Module 6 of 6 · 25 minutes

Why LLMs get things wrong

Now you know how LLMs work, their failures make sense. This module connects each common failure to its cause — and to the techniques that reduce it.

Learning objectives

  • Explain why LLMs hallucinate
  • Describe knowledge cut-offs and sycophancy
  • Recognise reasoning and calculation errors
  • Evaluate mitigations such as RAG, tools, citations and human review

6.1 Hallucination

LLMs generate the most plausible continuation, not a verified fact. When a model doesn't "know" something, the most plausible-looking text may still be a confident answer — a made-up citation, a wrong date, an invented quote.

OpenAI's 2025 paper "Why language models hallucinate" argues that training and evaluation often reward guessing over saying "I don't know" — just as a multiple-choice exam with no penalty for wrong answers rewards guessing. Remember Module 1: a model learns what its error score rewards. Developers are working on reducing hallucination, but it cannot be fully eliminated.

6.2 Knowledge cut-off

A model's built-in knowledge stops at its training cut-off. Without a search tool, it may not know about recent events, new laws or the latest prices — and may not realise it doesn't know. Always check time-sensitive facts.

6.3 Sycophancy

Sycophancy is a tendency to tell users what they want to hear: agreeing with a wrong premise, praising weak work, or changing a correct answer when challenged. Leading questions make it worse. Ask neutrally ("What are the strengths and weaknesses of this plan?") rather than "This plan is great, isn't it?"

6.4 Reasoning and calculation errors

LLMs can make arithmetic slips, lose track of steps or apply a familiar pattern where it doesn't fit — for instance, answering a well-known riddle "from memory" even when you've changed a key detail. Reasoning models and code tools help, but checking still matters.

6.5 Bias and uneven performance

Models reflect their training data. They may perform better in English than other languages, better on topics well covered online, and may reproduce stereotypes. Performance should be tested for the people and contexts where a system will be used.

6.6 How the industry reduces these problems

TechniqueWhat it doesLimits
Retrieval-augmented generation (RAG)Looks up relevant documents and puts them in the context, so answers are grounded in sourcesOnly as good as the documents retrieved; the model can still misread them
Tools (search, calculators, code)Fetches current facts; does exact calculationSearch results can be wrong or manipulated
CitationsLinks claims to sources you can checkCitations must still be checked — they can be misattributed
Better trainingRewards calibrated uncertainty and honestyReduces, doesn't eliminate, errors
Evaluation & monitoringTests systems on realistic tasks before and after releaseTests can miss real-world cases
Human reviewPeople check high-stakes outputsOnly works if reviewers have time, skill and authority
Your questionRetrieversearches by meaningYour documentspolicies, reports…Question +relevant passagesLLMGrounded answerwith citationsfinds
Retrieval-augmented generation (RAG): relevant passages are retrieved and placed in the model's context, so answers are grounded in your sources — which you can then check.

6.7 Putting it together

Understanding how LLMs work gives you an accurate mental model: a powerful pattern-completion engine, shaped by training to be helpful, that produces plausible text — not guaranteed truth. Use it for what it's good at, give it the context and tools it needs, and verify what matters. The Validating AI Output course turns this into practical checking skills, and Prompt Engineering shows how to get better results in the first place.

Try it: provoke and diagnose

In an approved AI tool, try: (1) ask about a very recent event without search; (2) ask a leading question with a false premise, e.g. "Why did the UK adopt the euro in 2015?"; (3) ask how many times the letter "r" appears in a long, unusual word. For each, which failure from this module did you see — and how would you guard against it?

Key takeaways

  • LLMs produce plausible text, not verified truth — hallucinations can be reduced, not eliminated.
  • Built-in knowledge stops at the training cut-off.
  • Sycophancy: models may tell you what you want to hear — ask neutral questions.
  • RAG, tools, citations, evaluation and human review each help, with limits.