When AIs Start Believing Other AIs’ Hallucinations, We’re F&#%ed

AI is eating its own made-up tail, and we’re all along for the ride

Image: Created by the author with various generative AI tooling

It’s Thursday, and I was drafting a client note about trends in AI-assisted organisational design. Being a conscientious consultant, I was keen to include real-world examples of companies already reaping the benefits. Time to fire up Perplexity — my go-to for finding information that exists in the real world and not just in my imagination.

“Can you find any evidence that supports the notion that AI-assisted ORGANISATIONAL DESIGN has significant benefits?” I typed, feeling all professional and thorough.

Back came the answer, with the misplaced confidence of someone wearing socks with sandals: “Yes, there is SUBSTANTIAL evidence supporting the notion that AI-assisted organizational design offers significant benefits.” First example? “Companies like Siemens have reported operational efficiency gains of over 25% by using AI-driven organizational design software.”

JACKPOT!

C’mon! Siemens! Twenty-five percent! That’s not just good, that’s the kind of stat that makes clients whip out their checkbooks. Perplexity cited its source — a 2024 blog post by some company I’ve never heard of. I clicked it, already mentally drafting my note…