not working hard, is the root of anxiety: ‘The stress goes away the second I take that first step’
By Sydney LakeFebruary 25, 2026
3 days ago
placeholder alt text
Economy
It’s more than George Clooney moving to France: America is becoming the ‘uncool’ country that people want to move away from
By Nick LichtenbergFebruary 27, 2026
23 hours ago
placeholder alt text
Success
Japanese companies are paying older workers to sit by a window and do nothing—while Western CEOs demand super-AI productivity just to keep your job
By Orianna Rosa RoyleFebruary 27, 2026
16 hours ago
placeholder alt text
Success
Gen Z Olympic champion Eileen Gu says she rewires her brain daily to be more successful—and multimillionaire founder Arianna Huffington says it really does work
By Orianna Rosa RoyleFebruary 25, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.