Hallucination (AI)

In recruiter context

Hallucination is the single biggest production-AI risk in 2026 and the topic AI Engineer interviewers test most often. The four levers for managing it: (1) structured output to constrain what the model can say; (2) RAG to ground generation in retrieved context; (3) post-generation verification, either rule-based or via a judge model; (4) UI design that flags low confidence and lets users verify. The right mix depends on the feature — medical-information features need all four; creative-writing features can ship with almost none. Strong AI Engineers measure hallucination rate explicitly via labelled eval sets rather than waiting for user reports.