AI Hallucinations: Causes, Enterprise Risks, and How to Eliminate Them
A technical and legal analysis of how LLM hallucinations jeopardize corporate contract validity and how Zentratto's RAG technology ensures maximum reliability.
The Operational Context
LLMs are designed to generate statistically probable text, not to retrieve facts. When data is missing, they invent plausible information (hallucinations) that can appear true.
Enterprise Risks
n legal and enterprise contexts, a hallucination can lead to signing invalid contracts, facing sanctions for EU AI Act violations, and losing data traceability.
The AiChain Solution
Zentratto eliminates hallucinations by limiting the AI to a closed and verified knowledge perimeter, where every response must mandatorily cite the exact source.
Closed Knowledge Perimeter: answers based only on private databases.
Mandatory Source Citation: exact reference to page and paragraph.
Confidence Thresholding: blocking speculative low-confidence responses.
Blockchain Audit Trail: immutable notarization of every query and response.