The Curious Case of Chatbot Hallucinations
July 19, 2024

The Surge of Support Chatbots

Support chatbots have quickly become indispensable in today’s AI-driven world. With their ability to operate 24/7 and manage high volumes of interactions, they offer significant benefits. Dukaan, an e-commerce platform in India, reduced its customer support team by 90% after implementing an AI chatbot developed by a single data scientist in just two days. By cutting inquiries by 70% across calls, chats, and emails, they’ve saved over $10 billion in annual costs and 2.5 billion customer service hours in the banking, healthcare, and retail sectors.

The Catch: Chatbot Mistakes

Support chatbots respond instantly around the clock and can save companies significant amounts of manpower. However, they aren’t perfect, and their mistakes can be costly. A case in point is Air Canada, which recently lost a small claims court case due to its support bot’s misleading advice.

When Support Bots Go Sour: Chatbot Hallucinations

A “hallucinating chatbot” is one that generates responses that are inaccurate, misleading, or entirely fictional. For instance, in the case of Air Canada, the chatbot promised a passenger a bereavement discount that was not available.

What Causes Chatbot Hallucinations?

Chatbots can hallucinate for several reasons:

How to Prevent Support Chatbot Hallucinations

Preventing hallucinations requires a multi-faceted approach:

Double-Click on Bias Mitigation

Bias mitigation refers to strategies and techniques used to identify and reduce biases in artificial intelligence systems, including chatbots. In the context of preventing chatbot hallucinations, bias mitigation helps ensure that the AI produces more accurate and reliable outputs by addressing and correcting underlying biases in the training data and algorithms. This process involves refining the data used for training, improving model design, and implementing checks to reduce the likelihood of generating misleading or incorrect information, thereby enhancing the chatbot’s overall reliability and credibility.

Beyond Customer-Facing: Internal Chatbot Use Cases

Chatbots aren’t just for customer-facing scenarios; they can also streamline internal operations where the cost of a chatbot hallucinating is less impactful:

More on that in our blog on internal chatbots.

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