← AI Glossary

Grounding

The process of anchoring AI model outputs to verifiable facts, source documents or real-world knowledge bases to reduce hallucinations and improve factual accuracy.

In plain language

Connecting an AI's answers to real, verifiable sources instead of letting it generate responses purely from what it learned during training. It's like asking the AI to cite its work from actual documents before giving you an answer.

Why this matters

Grounding is a foundational governance control that reduces hallucination risk in high-stakes applications. For Australian organisations subject to the Privacy Act or ASIC requirements, grounded AI architectures are essential for business-critical decisions where factual accuracy directly impacts regulatory compliance or customer outcomes.

Relevance

Governance

Grounding is a key technical control for reducing AI risk and ensuring outputs meet accuracy standards required by Australian regulators.

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