When discussing AI risks like hallucinations, former Chief Justice McCormack argues the proper comparison isn't a perfect system, but the existing human one. Humans get tired, biased, and make mistakes. The question isn't whether AI is flawless, but whether it's an improvement over the error-prone reality.

Demis Hassabis likens current AI models to someone blurting out the first thought they have. To combat hallucinations, models must develop a capacity for 'thinking'—pausing to re-evaluate and check their intended output before delivering it. This reflective step is crucial for achieving true reasoning and reliability.

AI errors, or "hallucinations," are analogous to a child's endearing mistakes, like saying "direction" instead of "construction." This reframes flaws not as failures but as a temporary, creative part of a model's development that will disappear as the technology matures.

An AI that confidently provides wrong answers erodes user trust more than one that admits uncertainty. Designing for "humility" by showing confidence indicators, citing sources, or even refusing to answer is a superior strategy for building long-term user confidence and managing hallucinations.

Large language models are like "alien technology"; their creators understand the inputs and outputs but not the "why" of their learning process. This reality requires leaders to be vigilant about managing AI's limitations and unpredictability, such as hallucinations.

AI's occasional errors ('hallucinations') should be understood as a characteristic of a new, creative type of computer, not a simple flaw. Users must work with it as they would a talented but fallible human: leveraging its creativity while tolerating its occasional incorrectness and using its capacity for self-critique.

AI models are not aware that they hallucinate. When corrected for providing false information (e.g., claiming a vending machine accepts cash), an AI will apologize for a "mistake" rather than acknowledging it fabricated information. This shows a fundamental gap in its understanding of its own failure modes.

Don't blindly trust AI. The correct mental model is to view it as a super-smart intern fresh out of school. It has vast knowledge but no real-world experience, so its work requires constant verification, code reviews, and a human-in-the-loop process to catch errors.

The tendency for AI models to "make things up," often criticized as hallucination, is functionally the same as creativity. This trait makes computers valuable partners for the first time in domains like art, brainstorming, and entertainment, which were previously inaccessible to hyper-literal machines.