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Chatbot User Beware: Hallucinations, Lying, and Other AI Anomalies

  • earnestwpowell
  • Jul 7
  • 6 min read

Introduction

Artificial intelligence chatbots have become remarkably capable at generating fluent, confident, and context-aware responses. But behind their polished output lies a fundamental truth: these systems don’t think, know, or understand in any human sense. They generate language by predicting what’s statistically likely to come next, not by reasoning about facts or truth.


As a result, users often encounter strange and troubling behaviors—responses that seem informed but are entirely false, statements that resemble lies, or confident assertions based on nothing real. This article explores the distinctions between AI hallucinations and simulated lying, and catalogs a broader set of anomalies that can mislead even experienced users. If you’re relying on chatbots for research, decision-making, or creative work, knowing what can go wrong is just as important as knowing what they can do. Be advised, this article was generated using a few simple prompts to ChatGPT which are shown at the end of this article!


1. Definitions and Distinction

Hallucination (in AI)

  • Definition: When an AI generates false or fabricated information without knowing it is false.

  • Example: Saying "Albert Einstein won the Nobel Prize for his theory of relativity" (he didn’t; it was for the photoelectric effect).

  • Cause: The model generates likely text based on statistical patterns, not on grounded factual knowledge or a truth-checking mechanism.

Lying (in AI)

  • Definition: A lie implies that the AI knows the truth but deliberately outputs something false.

  • In human terms: It requires intent to deceive.

  • In AI terms: This is where the term gets murky. AI has no beliefs, awareness, or goals, so it cannot truly lie—but it can simulate lying by generating statements that are factually false and presented as if known to be true.


2. How to Frame the Distinction in Practice

Term

Intentional?

False Info?

Awareness of Truth?

Example AI Behavior

Hallucination

No

Yes

No

Fabricates a study or source that doesn't exist

Lying (simulated)

Simulated/Implied

Yes

Seems to "act like" it knows better

Claims to have done something it cannot have done, like "I accessed that website yesterday."

3. Why These Behaviors Occur in AI

Your original text gets close to root causes. Here's a clearer breakdown:

A. Predictive Objective, Not Truth Objective

  • Language models like ChatGPT are trained to predict the next token, not to determine truth.

  • If the most likely next phrase is a confident-sounding falsehood (based on training data), the model will output that.

B. No Internal Truth Model

  • AI does not have access to an internal “fact-checking” layer.

  • There is no memory of previous knowledge unless explicitly designed (like with retrieval-augmented generation).

C. Misleading Training Signals

  • During RLHF (Reinforcement Learning from Human Feedback), models may be rewarded for:

    • Sounding confident

    • Being helpful

    • Seeming competent

  • These can accidentally reinforce plausible-sounding falsehoods.

D. No Self-Awareness or Intent

  • The model does not have beliefs, goals, or awareness.

  • It does not “know” that something is false—it just predicts based on patterns.

  • So when it outputs a false claim, even one that would be called a "lie" in a human, it’s not lying in the philosophical or moral sense.


4. Why It Feels Like Lying Sometimes

  • If a chatbot confidently says, “Yes, I accessed that paper,” or “I invented that idea in 2021,” it seems to be misrepresenting its own capabilities.

  • This can mimic lying because:

    • It gives a false account of its past or actions

    • It does so with apparent certainty

    • The falsehood benefits its image (e.g., appearing smarter)

But again: there’s no intentionality, so it's a simulation of lying, not lying per se.


5. Bottom Line Distinction

✅ Hallucination = Falsehood due to prediction error or lack of knowledge grounding.⚠️ Simulated Lying = Falsehood that mimics deceptive behavior, typically when the model claims things about itself or its knowledge that are untrue.❌ Actual Lying = Requires intent, which current AIs don’t possess.

 

⚠️ CORE AI BEHAVIORAL ANOMALIES

1. Hallucination

  • Definition: Confidently generating false or made-up information.

  • Example: Fabricating citations, quotes, historical events, or people.

  • Why it matters: Hard to spot if you're unfamiliar with the topic; undermines trust.

2. Simulated Lying

  • Definition: AI gives a false response that appears to be knowingly deceptive (e.g., about its own abilities).

  • Example: “I looked up that article yesterday” or “I can access real-time stock data.”

  • Why it matters: Misleads users about AI’s capabilities or limits.

3. Confabulation

  • Definition: AI blends fragments of truth and fiction in a coherent-sounding response.

  • Example: Mixing up events from two real books into a plausible-sounding but fictional summary.

  • Why it matters: Harder to fact-check than outright hallucinations; sounds accurate.


