Hallucination in AI refers to instances where artificial intelligence systems, such as chatbots or language models, generate information or responses that sound convincing but are factually incorrect, misleading, or entirely fabricated. This phenomenon occurs because AI models predict text based on patterns in their training data, not actual understanding or verification of facts. Hallucinations can pose risks in sensitive areas like cybersecurity, healthcare, and law, where accurate information is crucial. Recognizing and mitigating AI hallucinations is an ongoing challenge in the development of trustworthy AI systems.