Performance & Evaluation

Factual Accuracy

Whether an AI's statements are true and verifiable.

Definition

Factual accuracy measures whether the claims made in an AI's output are actually true. This is distinct from coherence (does it make logical sense?) and fluency (is the language good?). Factual accuracy is the dimension most affected by hallucination, and the most critical for business use cases. Testing factual accuracy requires comparing AI outputs against ground truth sources — which can be labour-intensive but is non-negotiable for high-stakes deployments.

Related Terms

Hallucination

When an AI confidently produces false information it has invented.

Grounding

Connecting AI outputs to verified real-world information to reduce hallucination.

Benchmark

A standardised test used to compare and measure AI model performance.

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Disclaimer

This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.

Document reference: ISO_webpage_knowledge-base_glossary_v1

Last modified: 29 March 2026

Knowledge Base·Performance & Evaluation·Factual Accuracy