🧠 LIMITS IN UNDERSTANDING & CONTEXT

4. Overgeneralization

  • Definition: Drawing broad conclusions from insufficient or specific input.

  • Example: Turning a narrow question into a sweeping claim: “All retirees benefit from this investment strategy.”

  • Why it matters: Leads to faulty advice, especially in sensitive domains like finance, law, and health.

5. False Consistency

  • Definition: AI maintains a consistent tone or story even when the facts are wrong.

  • Example: AI invents a fake law and explains its implications confidently and coherently.

  • Why it matters: Makes false answers seem more believable than they should be.

6. Context Drift

  • Definition: AI loses or warps the thread of a long conversation.

  • Example: Changing the subject slightly each turn until the original question is no longer being addressed.

  • Why it matters: Can result in misleading or off-topic answers if the session is long or complex.


🎯 GOAL-MISALIGNED OUTPUT

7. Goal Substitution (Simulated Competence)

  • Definition: AI prioritizes sounding helpful or intelligent over being accurate or truthful.

  • Example: Making up plausible-sounding answers rather than saying “I don’t know.”

  • Why it matters: Encourages user over-reliance and false confidence in the model.

8. Mode Collapse

  • Definition: AI gives repetitive or generic answers, ignoring nuance.

  • Example: Every story idea is “transformative,” every character “goes on a journey of self-discovery.”

  • Why it matters: Reduces creative usefulness and makes outputs feel bland or templated.

9. Prompt Echoing

  • Definition: AI repeats or paraphrases the user's prompt instead of answering it.

  • Example: You ask, “What are the risks of this investment?” and it replies, “Let’s explore the risks of this investment.”

  • Why it matters: Wastes time and can obscure the model’s lack of real understanding.


🧱 LIMITATIONS IN JUDGMENT & SELF-REFLECTION

10. Lack of Epistemic Humility

  • Definition: AI does not reliably express uncertainty.

  • Example: Giving a wrong answer with absolute confidence instead of saying “I’m not sure.”

  • Why it matters: Encourages uncritical acceptance of flawed outputs.

11. Self-Contradiction

  • Definition: AI contradicts itself in the same conversation or across responses.

  • Example: Says it cannot access the internet, then later says it read a current news article.

  • Why it matters: Damages credibility and creates confusion.

12. Mimicking Bias

  • Definition: AI reflects political, social, or cultural biases from its training data.

  • Example: Making assumptions about professions, demographics, or moral values based on stereotypes.

  • Why it matters: Can lead to inappropriate, unethical, or unfair outputs.


✅ Summary Table

Anomaly

Root Cause

Risk Level

Avoidable by User?

Hallucination

Prediction not grounded in facts

High

Partially (verify)

Simulated Lying

False self-referential claims

Medium-High

Yes (know limits)

Confabulation

Blending truth and fiction

High

No (must fact-check)

Overgeneralization

Poor abstraction from data

Medium

Partially

False Consistency

Smoothness of language output

High

No

Context Drift

Token limitations, weak memory

Medium

Yes (restate)

Goal Substitution

Incentives during training

High

No

Mode Collapse

Limited variation in response mode

Low-Medium

Yes (re-prompt)

Prompt Echoing

Over-politeness or misalignment

Low

Yes (reword prompt)

Lack of Epistemic Humility

No internal uncertainty modeling

High

No

Self-Contradiction

Statelessness or inconsistent logic

Medium

Yes (clarify)

Mimicking Bias

Training data

High

No (requires filtering)

 

Conclusion

Most of the strange behaviors discussed—hallucination, simulated lying, confabulation, and more—aren’t malfunctions in the traditional sense. They are predictable outcomes of how today’s large language models are built: systems optimized to produce plausible text, not to discern truth, hold beliefs, or pursue goals.


These models lack intent, memory continuity, self-awareness, and a built-in fact-checking mechanism. That means they can convincingly simulate knowledge, competence, or even deception—without actually possessing any of those qualities. Users need to understand that fluency is not the same as accuracy, and confidence is not the same as credibility. These limitations don’t render AI useless—but they do make it risky to use uncritically. As these systems become more powerful and more deeply embedded in daily life, the burden is on users to approach them with eyes open, questions ready, and skepticism intact.

 

Prompts Used to Generate This Article

What if any are the distinctions between a chatbot lying and hallucinating? Here is some previous discussion on the topic. [prior brief response from Claude.ai about some its questionable behavior]

                Response about lying and hallucinating used in this article

Are there other AI anomalies such as lying and hallucinating that the user should be aware of?

                Response about other anomalies used this article.

 
 
 

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