# Hallucination Detection and Mitigation in Large Language Models

arXiv: https://arxiv.org/abs/2601.09929 · HTML: https://mlsanity.com/paper/2601.09929/

## Key facts

- Cited by 4 papers in the map (data through 14 Oct 2026).
- Placed in Hallucination detection and mitigation, one of 17 directions in LLM reasoning.
- Builds on 29 of its 43 references that are in the map.
- First posted on arXiv 14 Jan 2026.

## Placed in

- LLM reasoning / [Hallucination detection and mitigation](https://mlsanity.com/lr/hallucination-detection-and-mitigation/)

## Builds on (most cited first, 29 of 29)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [On Calibration of Modern Neural Networks](https://mlsanity.com/paper/1706.04599/) (2017)
- [Dropout as a Bayesian Approximation: Representing Model Uncertainty in Deep Learning](https://mlsanity.com/paper/1506.02142/) (2015)
- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)
- [Simple and Scalable Predictive Uncertainty Estimation using Deep Ensembles](https://mlsanity.com/paper/1612.01474/) (2016)
- [The Curious Case of Neural Text Degeneration](https://mlsanity.com/paper/1904.09751/) (2019)
- [What Uncertainties Do We Need in Bayesian Deep Learning for Computer Vision?](https://mlsanity.com/paper/1703.04977/) (2017)
- [Survey of Hallucination in Natural Language Generation](https://mlsanity.com/paper/2202.03629/) (2022)
- [Language Models (Mostly) Know What They Know](https://mlsanity.com/paper/2207.05221/) (2022)
- [A Survey on Hallucination in Large Language Models: Principles, Taxonomy, Challenges, and Open Questions](https://mlsanity.com/paper/2311.05232/) (2023)
- [Does Reinforcement Learning Really Incentivize Reasoning Capacity in LLMs Beyond the Base Model?](https://mlsanity.com/paper/2504.13837/) (2025)
- [Right for the Wrong Reasons: Diagnosing Syntactic Heuristics in Natural Language Inference](https://mlsanity.com/paper/1902.01007/) (2019)
- [SelfCheckGPT: Zero-Resource Black-Box Hallucination Detection for Generative Large Language Models](https://mlsanity.com/paper/2303.08896/) (2023)
- [Weight Uncertainty in Neural Networks](https://mlsanity.com/paper/1505.05424/) (2015)
- [Deep Exploration via Bootstrapped DQN](https://mlsanity.com/paper/1602.04621/) (2016)
- [Neural Text Generation with Unlikelihood Training](https://mlsanity.com/paper/1908.04319/) (2019)
- [Deep Ensembles: A Loss Landscape Perspective](https://mlsanity.com/paper/1912.02757/) (2019)
- [Understanding Factuality in Abstractive Summarization with FRANK: A Benchmark for Factuality Metrics](https://mlsanity.com/paper/2104.13346/) (2021)
- [BlenderBot 3: a deployed conversational agent that continually learns to responsibly engage](https://mlsanity.com/paper/2208.03188/) (2022)
- [Hallucination-Free? Assessing the Reliability of Leading AI Legal Research Tools](https://mlsanity.com/paper/2405.20362/) (2024)
- [Hallucination Augmented Contrastive Learning for Multimodal Large Language Model](https://mlsanity.com/paper/2312.06968/) (2023)
- [A Survey on Uncertainty Quantification of Large Language Models: Taxonomy, Open Research Challenges, and Future Directions](https://mlsanity.com/paper/2412.05563/) (2024)
- [Deficiency of Large Language Models in Finance: An Empirical Examination of Hallucination](https://mlsanity.com/paper/2311.15548/) (2023)
- [Adaptive Temperature Scaling for Robust Calibration of Deep Neural Networks](https://mlsanity.com/paper/2208.00461/) (2022)
- [Context-Aware Language Modeling for Goal-Oriented Dialogue Systems](https://mlsanity.com/paper/2204.10198/) (2022)
- [Post-hoc loss-calibration for Bayesian neural networks](https://mlsanity.com/paper/2106.06997/) (2021)
- [FAITH: A Framework for Assessing Intrinsic Tabular Hallucinations in Finance](https://mlsanity.com/paper/2508.05201/) (2025)

## Built on by (most cited first, 4 of 4)

- [Chance-Constrained Inference for Hallucination Risk Control in Large Language Models](https://mlsanity.com/paper/2602.01637/) (2026)
- [Harnessing Reasoning Trajectories for Hallucination Detection via Answer-agreement Representation Shaping](https://mlsanity.com/paper/2601.17467/) (2026)
- [A Unified Approach to Interpreting Knowledge Distillation for Large Language Models via Interactions](https://mlsanity.com/paper/2607.08776/) (2026)
- [Hallucination Across the Reasoning Lifecycle: Interface Visibility, Causal Evidence, and Release Control in Large Reasoning Models](https://mlsanity.com/paper/2610.05472/) (2026)

## Abstract (arXiv)

Large Language Models (LLMs) and Large Reasoning Models (LRMs) offer transformative potential for high-stakes domains like finance and law, but their tendency to hallucinate, generating factually incorrect or unsupported content, poses a critical reliability risk. This paper introduces a comprehensive operational framework for hallucination management, built on a continuous improvement cycle driven by root cause awareness. We categorize hallucination sources into model, data, and context-related factors, allowing targeted interventions over generic fixes. The framework integrates multi-faceted detection methods (e.g., uncertainty estimation, reasoning consistency) with stratified mitigation strategies (e.g., knowledge grounding, confidence calibration). We demonstrate its application through a tiered architecture and a financial data extraction case study, where model, context, and data tiers form a closed feedback loop for progressive reliability enhancement. This approach provides a systematic, scalable methodology for building trustworthy generative AI systems in regulated environments.