In plain English
An ungrounded answer is recalled. A grounded answer is derived from documents in front of the model, which changes the failure mode from fabrication to misreading, a far more manageable problem.
This is why pasting the contract in and asking about it works well, while asking about the contract without providing it does not.
What to know
Why it matters
Grounding is the difference between AI that is useful in a business and AI that is a liability. It converts a system that invents into a system that reads, and it is available without any technical work at all.
Common mistakes
FAQs
Is grounding the same as RAG?
RAG is automated grounding: retrieving the right material and supplying it.
Does grounding stop hallucination?
It reduces it substantially. Verification is still required.
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