AI Hallucination

AI hallucination occurs when a language model generates a response that sounds convincing but is factually incorrect or entirely made up. This happens because the model predicts language patterns, not necessarily verified truth.

For customer service, this is a serious risk: a chatbot that "invents" a wrong return policy or a non-existent feature can mislead customers and damage trust in your brand.

Bugalou's AI Agent is designed to strictly base answers on your own knowledge base and to honestly admit when it's unsure of an answer, rather than guessing — with a seamless handoff to an agent when needed.