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Hallucination in large language models usually refers to the model generating unfaithful, fabricated, inconsistent, or nonsensical content. As a term, hallucination has been somewhat generalized to cases when the model makes mistakes.
Prompt Engineering, also known as In-Context Prompting, refers to methods for how to communicate with LLM to steer its behavior for desired outcomes without updating the model weights.
[Updated on 2020-11-12: add an example on closed-book factual QA using OpenAI API (beta). A model that can answer any question with regard to factual knowledge can lead to many useful and practical applications, such as working as a chatbot or an AI assistant🤖.
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