Why do LLMs hallucinate? How do you prevent it?

Large Language Models (LLMs) are often criticized for producing "hallucinations," or outputs that do not align with observable truths, but these are essentially mistakes that can be managed through strategies similar to those used for software bugs or human errors. The article argues that the term "hallucination" is misleading and emphasizes that LLMs, like any software or human system, are not infallible. To build resilient LLM-powered systems, it is recommended to add context to queries, use multi-head supervision for verification, label outputs to indicate uncertainty, apply output constraints, and specialize models through training. These approaches aim to minimize errors and enhance reliability, much like improving human teams or traditional systems. The integration of LLMs into organizational processes requires the application of traditional design methods, resilience mechanisms, and continuous improvement to fully leverage their capabilities.