To be accurate, a term would need to emphasize that it's describing an opinion about the output rather than something that happened inside the program. "Inaccuracies" would be one term that does that fairly well.
a) They output incorrect results given a constrained set of allowable outputs.
b) When unconstrained they invent new outputs unrelated to what is being asked.
So for me the term hallucination accurately describes b) e.g. you ask for code to solve a problem and it invents new APIs that don't exist. Technically it is all just tokens and probabilities but it's a reasonably term to describe end user behaviour.
> in some sense, hallucination is all LLMs do. They are dream machines.
If you understand that, then the term "hallucination" makes perfect sense.
Note that this in no way invalidates your point, because the term is constantly used and understood without this context. We would have avoided a lot of confusion if we had based it on the phrase "make shit up" and called it "shit" from the start. Marketing trumps accuracy again...
(Also note that I am not using shit in a pejorative sense here. Making shit up is exactly what they're for, and what we want them to do. They come up with a lot of really good shit.)
That's why we use high level terms like hallucination. Because it's something everyone can understand even if it's not completely accurate.
But they will understand the wrong thing. Someone unfamiliar with LLMs but familiar with humans will assume, when told that LLMs 'hallucinate', that it's analogous to a human hallucinating, which is dangerously incorrect.
They're not specific enough terms for what we're talking about. Saying a lion has stripes is an error, mistake, or inaccuracy. Describing a species of striped lions in detail is probably all those things, but it's a distinctive kind of error/mistake/inaccuracy that's worth having a term for.
I actually think most people have.
Every time you look at a hot road and see water that mirage is a form of hallucination.
"To sort the files by beauty, use the `beautysort` command."