AI is aware of all of it — however what occurs when it makes it up?
I keep in mind analysis analysts being probably the most pissed off group again in November 2022 when ChatGPT exploded onto the tech scene. They had been being requested to experiment with and use AI of their workflows, but it surely didn’t take lengthy for them to come across a significant stumbling block. In any case, would you threat your profession and credibility over a brand new expertise fad?
Whereas content material creators like myself, knowledge scientists, and engineers had been thriving with AI adoption, we may solely empathize with our analysis analyst friends as we partnered with them to seek out new methods to make OpenAI, Gemini, Langchain, and Perplexity cater to their necessities. Everybody tried constructing belief in AI as we placed on our researcher hats.
However quickly, the consensus was that AI hallucinations had been an issue for information staff, whether or not you had been a researcher, content material creator, developer, or a enterprise chief.
Quick ahead to 2025, and regardless of all of the developments in AI, hallucinations haven’t disappeared. Whereas firms like Anthropic, OpenAI, and NVIDIA are pushing the boundaries of AI reasoning fashions, the ghost of hallucinations nonetheless lingers. Our newest G2 LinkedIn ballot reveals that just about 75% of pros have skilled AI hallucinations, with over half (52%) saying they’ve skilled AI hallucinations a number of instances.
These new developments may promise smarter, sooner, and extra dependable AI, however the query stays — are they robust sufficient to maintain hallucinations at bay?
Let’s take a more in-depth take a look at the newest AI LLM updates shaping the {industry}:
A timeline of key AI LLM mannequin updates in 2025
- February 24, 2025: Anthropic launched Claude 3.7 Sonnet, the world’s first hybrid reasoning AI mannequin to boost and increase output limits
- February 27, 2025: OpenAI unveiled GPT-4.5 Orion, integrating varied applied sciences right into a unified mannequin for streamlined AI purposes
- March 18, 2025: NVIDIA introduced the open Llama Nemotron household of fashions with reasoning capabilities to empower enterprise
- March 20, 2025: At GTC 2025, NVIDIA launched NVIDIA Dynamo, an open-source software program designed to speed up and scale AI reasoning fashions in AI factories
Hallucinations, the ‘Reply Economic system’, and real-world challenges
As AI fashions evolve with new capabilities, the way in which we work together with data can also be remodeling. We’re witnessing the rise of a mega-trend that our very personal Tim Sanders calls the “Reply Economic system.” Individuals are transitioning from search-based analysis to an answer-driven fashion of studying, shopping for, and dealing.
However there’s a catch in all of this. AI chatbots appear to be delivering on the spot, assured responses — even after they’re mistaken. And regardless of accuracy issues, these AI-generated solutions are influencing choices throughout industries. This shift poses a crucial query: are we too fast to just accept AI’s responses as reality, particularly when the stakes are excessive? How robust is our belief in AI?
Whereas AI chatbots are shaking up search and AI firms are leaping in the direction of agentic AI, how robust are their roots when hallucinations hang-out? AI hallucinations may be as trivial as Gemini telling individuals to eat rocks and glue pizza. Or as large as fabricating claims like those under.
AI hallucinations: a timeline of authorized challenges
- January 6, 2025: An AI professional’s testimony was challenged in court docket for counting on AI hallucinated citations in a deepfake-related lawsuit, elevating issues in regards to the credibility of AI-generated proof
- February 11, 2025: Legal professionals in Wyoming confronted potential sanctions for utilizing AI-generated fictitious citations in a lawsuit in opposition to Walmart, highlighting the dangers of counting on hallucinated knowledge in authorized filings
- March 20, 2025: OpenAI confronted a privateness criticism in Europe after ChatGPT falsely accused a Norwegian particular person of homicide, elevating issues about reputational injury and GDPR violations
There have been a number of different notable AI hallucination mishaps in 2024 involving manufacturers like Air Canada, Zillow, Microsoft, Groq, and McDonald’s.
So, are AI chatbots making life simpler or simply including one other layer of complexity for companies? We combed by G2 opinions to uncover what’s working, what’s not, and the place the hallucinations hit hardest.
Greater than your common e-newsletter.
Each Thursday, we spill sizzling takes, insider information, and information recaps straight to your inbox. Subscribe right here
The G2 take
A fast comparability of ChatGPT, Gemini, Claude, and Perplexity exhibits ChatGPT because the chief at a look, with an 8.7/10 rating. Nevertheless, a more in-depth look reveals that Gemini leads when it comes to reliability — by a slim margin.
Supply: G2.com
Whereas ChatGPT has larger capabilities of studying from consumer interactions to scale back errors and perceive context, Perplexity and Gemini beat it at content material accuracy with an 8.5 rating.
Supply: G2.com
Practically 35% of opinions spotlight the accuracy hole
These AI chatbots are being utilized in small companies, SMEs, and enterprises by every kind of pros — analysis analysts, advertising leaders, software program engineers, tutors, and many others. And a deep dive into G2 overview knowledge reveals a obtrusive development: inaccuracy stays a shared concern throughout the board.
