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Sitting in an office at the foot of Lung Fu Shan, the view from the window is of the lush greenery of Pok Fu Lam, with the shimmering waters of Victoria Harbour faintly visible in the distance. This is where academia and finance converge in Hong Kong, and it offers one of the best vantage points for observing the city’s economic pulse.

Large language models are increasingly permeating core domains such as knowledge production, business analysis, legal consulting, and medical decision-making. A problem that was once often regarded as a mere technical flaw is rapidly becoming a new focal point in the global technology race: the “hallucination” of large language models—namely, the tendency of a model, when lacking any factual basis, to still produce highly “confident,” fluent, yet false answers.