FAITH: A Framework for Assessing Intrinsic Tabular Hallucinations in finance

• URL: http://arxiv.org/abs/2508.05201v1
• Date: Thu, 07 Aug 2025 09:37:14 GMT
• Title: FAITH: A Framework for Assessing Intrinsic Tabular Hallucinations in finance
• Authors: Mengao Zhang, Jiayu Fu, Tanya Warrier, Yuwen Wang, Tianhui Tan, Ke-wei Huang,
• Abstract summary: Hallucination remains a critical challenge for deploying Large Language Models (LLMs) in finance.<n>We develop a rigorous and scalable framework for evaluating intrinsic hallucinations in financial LLMs.<n>Our work serves as a critical step toward building more trustworthy and reliable financial Generative AI systems.
• Score: 0.06597195879147556
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Hallucination remains a critical challenge for deploying Large Language Models (LLMs) in finance. Accurate extraction and precise calculation from tabular data are essential for reliable financial analysis, since even minor numerical errors can undermine decision-making and regulatory compliance. Financial applications have unique requirements, often relying on context-dependent, numerical, and proprietary tabular data that existing hallucination benchmarks rarely capture. In this study, we develop a rigorous and scalable framework for evaluating intrinsic hallucinations in financial LLMs, conceptualized as a context-aware masked span prediction task over real-world financial documents. Our main contributions are: (1) a novel, automated dataset creation paradigm using a masking strategy; (2) a new hallucination evaluation dataset derived from S&P 500 annual reports; and (3) a comprehensive evaluation of intrinsic hallucination patterns in state-of-the-art LLMs on financial tabular data. Our work provides a robust methodology for in-house LLM evaluation and serves as a critical step toward building more trustworthy and reliable financial Generative AI systems.

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