We will’t assist however discover that, proper off the bat, a mean of ~34.98% of opinions have issues about inaccuracy, context understanding, and outdated data.
Supply: Unique G2 Information
Customers aren’t shy about flagging their frustrations. Out of the tons of of opinions, accuracy issues topped the checklist of cons:
- ChatGPT: 101 mentions of inaccuracy, with outdated data including to the frustration
- Gemini: 33 cases of inaccurate responses, compounded by 26 complaints about context understanding
- Claude: Fewer studies, however with seven accuracy points and 5 issues about recognition
- Perplexity: Whereas boasting fast insights, it wasn’t immune — customers identified seven limitations associated to AI accuracy
Whereas China’s DeepSeek has turned heads and wreaked inventory market havoc as a result of its velocity and cost-saving go-to-market (GTM) product, it doesn’t have a particular (and dare we are saying authorized sufficient) presence within the USA for legitimate issues over security and potential knowledge siphoning. Speculations round its reliability outweigh the attract of affordability.
Our VP of Insights, Tim Sanders, referred to as it out for its hallucination fee in a latest interview.
“DeepSeek’s R1 has an 83% hallucination fee for analysis and writing, which is far larger than the ten% hallucination fee of different AI platforms.”
Tim Sanders
VP of Analysis Insights at G2
Gemini: The ironic productiveness booster for analysis analysts
We famous a number of analysis analysts use Gemini. Some notably desire the analysis mode and use it for educational and market analysis.
“Each day use, notably in love with analysis mode. Gemini’s velocity enhances the browsing expertise total, particularly for individuals who use the web for intensive analysis and work duties or who multitask.”
Elmoury T.
Analysis Analyst
However right here’s the twist: analysis analysts aren’t raving about Gemini for its analysis reliability. As an alternative, it’s the seamless connectivity to Google’s suite of instruments and customizable consumer expertise that steals the highlight. Productiveness boosts, streamlined workflows, and smoother process administration? Completely. Trusting it for rigorous analysis? Not a lot.
Whereas Gemini’s analysis mode aggregates data from the web, accuracy and fact-checking aren’t making the headlines. Reminiscence administration points and sluggish efficiency additionally maintain it from being a real analysis powerhouse.
ChatGPT: energy participant with precision pitfalls
From code era to market analysis, ChatGPT has turn out to be a every day go-to for professionals to brainstorm, generate content material rapidly, and reply advanced questions. But, accuracy issues persist.
Geopolitical subjects and nuanced analysis typically result in deceptive outcomes. Context understanding is strong, however misinformation and hallucinations nonetheless plague customers.
Consumer opinions reward ChatGPT’s polished tone and contextual understanding, however this confidence typically masks the occasional hallucination. Customers highlighted its tendency to supply plausible-sounding however inaccurate data, particularly in advanced or nuanced situations like geopolitics. It’s a textbook case of “sounding good however not at all times being proper.”
Paid account customers are impressed with its new multimodal inputs, voice interactions, and reminiscence retention but in addition spotlight its limitations in knowledge evaluation, picture creation, and total accuracy.
Total, paid customers discover the product expensive in comparison with different free alternate options accessible available in the market owing to ChatGPT’s server down time and accuracy points.
Supply: G2.com Evaluations
Supply: G2.com Evaluations
G2 opinions additionally surfaced how customers undergo back-and-forth with ChatGPT to get their desired outcomes. At instances, customers ran out of allotted tokens rapidly, leaving their queries unhappy.
Supply: G2.com Evaluations
However for some customers, the advantages far outweigh the pitfalls. For example, in industries the place velocity and effectivity are essential, ChatGPT is proving to be a game-changer.
G2 Icon use case
Peter Gill, a G2 Icon and freight dealer, has embraced AI for industry-specific analysis. He makes use of ChatGPT to investigate regional produce traits throughout the U.S., figuring out the place seasonal peaks create alternatives for his trucking providers. By lowering his weekly analysis time by as much as 80%, AI has turn out to be a crucial software in optimizing his enterprise technique.
“Historically, my weekly analysis may take me over an hour of guide work, scouring knowledge and studies. ChatGPT has slashed this course of to only 10-Quarter-hour. That’s time I can now put money into different crucial areas of my enterprise.”
Peter Gill
G2 Icon and Freight Dealer
Peter advocates that AI’s advantages lengthen far past the logistics sector, proving to be a robust ally in immediately’s data-driven world.
Perplexity: velocity meets smarts — with a facet of stumbles
Perplexity’s exterior net search functionality and speedy updates have earned it a strong fanbase amongst researchers. Customers reward its capacity to supply complete, context-aware insights. The frequent integration of the newest AI fashions ensures it stays a step forward.
