Why AI Agents Hallucinate: The Context Problem & How to Fix It | Production-Ready Agents

Here’s how you can stay engaged and access more valuable content: 🔹 Access the session presentation: https://docs.google.com/presentation/d/1X0T-3NL2AwbRI8HN-MJcar63am3s8yig_wUKqre0FR0/edit?usp=sharing 🔹 LinkedIn Community: https://www.linkedin.com/company/mahesh-ai-pm-community/ 🔹 Substack : https://myaicommunity.substack.com/ 🔹 Sign up for Free Learning Resources: https://forms.gle/sRNjXnsurNxNAUQW7 🔹 AI PM Certification: https://maven.com/mahesh-yadav/genaipm 🔹 AI PM Interview Bootcamp: https://maven.com/mahesh-yadav/ai-pm-interview-prep-bootcamp 🔹 Speak to Our Mentors: Book a call Here: https://calendly.com/d/ct2s-3s2-n89/1-1-with-team-mahesh?month=2026-10&utm_medium=youtube&utm_campaign=description_campaign What is this lesson about? Hallucinations in AI agents aren't random—they're predictable failures caused by missing context. When you ask an agent a question without providing the right information, it makes things up. This session covers why hallucinations happen, how to prevent them through proper context management, and why agents need citations and guardrails to be trustworthy in production. Real example: An HR bot answering "How many holidays do I have?" without access to employee data, policies, and accrual rates will hallucinate. Add the missing context, and suddenly the bot becomes useful. Perfect for: Building production agents, implementing HR/support/finance bots, understanding agent reliability.