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

Trendingnow

1

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

2

Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard

3

Red Lobster’s 37-year-old CEO waited tables before joining the C-suite—he says it was a crash course in managing ‘difficult people and situations’

1

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

2

Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard

3

Red Lobster’s 37-year-old CEO waited tables before joining the C-suite—he says it was a crash course in managing ‘difficult people and situations’
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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Newsletters

Coinbase’s big Base mistake offers an important lesson for the crypto industry
NewslettersFortune Crypto
Coinbase’s big Base mistake offers an important lesson for the crypto industry
By Jeff John RobertsJuly 20, 2026
5 hours ago
Middle aged businesswoman talking during a meeting
NewslettersFortune Workplace Innovation
HR has a credibility problem—and it starts with not speaking the language of finance
By Kristin StollerJuly 20, 2026
5 hours ago
C-suite promotions now come with three or more jobs
C-SuiteNext to Lead
C-suite promotions now come with three or more jobs
By Ruth UmohJuly 20, 2026
6 hours ago
‘Harvest now, decrypt later’: Hackers are stealing data they can’t even read yet—banking on quantum computers to crack it later
NewslettersMarkets
‘Harvest now, decrypt later’: Hackers are stealing data they can’t even read yet—banking on quantum computers to crack it later
By Jim EdwardsJuly 20, 2026
7 hours ago
Tarek Mansour, co-founder of Kalshi, in Washington, D.C. on Sept. 29, 2025. (Photo: Kent Nishimura/Bloomberg/Getty Images)
NewslettersFortune Tech
Thanks to $5.7 billion in Kalshi and Polymarket bets, FIFA’s World Cup final may be ‘the largest gambling event in history’
By Andrew NuscaJuly 20, 2026
7 hours ago
Jeremy Allaire speaks on stage at conference.
NewslettersCEO Daily
Agentic commerce is coming—and the battle to build its infrastructure is on
By Diane BradyJuly 20, 2026
9 hours ago

Most Popular

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
2 days ago
Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard
AI
Power companies are using eminent domain to seize land for data centers as 70% of Americans say not in my backyard
By Aaron Walayat and The ConversationJuly 19, 2026
1 day ago
Red Lobster’s 37-year-old CEO waited tables before joining the C-suite—he says it was a crash course in managing ‘difficult people and situations’
Success
Red Lobster’s 37-year-old CEO waited tables before joining the C-suite—he says it was a crash course in managing ‘difficult people and situations’
By Preston ForeJuly 19, 2026
1 day ago
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
Future of Work
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
By Sarah GlodekJuly 20, 2026
11 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
4 hours ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
8 hours 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.