We are continually inundated with examples of silly errors and hallucinations from generative AI. At this point, it’s no secret to anyone on the planet that these systems fail, sometimes at rather high rates. These systems also have a tendency to make stuff up, which isn’t a good look when that data is used for critical decisions. We’ve become numb to this new normal, creating a dangerous condition where we check out instead of recheck. But what happens when these errors and hallucinations become facts, facts that may be impossible to dispute or lurk in the background unseen and uncorrected?
Perspectives From Our Younger Selves
Imagine traveling back in time for a conversation with our younger selves about the current state of AI.
Younger: Wow, it must be great to live in a world without cancer or dementia.
Older: No, we haven’t cured cancer or dementia.
Younger: Well, at least people are super smart now.
Older: No, there are still many dumbasses.
Younger: At least you have systems that don’t make mistakes.
Older: No, they make mistakes all the time.
Younger: Then, what in the hell do you do with systems like this?
Older: Mostly memes and short videos of stupid shit. Oh, we even try to impress world leaders with what they’d look like as a baby with a mustache.

Although it may seem silly, this thought experiment is informative. It puts our current AI moment in perspective and should add some humility. These systems aren’t the magnificent, magical boxes capable of handling every task with equal proficiency in both work and life. They are tools that we can use for specific tasks, far from the perfected AI of science fiction, and this is where the issues creep in.
Icebergs, Grenades, and Damage
I’ve made the grenade analogy before relating to agents. It’s an apt analogy because it’s something that causes damage, but not immediately. It’s like the classic joke grenade, which is a prank you play on your friends with the expectation of future laughter. Only with AI, the result isn’t a barrel of laughs. It’s a barrel of something that stinks and should be spread over a field as fertilizer.
The mistake is that seeing so many instances of these issues gives us the false impression that these issues are being caught and possibly even corrected. Think of issues like hallucinations as an iceberg. There are far more instances beneath the surface that lie unseen, lying in wait to send our ship to the depths.

There’s also the problem that not all conditions of hallucinations are so easy to identify. The ones that seem to get identified are those that are blatantly obvious or require additional validation, such as checking the cases referenced in a legal document. This is why it seems that only lawyers and politicians are making fools of themselves with AI. The landscape is far broader than these two categories.
It’s also instructive to see how people respond when these issues are brought to light. In the recent MAHA report scandal, the White House spokesman referred to AI hallucinations as “formatting issues.” Yeah, right. Imagine walking into your bank and finding out you have no money in your account. Frantic, you ask the teller what’s going on, and they tell you that you have no money because of a formatting issue. We can’t let people downplay these problems because they are common. It’s because they are common that we need to be more concerned.
We can’t let people downplay these problems because they are common. It’s because they are common that we need to be more concerned.
Although some instances may seem silly, there are no doubt real consequences. Such as AI hallucinating into people’s medical records, because we all know that can’t end badly. Hypothetically, let’s imagine that the generative AI system utilized is 99% accurate, which is enormously far from reality. Performing 10,000 transactions/results/outputs a day could potentially yield 100 issues. Crank that up to 1,000,000 a day, and that’s 10,000. This is terrifying when considering the realistically high error rates that these systems actually exhibit. There’s no doubt a river of manure flowing into data stores. The pin has been pulled.
The nature and pattern of errors differ significantly between AI and humans.
I can already feel the AI crowd’s eyes rolling, opening their mouths to issue the overused retort, “But humans make mistakes too.” Yes, they do, but human mistakes and AI mistakes aren’t the same. The nature and pattern of errors differ significantly between AI and humans. Human error tends to be more predictable, with errors and mistakes clustering around areas such as low expertise, fatigue, high stress, distraction, and task complexity. In contrast, AI errors can occur randomly across all problem spaces regardless of complexity. This is why AI systems continue to make boneheaded errors on seemingly simple problems.
A nurse may indeed make a mistake in an annotation in a patient’s medical record, such as a misspelling, incorrect date, or time. More severe incidents, such as mixing up patients or medications, can also occur, but are much rarer. Nurses aren’t going to fabricate a whole event that didn’t happen as a mistake.
