Why Language Models Hallucinate

Adam Tauman Kalai, Ofir Nachum, Santosh S. Vempala, Edwin Zhang
9/4/2025
cs.CL

No official code found. Best implementation: GED-DO/Lithium-Validation (0 stars, MIT, last commit 2025-09-21).

Abstract

Like students facing hard exam questions, large language models sometimes guess when uncertain, producing plausible yet incorrect statements instead of admitting uncertainty. Such "hallucinations" persist even in state-of-the-art systems and undermine trust. We argue that language models hallucinate because the training and evaluation procedures reward guessing over acknowledging uncertainty, and we analyze the statistical causes of hallucinations in the modern training pipeline. Hallucinations need not be mysterious -- they originate simply as errors in binary classification. If incorrect statements cannot be distinguished from facts, then hallucinations in pretrained language models will arise through natural statistical pressures. We then argue that hallucinations persist due to the way most evaluations are graded -- language models are optimized to be good test-takers, and guessing when uncertain improves test performance. This "epidemic" of penalizing uncertain responses can only be addressed through a socio-technical mitigation: modifying the scoring of existing benchmarks that are misaligned but dominate leaderboards, rather than introducing additional hallucination evaluations. This change may steer the field toward more trustworthy AI systems.

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Code Implementations(1)

MIT

AI output validation framework based on 'Why Language Models Hallucinate' paper. Detects unsupported claims, quantifies hallucination risk. McKinsey/BCG-aligned.

00Shell, PythonSep 21, 20251 years agoMIT

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Cite this paper

@article{kalai2025language,
  title  = {Why Language Models Hallucinate},
  author = {Adam Tauman Kalai and Ofir Nachum and Santosh S. Vempala and Edwin Zhang},
  year   = {2025},
  eprint = {2509.04664},
  archivePrefix = {arXiv},
  url    = {http://arxiv.org/abs/2509.04664v1}
}

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