The Hallway Track
Engineering Insights

What are AI 'hallucinations' and can we fix LLMs so that they don't happen?

Microsoft Developer (Build) · Jun 29, 2026 · Engineering Insights

LLM hallucinations stem from their probabilistic next-token nature and cannot be fully eliminated, only mitigated.

“This minimizes hallucination, but it doesn't eliminate it.”

A Microsoft Build talk explains that hallucinations arise because LLMs are stochastic systems predicting next tokens with no inherent sense of accuracy. It notes that RAG reduces but cannot eliminate hallucinations, since context can itself be irrelevant or incorrect. The piece is a clear explainer but contains no new announcement or research finding.

hallucinations LLM-limitations RAG AI-fundamentals

Watch / read the original source →