The Cambridge Dictionary's Word of the Year, 'hallucinate', reflects a growing concern in the AI industry about the accuracy of AI-generated content. The term now describes AI systems presenting false data as true, leading to issues like job loss and misinformation. Microsoft has faced criticism for inaccuracies in AI-produced articles. Morgan Stanley analysts have noted the problem of AI fabricating facts. The release of Vectara's open-source Hallucination Evaluation Model represents a step towards responsible AI and reducing misinformation risks.