SEC Filings Show AI Hallucination Disclosures Are Inflated by Pharma Reports
An analysis of SEC annual filings on EDGAR found a seemingly sharp rise in companies disclosing AI 'hallucinations,' climbing from 30 filings in 2022 to 166 so far in 2026. However, the 2022 baseline predates ChatGPT's November launch, exposing a flaw in the raw count. Many early filings came from pharmaceutical companies using 'hallucinations' as a clinical symptom description, not an AI risk disclosure. Even after refining the search to include 'artificial intelligence' alongside 'hallucinations,' pharma filings still outnumbered software companies 29 to 10 in 2026. The investigation highlights how keyword-based data analysis can produce misleading trends when the same term carries different meanings across industries.
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