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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryAI in MarketingAI Hallucination

AI in Marketing

AI Hallucination

When an AI model states false or fabricated information as fact.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

An AI hallucination is when an AI model states false or fabricated information as if it were fact, such as invented statistics, quotes or product features. It happens because language models generate plausible text rather than verify truth. In marketing, fact-checking and grounding models in trusted sources help prevent inaccurate claims.