What AI hallucinations are, why they matter for business, and how grounding reduces the risk.
dgm is an independent osFoundry integration partner — not affiliated with osFoundry’s maker (OS LLC), and dgm has no completed client integrations yet.
AI hallucination — confident wrong answers — is a real business risk. Here is what it is and how a Hong Kong business reduces it.
What hallucination is
When an AI model generates plausible but incorrect information. It is inherent to how language models work, not a bug you can fully eliminate.
How to reduce it
Ground the model in your own data via retrieval so it answers from real sources; keep a human in the loop for important outputs; and tell users when they are interacting with AI — which Hong Kong’s HKMA and SFC expect for regulated, customer-facing uses.
Designing for it
Treat AI output as a draft to be checked, not a final answer, especially for professional deliverables. osFoundry’s managed cloud pins data to the US, EU or Japan — it does not currently offer a Hong Kong managed region (its nearest managed region is Japan). To keep data in Hong Kong, the honest path is self-hosting osFoundry (BYO Cloud) inside a Hong Kong cloud region such as AWS Asia Pacific (Hong Kong) ap-east-1, Microsoft Azure East Asia (Hong Kong SAR) or Google Cloud asia-east2 (Hong Kong), or running models locally on-device.
Where dgm fits
dgm is an independent integration partner that helps Hong Kong businesses adopt osFoundry — scoping a first use case, handling the build, and connecting AI to the systems you already run. dgm is independent of osFoundry’s maker (OS LLC) and has no completed client integrations yet, so everything described here is a service offered, not a past result. If you want to scope a practical first project, dgm can help you map it out.