Air Canada Lost a Lawsuit Because Their RAG Hallucinated. Yours Might Be Next

25/11/2025 8 min
Air Canada Lost a Lawsuit Because Their RAG Hallucinated. Yours Might Be Next

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This story was originally published on HackerNoon at: https://hackernoon.com/air-canada-lost-a-lawsuit-because-their-rag-hallucinated-yours-might-be-next.
Most RAG hallucination detectors fail on real-world tasks, leaving AI systems vulnerable to confident errors that can become costly in production.
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Cleanlab’s latest benchmarks reveal that most popular RAG hallucination detection tools barely outperform random guessing, leaving production AI systems vulnerable to confident, legally risky errors—while TLM stands out as the only method that consistently catches real-world failures.


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