Module 5

Hallucinations, privacy, and risk

Module 5 of 6, designed for short phone-friendly study sessions.

Hallucinations

A hallucination is when an AI system gives false, made-up, or misleading information as if it were true. The dangerous part is that these answers can sound polished and confident.

Privacy

Beginner rule, do not paste sensitive information into a tool unless you understand the privacy rules and you are allowed to share it there. Sensitive info can include customer data, legal docs, medical info, passwords, internal financial details, or confidential business information.

Risk levels

Some tasks are low-risk, some medium-risk, some high-risk. The higher the stakes, the more human review you need.

Low, brainstorming headlines, rewriting a paragraph, summarizing your own notes.
Medium, drafting a customer email that still needs review, summarizing an internal policy draft before approval.
High, legal advice, medical advice, financial recommendations, compliance-sensitive decisions, sending unreviewed output to customers in important situations.

Common mistake

Professional tone can hide errors. Review matters more as stakes rise.

Continue to Module 6 Back to Module 4