Abstract
Multi-step agentic retrieval-augmented generation (RAG) pipelines have demonstrated significant capability for complex reasoning tasks, yet remain vulnerable to a class of failure that existing hallucination detection mechanisms systematically miss: cascading hallucination, where errors introduced at early pipeline stages propagate and amplify across successive reasoning steps, producing confident but factually incorrect final outputs. To address this vulnerability, we formalize cascading hallucination as a distinct failure mode in agentic RAG systems, present a four-type taxonomy of cascade patterns, and introduce CHARM (Cascading Hallucination Aware Resolution and Mitigation), an architectural framework for detecting and interrupting error propagation in multi-step reasoning pipelines. CHARM comprises four components - stage-level fact verification, cross-stage consistency tracking, confidence propagation monitoring, and cascade resolution triggering - that operate alongside standard agentic RAG pipelines without requiring architectural replacement. We evaluate CHARM on HotpotQA, MuSiQue, 2WikiMultiHopQA, and a custom adversarial dataset across LangChain agentic pipeline configurations, achieving an 89.4% cascade detection rate with a 5.3% false positive rate and 215 ms +/- 18 ms average latency overhead per stage, achieving an error propagation reduction of 82.1%, compared to 18.5% for output-level detectors. Component ablations confirm that each detection module contributes meaningfully to overall cascade coverage. CHARM integrates with human-in-the-loop oversight frameworks to provide a complete reliability and governance stack for production agentic AI deployment.
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Apr 17, 2026cs.CL
Retrieval-Augmented Generation (RAG) is widely used to augment the input to Large Language Models (LLMs) with external information, such as recent or domain-specific knowledge. Nonetheless, current models still produce closed-domain hallucinations and generate content that is unsupported by the retrieved context. Current detection approaches typically treat hallucination as a post-hoc problem, relying on black-box consistency checks or probes over frozen internal representations. In this work, we demonstrate that hallucination detection based on internal state representation can also serve as a direct training signal. We introduce RAGognize, a dataset of naturally occurring closed-domain hallucinations with token-level annotations, and RAGognizer, a hallucination-aware fine-tuning approach that integrates a lightweight detection head into an LLM, allowing for the joint optimization of language modeling and hallucination detection. This joint objective forces the model to improve the separability of its internal states regarding hallucinations while simultaneously learning to generate well-formed and meaningful responses. Across multiple benchmarks, RAGognizer achieves state-of-the-art token-level hallucination detection while substantially reducing hallucination rates during generation, without degrading language quality or relevance.
Fabian Ridder, Laurin Lessel, Malte Schilling
Jun 30, 2026cs.CL
In this paper, we propose CORTEX, a token-level hallucination detection method for Retrieval-Augmented Generation (RAG). In long-form RAG outputs, hallucinations often arise in localized spans rather than throughout an entire response. CORTEX therefore identifies ungrounded content at the token level, enabling fine-grained localization of hallucinations. The key intuition behind CORTEX is that tokens grounded in retrieved documents should be more strongly influenced by those documents than hallucinated tokens. To capture this document-induced effect, CORTEX compares internal representations of a large language model (LLM) under two conditions: with and without the retrieved documents. Instead of relying solely on each token's immediate sensitivity to the retrieved documents, CORTEX also leverages the propagation of document-grounded information through preceding tokens, reducing false positives for tokens whose evidence has already been absorbed into the context. Finally, CORTEX applies post-processing smoothing step that models the tendency of hallucination labels to persist over contiguous spans, reducing local noise and encouraging span-consistent predictions. Experiments on two RAG benchmarks and three LLMs show that CORTEX substantially improves token-level hallucination detection, with each component consistently contributing to performance gains.
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While Multimodal Retrieval-Augmented Generation (M-RAG) enhances Large Vision-Language Models, it remains highly susceptible to cross-modal hallucinations, causal fabrications, and sycophancy. Furthermore, existing mitigation pipelines often face an intervention paradox: static rules tend to unnecessarily disrupt accurate generations, whereas leaving the multi-modal reasoning completely unguided allows existing mismatches to cascade into severe logical fabrications. To quantify and mitigate these hallucinations, we propose a Multi-Agent system, MODE-RAG, driven by Variational Free Energy (VFE) and internal attention states to dynamically gate interventions. High-risk queries are routed to five stage-specific agents, integrating Monte Carlo Tree Search (MCTS) for rigorous causal derivation and logit perturbations to penalize sycophancy. Dedicated Correction and Overseer agents ensure formatting stability and perform post-hoc factual verification. To objectively evaluate our approach, we introduce ModeVent, a challenging subset derived from the MultiVent dataset. Extensive experiments indicate that our system effectively reduces hallucination rates and logical fabrication, significantly improving the robustness of M-RAG systems.
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