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How to Stop Hallucinations in LLMs

Hallucination Types

TypeExample
FabricationFake facts
Citation hallucinationFake references
Logical hallucinationBroken reasoning
Context hallucinationIgnoring retrieved docs

Root Causes

  • Weak retrieval
  • Poor prompts
  • Insufficient context
  • Model limitations
  • Overcompression

Techniques to Reduce Hallucinations

RAG

Most important method.

Injects:

  • Ground truth
  • Enterprise documents
  • Real-time knowledge

Hybrid Retrieval

Dense + sparse retrieval.

Improves factual grounding.


Reranking

Ensures highest relevance documents used.


Query Rewriting

LLM rewrites ambiguous queries.

Improves retrieval quality significantly.


Context Compression

Remove noisy chunks before generation.


Chain of Verification

Second model verifies claims.

Architecture:

Generator → Verifier → Final Answer


Self Reflection

Models critique their own answers.

Common in agentic systems.


Structured Outputs

Force:

  • JSON
  • Schemas
  • SQL-safe outputs

Reduces uncontrolled generation.


Temperature Reduction

Lower temperature:

  • More deterministic
  • Fewer hallucinations

Fine-Tuning on Domain Data

Specialized domain tuning reduces uncertainty.


Grounded Generation

Prompt example:

Answer ONLY using provided context.

If unavailable, say “I don’t know.”

Simple but highly effective.


Human-in-the-loop

Critical for:

  • Healthcare
  • Finance
  • Legal systems

Hallucination Detection Models

Emerging area.

Specialized models detect:

  • Unsupported claims
  • Contradictions
  • Fake citations

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