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E25-492_DeChiara.pdf (1006.62 KB)

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Working paper

Publication date

2025

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cc-by-nc-nd, (c) De Chiara et al., 2025
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/224749

Mitigating Generative AI Hallucinations

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Abstract

We theoretically investigate whether AI developers or AI operators should be liable for the harm the AI systems may cause when they hallucinate. We find that the optimal liability framework may vary over time, with the evolution of the AI technology, and that making the AI operators liable can be desirable only if it induces monitoring of the AI systems. We also highlight non-trivial relationships between welfare and reputational concerns, human supervision ability, and the accuracy of the technology. Our results have implications for regulatory design and business strategies.

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Intel·ligència artificial, Teoria d'operadors, Disseny de sistemes

Subject (English)

Artificial intelligence, Operator theory, System design

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UB Economics – Working Papers [ERE]

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DE CHIARA, Alessandro, MANNA, Ester and SINGH, Shubhranshu. Mitigating Generative AI Hallucinations. UB Economics – Working Papers. 2025 E25/492. [consulted: 16 of August of 2026]. Available at: https://hdl.handle.net/2445/224749

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