Fakes of Varying Shades: How Warning Affects Human Perception and Engagement Regarding LLM Hallucinations

The widespread adoption and transformative effects of large language models (LLMs) have sparked concerns regarding their capacity to produce inaccurate and fictitious content, referred to as `hallucinations'. Given the potential risks associated with hallucinations, humans should be able to identify them. This research aims to understand the human perception of LLM hallucinations by systematically varying the degree of hallucination (genuine, minor hallucination, major hallucination) and examining its interaction with warning (i.e., a warning of potential inaccuracies: absent vs. present). Participants (N=419) from Prolific rated the perceived accuracy and engaged with content (e.g., like, dislike, share) in a Q/A format. Results indicate that humans rank content as truthful in the order genuine > minor hallucination > major hallucination and user engagement behaviors mirror this pattern. More importantly, we observed that warning improves hallucination detection without significantly affecting the perceived truthfulness of genuine content. We conclude by offering insights for future tools to aid human detection of hallucinations.