LLMs internally know a lot more about the uncertainty and factualness of their predictions than they say. "LLMs are always hallucinating" is a popular stance but wrong all the same. Maybe rather than asking Why models hallucinate, the better question is to ask "Why not?". During pre-training, there's close to zero incentive to push any uncertainty to the forefront (words).
GPT-4 logits calibration pre RLHF - https://imgur.com/a/3gYel9r
Language Models (Mostly) Know What They Know - https://arxiv.org/abs/2207.05221
The Geometry of Truth: Emergent Linear Structure in Large Language Model Representations of True/False Datasets - https://arxiv.org/abs/2310.06824
The Internal State of an LLM Knows When It's Lying - https://arxiv.org/abs/2304.13734
LLMs Know More Than What They Say - https://arjunbansal.substack.com/p/llms-know-more-than-what-...
Just Ask for Calibration: Strategies for Eliciting Calibrated Confidence Scores from Language Models Fine-Tuned with Human Feedback - https://arxiv.org/abs/2305.14975
Teaching Models to Express Their Uncertainty in Words - https://arxiv.org/abs/2205.14334