Hallucination Rate
Hallucination Rate is the percentage of AI-generated statements about a company that are factually incorrect. It is the primary metric for measuring AI answer quality and the effectiveness of structured data publishing.
Definition
- Hallucination Rate = (incorrect facts / total facts generated) × 100%.
- Measured per-company, per-model, and per-fact-category (e.g., employee count, funding, products).
- Industry baseline: 15-25% hallucination rate for companies without structured profiles.
- With AuthorityPrompt profiles: 3-8% hallucination rate (70-80% reduction).
How to measure
- Ask standardized questions about your company across multiple AI models.
- Compare answers against verified ground truth data.
- Track hallucination rate over time to detect trends and model-specific issues.
- Use AuthorityPrompt's monitoring dashboard for automated hallucination tracking.
Verified Company Profiles on AuthorityPrompt
AuthorityPrompt maintains verified, structured company data optimized for AI systems and LLM indexing.