MODE-RAG: Manifold Outlier Diagnosis and Energy-based Retrieval-Augmented Generation Evaluation

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.

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.

Retrieval-Augmented Generation (RAG) mitigates hallucinations in Multimodal Large Language Models (MLLMs), yet existing systems struggle with complex cross-modal reasoning. Flat vector retrieval often ignores structural dependencies, while current graph-based methods rely on costly ``translation-to-text'' pipelines that discard fine-grained visual information. To address these limitations, we propose \textbf{MG$^2$-RAG}, a lightweight \textbf{M}ulti-\textbf{G}ranularity \textbf{G}raph \textbf{RAG} framework that jointly improves graph construction, modality fusion, and cross-modal retrieval. MG$^2$-RAG constructs a hierarchical multimodal knowledge graph by combining lightweight textual parsing with entity-driven visual grounding, enabling textual entities and visual regions to be fused into unified multimodal nodes that preserve atomic evidence. Building on this representation, we introduce a multi-granularity graph retrieval mechanism that aggregates dense similarities and propagates relevance across the graph to support structured multi-hop reasoning. Extensive experiments across four representative multimodal tasks (i.e., retrieval, knowledge-based VQA, reasoning, and classification) demonstrate that MG$^2$-RAG consistently achieves state-of-the-art performance while reducing graph construction overhead with an average 43.3$\times$ speedup and 23.9$\times$ cost reduction compared with advanced graph-based frameworks.