Why does brand hallucination occur in AI chatbot responses?

Brand hallucinations occur when Large Language Models (LLMs) lack access to verified, structured data about your company, causing them to invent plausible but incorrect facts. Without a governed single source of truth, AI models may misquote your pricing, policies, or product features to users. Implementing an AI-ready knowledge base like Uttik prevents these errors by feeding accurate, brand-verified data directly into the AI ecosystem.