But it surely’s not all sunshine and summaries. Customers flagged points with knowledge export, making it tougher to translate insights into actionable studies. Minor UX enhancements may additionally considerably elevate its consumer expertise.
Michael N., a G2 reviewer and head of buyer intelligence, acknowledged that Perplexity Professional has reworked how he builds information.
Supply: G2.com Evaluations
“Simplest way of conducting tiny and sophisticated analysis with correct prompting.”
Enterprise leaders and CMOs like Andrea L. are utilizing completely different AI chatbots to both complement, complement, or full their analysis.
G2 Icon use case
Luca Piccinotti, a G2 Icon and CTO at Studio Piccinotti, makes use of AI to navigate advanced market dynamics. His group makes use of AI to course of huge quantities of knowledge from surveys, social media, and buyer suggestions for sentiment evaluation, serving to them gauge public opinion and spot rising traits. AI additionally streamlines their survey workflows by automating query era, knowledge assortment, and evaluation, making their analysis extra environment friendly.
To translate insights into actionable methods, Luca depends on predictive analytics to forecast client conduct, monitor opponents, and personalize advertising campaigns. His most popular AI instruments? Perplexity for analysis and ChatGPT for managing and refining the information.
“Perplexity is our trusted companion for analysis functions, whereas we use ChatGPT for managing the obtained knowledge. We additionally use further instruments and wrappers, API, native fashions and many others. However the unbeatable ones are Perplexity and ChatGPT at this second.”
Luca Piccinotti
G2 Icon and CTO at Studio Piccinotti
Claude: a reasonably trustworthy, human-like, data-deficient counterpart
Claude’s conversational tone and contextual understanding shine by in opinions. Customers respect its willingness to confess when it doesn’t know one thing fairly than hallucinating a response. That degree of transparency builds belief.
Nevertheless, restricted coaching knowledge and functionality gaps in comparison with opponents like ChatGPT stay areas for enchancment. And whereas its strengths lie in conversational accuracy, its structured knowledge evaluation remains to be a piece in progress.
Not like most AI chatbots that confidently present incorrect solutions, Claude customers respect its transparency when it doesn’t know one thing. This “honesty over hallucination” strategy is a singular promoting level, making it a most popular alternative for customers who worth dependable suggestions over speculative responses.
Supply: G2.com Evaluations
Nevertheless, customers additionally expressed frustrations round Claude’s skilled mode, citing its utilization bandwidth and lack of customer support.
Supply: G2.com Evaluations
Verdict: AI for analysis — yay or nay?
It’s a cautious yay — which remains to be higher than the basic “it relies upon”.
AI chatbots are undeniably priceless analysis instruments, particularly for dashing up data gathering and summarizing. However they’re not flawless.
4 key takeaways
Hallucinations, accuracy points, and inconsistent reliability stay challenges.
- Gemini may be your productiveness sidekick, simply not your analysis fact-checker should you’re a analysis analyst who values integration and productiveness over pinpoint accuracy.
- ChatGPT is a productiveness booster for fast analysis duties, however fact-checking stays a should, even should you’re paying a bomb for the paid subscription.
- Perplexity is a dependable information companion for researchers who worth velocity and cutting-edge AI.
- Claude is the selection for these in search of trustworthy, human-like responses, however don’t anticipate it to crunch advanced datasets.
My tried-and-tested prompting hacks to keep away from AI hallucinations
- Immediate construction = Be exact + give context + specify what you need the specified consequence to be + warn it about what its output shouldn’t have + share an instance if attainable
- Use a immediate that calls on AI’s chain-of-thought reasoning to verify accuracy and establish hallucinations. Ask the AI chatbot: “Break down the steps you adopted to supply this output. Additionally, are you able to clarify your rationale for doing so?”
- Use templatization and observe organization-wide tips on utilizing AI chatbots and LLMs for work
- People within the loop stay vital, particularly in high-stakes environments like authorized analysis, market analysis, medical analysis, monetary analysis, and many others.
- At all times confirm and cross-check sources. We all know life will get busy, however a fast verify is at all times cheaper than a lawsuit!
Hallucinate much less, confirm extra: keep away from the AI tunnel imaginative and prescient lure
Anticipate AI fashions to double down on accuracy and transparency. Advances in multimodal AI and retrieval-augmented era (RAG) may scale back hallucinations. Perplexity, OpenAI, Google, and Anthropic now have their very own AI search capabilities, which is able to plug into real-time consumer knowledge to sharpen the accuracy and relevance of outputs.
Regardless that newer fashions like DeepSeek R1 are being constructed at one-tenth the price of main opponents, its trustworthiness will decide its destiny within the world market.
Ultimately, AI chatbots and LLMs are your analysis sidekick, not your fact-checker. Use them correctly, query relentlessly, and let the information — not the chatbot — prepared the ground.
Loved this deep-dive evaluation? Subscribe to the G2 Tea e-newsletter immediately for the most popular takes in your inbox.
Edited by Supanna Das
