When Your Agent Knows It’s Lying: Detecting Tool-Calling Hallucinations from the Inside
The expensive part of an AI agent making things up is not always the sentence it writes. Sometimes it is the API call it sends. A chatbot can hallucinate a policy clause and embarrass itself. An agent can hallucinate a function call and move money, query the wrong data, calculate the wrong dose, bypass an audit trail, or quietly pretend it used a tool when it actually guessed. That is a different species of failure. The output may still look tidy. The JSON may still parse. The function name may even exist. The problem is that the agent has selected the wrong action in a system that treats actions as real. ...