With the widespread use of AI, there are bound to be significant impacts. They won’t all cause major harm, but they will all tell an inaccurate story. Severity will depend on the system consuming this data and its intended use. Some will be purely annoying, but others will have serious consequences. A person with hallucinated data in their medical record may be prescribed the wrong medication or a medication to which they are allergic. I’m speaking in vagaries here because the extent of the problem isn’t fully understood, but one thing is certain: it’s getting worse as the usage of generative AI expands.
Another problem will be tracing these issues back to their source. It won’t always be obvious when a mistake originates from an AI system or a human. After all, these systems are meant to augment human processes. When it comes to blame, humans will always blame AI, while system owners will always blame the humans. It’s a mess.
The New Truth
Ultimately, we’ll uncover a disturbing reality. In many cases, hallucinated data becomes the truth. After all, it’s the “fact” that’s in the data store. Imagine trying to dispute this with someone at the DMV, customer service, our bank, and the list goes on and on. We become yet another in the long line of those contesting the “facts” on hand, directed to a Kafkaesque nightmare as we have to navigate some bureaucratic maze attempting to get a resolution.
A more cementing factor would be if the data is incorrect and there is no human to consult, only an AI making decisions based on the data it has. It offers apologies, not resolutions. And these are only instances that we become aware of.
Many stealthy decisions occur in the background, made by invisible systems that utilize these new “facts” to make determinations that impact our lives, our families, and our health. We may never fully understand the impact this new truth has on us, our families, or our future.
All of this damage stems from the systems we are using right now, today. Even if better, more accurate systems emerge, the damage being done today still stands. These new, more advanced AI systems may be trained or fine-tuned on hallucinated data generated by current AI systems. So, we’ve got that to look forward to.
These new, more advanced AI systems may be trained or fine-tuned on hallucinated data generated by current AI systems.
The Cause
Some of these issues can be attributed to automation bias, but it’s far from the whole explanation. There is a push from the top to utilize AI everywhere possible. Many companies are asking employees to do more with less. Well, when you have less time, one of the things you spend less time doing is worrying about quality or accuracy.
We’ve also been inundated with CEOs and other business leaders proclaiming their intent to replace everyone with AI. There isn’t much motivation to do a good job in environments like this. We’ve seen this happen in the past with jobs getting outsourced.
The reality is that these are self-inflicted wounds caused by the rapid adoption of error-prone technologies being thrown into use cases where the negative impacts aren’t considered.
What We Can Do
If companies and individuals intend to augment their activities to optimize and increase efficiency, they need to ensure that this optimization doesn’t cause harm. There needs to be processes in place to identify and address these issues before they cause a problem. This isn’t happening today.
Unfortunately, there isn’t much we, as future victims, can do, especially since we don’t know the extent of the problem. It’s impossible to be aware of all the people using these systems today and how they may affect us in the future. From government to private business, these tools are utilized for a wide range of tasks, both mundane and critical.
I’m not a fan of big government or excessive regulation, but it’s hard to see how these issues can be solved any other way, since we only become aware of the harm after it has happened. Consumer protection is something a government is far better equipped to handle than a handful of consumers. The tech crowd’s claims that burdensome regulations inhibit innovation are absolutely true, and this shouldn’t be the goal. However, the absence of existing regulations harms people, as consumers are powerless to take any action in their defense. Unfortunately, reasonable, level-headed regulations are not in our future.
At the very least, we should avoid AI in high-risk or safety-critical use cases. The thought of ChatGPT running something like air traffic control is terrifying. However, handing out this advice at this point seems like trying to reason with a hurricane. Admittedly, for users, it may not be immediately apparent that the tasks they are performing or the data they are collecting can ultimately lead to one of these scenarios.
The Problem At Our Feet
AI hallucinations and other inaccuracies are like grenades with the pin pulled, only instead of chucking them far away from ourselves, we’ve dropped them at our feet, staring at them, wondering what happens next. The only question is, how long will it take for us to find out?