AI Hallucination & Algorithm Bias

Is AI Lying to You?

For the purposes of this article, the term “AI” refers to large language models such as ChatGPT, Grok, or Gemini.

By now, you probably know what AI is. Generative AI tools are helpful resources that can provide quick information and solutions for everyday problems. On the surface, that sounds great—but if you want to use AI responsibly, it’s important to understand that blindly trusting it is not the answer. To recognize the truth behind AI’s “lies,” you first need to learn two key terms:

  • Hallucinations – when a large language model, such as a chatbot or computer vision tool, perceives patterns or objects that don’t exist, producing outputs that are nonsensical or inaccurate.
  • Algorithm Bias – when AI’s output is influenced by human bias embedded in the training data or coding of the system.

Now that you know these terms, let’s look at how to protect yourself from false information.

1. Why Does AI “Lie” to You?

AI is not sentient. No matter what your grandma thinks, it’s not plotting against humanity like in The Terminator. It cannot “lie” the way humans can—but it can misinterpret the data it’s trained on.

Take ChatGPT, for example. It’s trained on massive amounts of publicly available internet data, excluding harmful content filtered out by its developers, OpenAI. Unfortunately, some of this data is inaccurate, which can lead AI to produce hallucinations.

Here’s a simple example: suppose someone writes an article claiming that apples are not fruit but rocks instead. You know that’s false, but AI might treat it as true. So if you ask, “Are apples fruits?” the AI could respond that they’re rocks.

Even when the training data is mostly accurate, AI can still produce false information due to algorithm bias. If its programming “weighs” certain data more heavily—for example, valuing popularity over accuracy—AI could be swayed by false claims. If 100 people say apples are rocks and only one person says otherwise, AI might side with the false majority.

Finally, even if all the training data is correct, AI can still give you the wrong answer if it misunderstands your question. For instance, if you ask, “Are apples fruits?” it might respond by telling you about Tokangawhā / Split Apple Rock in New Zealand. While technically true, that doesn’t answer your question—and as you know, apples are fruit, not rocks.

2. How to fact-check AI

You might now be wondering, “How can I prevent AI from misleading me?” The best strategy is to use F.A.C.T.:

F – Find: Determine the source type and origin.
A – Author: Evaluate the author’s qualifications and background.
C – Cross-check: Validate claims against other reputable sources.
T – Trustworthiness: Look for bias, purpose, and objectivity.

3. Be forward-minded

Now you understand why AI sometimes “lies” to you—and how to avoid falling for it.

AI has advanced rapidly and will only continue to grow smarter and more efficient. Because of this, it’s essential to learn how to use it wisely—so it can expand your knowledge and education, not mislead you.


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