An e-commerce company uses a foundation model to auto-generate product descriptions. Which inherent generative AI risk should they monitor because the model might confidently invent specifications that are not real?
Hallucinations
Latency
Token pricing
Interpretability
Hallucinations occur when a generative model produces content that sounds plausible but is not grounded in the underlying data or facts. In a retail context this could cause the system to fabricate features, leading to misleading product descriptions and potential brand or legal issues. Interpretability relates to understanding why the model produced an output, latency is a performance consideration, and token pricing concerns cost; none of these specifically refer to the risk of invented, erroneous content.
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