Are 'Smarter' AI Chatbots Actually Getting Dumber? The Troubling Rise of Hallucinations

Are 'Smarter' AI Chatbots Actually Getting Dumber? The Troubling Rise of Hallucinations
Photo by Google DeepMind / Unsplash

AI’s Knowledge Crisis: When Upgrades Make Things Worse
Tech giants like OpenAI and Google have been racing to boost their chatbots’ reasoning skills, promising more trustworthy answers. But there’s a catch: these "upgraded" models are increasingly making up facts, missing context, and ignoring instructions—a problem called hallucination. Shockingly, newer models are performing worse than their predecessors. Let’s dive in.


🤯 The Hallucination Epidemic: By the Numbers
Recent data reveals a counterintuitive trend—the smarter AI gets, the more it invents:

  • OpenAI’s April 2024 o4-mini model hallucinated 48% of the time when summarizing public facts—triple the 16% rate of its late 2023 o1 predecessor
  • Vectara’s industry analysis found reasoning-focused models like DeepSeek-R1 saw double-digit percentage jumps in hallucination rates
  • Hallucinations now include both factual errors (false claims) and contextual failures (accurate but irrelevant)

Why? Reasoning upgrades force models to chain complex logic steps—each a potential error source. Like a student overcomplicating a math problem, they prioritize "smart-sounding" answers over accuracy.


✅ The Fixes: What Tech Giants Are Trying
Companies are deploying three main strategies to curb hallucinations:

  1. Retrieval-Augmented Generation (RAG)
    Systems like Google’s Gemini cross-check responses against verified databases before answering
  2. Human Feedback Loops
    OpenAI uses thousands of human raters to flag hallucinations in GPT-4 outputs
  3. Transparency Layers
    Anthropic’s Claude highlights uncertain claims with phrases like "Based on my training data..."

Feasibility Check: While RAG shows promise (40% error reduction in early tests), it’s massive infrastructure costs. Human oversight scales poorly for global chatbot usage.


man wearing red hoodie
Photo by sebastiaan stam / Unsplash

🚧 Why Hallucinations Might Be Here to Stay
Three fundamental roadblocks:

  • ⚠️ LLMs Aren’t Fact Engines
    They predict text patterns, not truth—a core design limitation
  • ⚠️ The Scaling Paradox
    Bigger models handle nuance better but have more "creative" pathways to errors
  • ⚠️ User Trust Erosion
    48% of professionals in a 2024 Stanford study distrusted AI tools after spotting hallucinations

🚀 Final Thoughts: A New Era of Cautious AI Adoption
The path forward requires:

  • 📉 Accepting hallucinations as inherent to current LLM design
  • ✅ Prioritizing hybrid human-AI systems for critical tasks
  • 🚀 Developing clear user guidelines (e.g., "Verify medical advice")

As these tools grow more embedded in our lives, one question remains: Would you trust a chatbot that’s 10x more articulate but twice as prone to fabrication?

Let us know on X (Former Twitter)


Sources: New Scientist. AI hallucinations are getting worse and they’re here to stay, 2024. https://www.newscientist.com/article/2479545-ai-hallucinations-are-getting-worse-and-theyre-here-to-stay/

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