Hallucination

DEFINITION

Risk class 1 of the Risk Taxonomy 2026: the AI system generates content that is plausible and authoritative-sounding but factually wrong, including fabricated case citations, misattributed clauses, and regulatory summaries that diverge from primary sources. Addressed by decision traceability — the function must reconstruct, for any AI-assisted output of consequence, what the input was and which human reviewer validated each claim against primary sources.

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