In the context of generative AI, the term "hallucinations" refers to the generation of fabricated information. Which of the following scenarios best illustrates the potential risks associated with this phenomenon?

A generative model accurately generates a fictional story based on user prompts, without any factual errors.
An AI system misattributes an invention to the wrong individual, leading to a public relations issue for a tech company.
A generative AI chat interface provides consistent and accurate medical advice to users, enhancing their understanding of health issues.
A corporate training program uses AI-generated content that perfectly aligns with the company’s established guidelines.
Verified Answer
Correct Option - b

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