In a paper published earlier this month, OpenAI researchers said they’d found the reason why even the most powerful AI models still suffer from rampant “hallucinations,” in which products like ChatGPT confidently make assertions that are factually false. Even if ChatGPT admitted that it doesn’t know the answer just 30 percent of the time, users could quickly become frustrated and move on, Xing argued. How all of this will play out in the long term is anybody’s guess, especially as market forces continue to shift and companies find more efficient ways to run their AI models. “The business incentives driving consumer AI development remain fundamentally misaligned with reducing hallucinations.”“Until these incentives change, hallucinations will persist,” he added. More on hallucinations: OpenAI Realizes It Made a Terrible Mistake