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The Smarter A.I. Gets, the More It Hallucinates, Harming Businesses

Summary by The Rio Times
Artificial intelligence drives business efficiency, but false outputs—hallucinations—erode trust. Industry data exposes a crisis as companies adopt AI universally. These errors disrupt operations. OpenAI’s o3 model fabricates answers 33% for public figure queries, while o4-mini reaches 48%. General knowledge tests show worse results: o3 hallucinates 51%, o4-mini 79%. These rates exceed o1’s 44%. Executives struggle […]

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The Rio Times broke the news in Brazil on Friday, May 23, 2025.
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