The Uncanny Positivity of AI Hallucination

Objective – This study examines the phenomenon of AI hallucinations, emphasizing their unexpected positive outcomes across various domains. While existing research focuses on mitigating AI errors, this study explores their potential benefits, particularly in healthcare, creative industries, and marketing. Method – Using a multidisciplinary approach, the research integrates theories from social psychology, psychology, and marketing. A combination of literature review, Netnography, and theoretical analysis is employed to develop a framework for understanding positive AI hallucinations. Findings – The analysis reveals that AI hallucinations can enhance diagnostic tools in healthcare by augmenting training datasets, inspire novel artistic expressions in creative industries, and generate engaging, personalized content in marketing. These insights suggest that AI hallucinations, when properly harnessed, can serve as valuable assets rather than mere errors. Originality – This study offers a novel perspective by reframing AI hallucinations as beneficial rather than detrimental. Leveraging Social Comparison Theory, Positive Illusions Theory, and Expectancy-Value Theory, it provides a comprehensive framework that challenges conventional views on AI errors. Implications – Organizations can utilize AI hallucinations to enhance user engagement, improve healthcare outcomes, and drive innovation. This perspective aligns with UN SDG Goal 9, promoting sustainable industrialization and technological advancement. Further research is required to balance these findings with potential risks and long-term effects on user behavior.