Yesterday’s News 2025 12 24

curated news excerpts & citations

model accuracy vs. hallucination rate

James Eagle: Hallucination is now the real AI bottleneck

This matters because the usefulness of AI now hinges less on how clever models sound and more on whether they can be trusted. As AI moves from demos into healthcare, law and finance, a single wrong answer is no longer a curiosity. It is a liability.

This chart compares leading AI models across two dimensions accuracy and hallucination. Lower hallucination is better. What stands out is how wide the gap has become. Some of the most capable models also hallucinate more often, while others sacrifice a bit of raw performance to stay grounded. Claude models cluster toward lower hallucination, which helps explain their traction in regulated industries. Several open weight models sit at the opposite extreme, offering flexibility and cost advantages but with far higher error risk.

The deeper point is that scale and fluency are no longer enough. Bigger models trained on more data do not automatically become more reliable. In fact, as systems grow more confident and articulate, their mistakes can become harder to spot. That creates a trust problem, not a technology problem. Until hallucination rates fall meaningfully, AI adoption in high stakes settings will remain cautious and uneven.

(James Eagle more…)
scatter plot mapping the world’s emotional response to artificial intelligence

Howard Yu: The One Chart That Explains Everything

If one chart captures the global mood as the holidays arrive, it isn’t a stock index, an inflation line, or a defense budget.

On the X-axis, you have excitement; on the Y-axis, nervousness. The world splits into two distinct clusters.

You have the United States and much of Western Europe in one cluster: wary, anxious, bracing for impact. In the other, China and its Asian neighbors: optimistic, eager, racing to adopt.
(Howard Yu more…)


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