Calibrated Trust in Dealing with LLM Hallucinations: A Qualitative Study

Hallucinations are outputs by Large Language Models (LLMs) that are factually incorrect yet appear plausible [1]. This paper investigates how such hallucinations influence users' trust in LLMs and users' interaction with LLMs. To explore this in everyday use, we conducted a qualitative study with 192 participants. Our findings show that hallucinations do not result in blanket mistrust but instead lead to context-sensitive trust calibration. Building on the calibrated trust model by Lee & See [2] and Afroogh et al.'s trust-related factors [3], we confirm expectancy [3], [4], prior experience [3], [4], [5], and user expertise & domain knowledge [3], [4] as userrelated (human) trust factors, and identify intuition as an additional factor relevant for hallucination detection. Additionally, we found that trust dynamics are further influenced by contextual factors, particularly perceived risk [3] and decision stakes [6]. Consequently, we validate the recursive trust calibration process proposed by Bl"obaum [7] and extend it by including intuition as a user-related trust factor. Based on these insights, we propose practical recommendations for responsible and reflective LLM use.