AI Glossary

Grounding

What it means, why it matters to your business, and where it shows up in a real build decision.

In plain terms

Grounding is tying an AI model's answers to verified sources, such as your own documents, so responses can be traced and trusted. Grounding is the main defense against hallucination. A grounded answer can show its receipts, which is what makes AI usable for compliance-sensitive work.

A simple analogy

Grounding is what separates a cited encyclopedia entry from a rumor. The encyclopedia states the fact and shows you its source. The rumor sounds just as confident.

What it looks like in practice

A compliance assistant grounded in the company's actual policy documents cites the exact clause and document version for every answer. An ungrounded model produces an answer that sounds right but may not match current policy.

When to use it

For any task where accuracy is non-negotiable and a source must back the answer: legal, compliance, medical, financial, and policy-sensitive work.

When to avoid it

Grounding requires good source documents. If the underlying knowledge base is incomplete or outdated, grounding amplifies that gap. Maintain the source content as rigorously as the AI system itself.

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