How Large Language Models Balance Internal Knowledge with User and Document Assertions

Retrieval-augmented generation (RAG) improves large language models (LLMs) by incorporating external evidence, but it also introduces knowledge conflicts when retrieved contextual knowledge (CK) and parametric knowledge (PK) disagree or are both unreliable. Existing approaches mainly coordinate which source to use, without explicitly asking whether each answer path is correct. We argue that faithful RAG requires LLM self-awareness, namely the ability to recognize the limits of its own knowledge and reasoning. To ground this problem, we construct a model-specific, ground-truth-aligned knowledge-conflict benchmark by evaluating LLM backbones on PK-only and CK-conditioned answer paths over approximately 69K query-context instances per backbone, drawn from five conflict-QA datasets. We then introduce SABER, a Self-Aware Belief Estimator for RAG that requires no LLM fine-tuning. SABER combines a self-prior with PK-side and CK-side conditional reasoning representations from multi-trace inference, then estimates reliability beliefs with two lightweight predictors to drive a 4-cell decision over trust PK, trust CK, trust either, or abstain. Across four LLM backbones, SABER improves end-to-end accuracy and conflict-specific faithfulness over ten inference-time and fine-tuning baselines, with the largest gains on conflict-heavy datasets. Under abstention, SABER's risk-coverage curve Pareto-dominates every prompt-based abstainer, providing a tunable balance between coverage and answer risk. Our code is available at https://github.com/xizhu1022/SABER.

Large language model (LLM) hallucinations, meaning fluent but factually incorrect generations, fall into two types: faithfulness violations, where the model misuses provided context, and factuality violations, where answers reflect errors in internal knowledge. Proper mitigation depends on knowing which source drives each answer. We study contributive attribution, i.e. the classification of the dominant knowledge source behind each output, and show that a simple linear probe trained on hidden representations can reliably identify it. We introduce AttriWiki, a self-supervised pipeline that automatically generates labelled training data by prompting models to recall withheld entities from memory or read them from context without relying on knowledge conflicts. Probes trained on AttriWiki achieve up to 0.96 Macro-$F_1$ on Llama-3.1-8B, Mistral-7B, and Qwen-7B, transfer to SQuAD and WebQuestions with 0.94-0.99 Macro-$F_1$, and generalise zero-shot to Tighidet et al. (2024)'s benchmark, outperforming their probe on conflicting settings without retraining. Furthermore, attribution mismatches raise error rates by up to 70%, though correct attribution does not guarantee correct answers, pointing to the need for broader detection frameworks.

Hallucinations -- factually incorrect or unverifiable outputs -- remain one of the most challenging limitations of Large Language Models (LLMs), especially in knowledge-intensive tasks. One proposed explanation is internal knowledge conflicts arising from fixed, outdated training data. This paper investigates whether internal representations linked to knowledge conflicts correlate with hallucination behaviors in LLMs. Using probing techniques inspired by two prior works, we analyzed activations from hidden, attention, and MLP layers, as well as output logits, across predefined tasks. We probed LLaMA-3-8B on hallucination detection benchmarks and Falcon-7B on a knowledge conflict dataset. Our findings show that, although conceptually related, hallucination activation patterns cannot be fully reduced to or explained by knowledge conflict representations. Nonetheless, probing proves a robust tool across multiple languages and activation types, supporting its role in improving LLM interpretability. This work advances the broader understanding of hallucinations in LLMs and underscores the value of fine-grained analysis of their internal behavior.