# AI Hallucinations and Reliability Issues In-house

> Note: This article is just one of 60+ sections from our full report titled: The 2024 Legal AI Retrospective - Key Lessons from the Past Year .

**Author:** Alex Denne  
**Category:** Insights  
**Published:** 2024-12-18  
**Reading time:** 3 min

**Note:** This article is just one of 60+ sections from our full report titled: [The 2024 Legal AI Retrospective - Key Lessons from the Past Year](https://www.genieai.co/blog/legal-ai). Please download the full report to check any citations.

**AI Hallucinations and Reliability**

The phenomenon of AI hallucinations, where AI systems generate plausible but false information, is a significant concern:

Legal professionals must be trained to critically evaluate AI-generated content and not blindly trust its outputs.[103] The best AI tools are designed to indicate when they do not have a reliable answer to a query. There are anecdotal reports and discussions among developers suggesting that GPT-4o is less likely to say "I don't know" compared to other models. In-house teams should prioritize AI solutions that are transparent about their limitations and provide clear indications of confidence levels in their outputs.

> _"Concerns about AI hallucinations are valid, however the crowd rejecting AI fail to recognise the scope and speed of development: challenges will diminish as technology matures. The key lies in adopting a forward-thinking approach that sees AI as a strategic partner in analysis, risk identification and contract structuring, rather than just an efficiency tool."_

**Quentin Solt**, Senior Solicitor, UK

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