arXiv AI By Guy Kaplan, Zorik Gekhman, Zhen Zhu, Lotem Rozner, Yuval Reif, Swabha Swayamdipta, Derek Hoiem, Roy Schwartz

Why Fine-Tuning Encourages Hallucinations and How to Fix It

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The paper investigates why supervised fine‑tuning (SFT) of large language models leads to increased hallucinations of factual information. It proposes a self‑distillation SFT approach that regularizes output‑distribution drift to preserve pre‑training knowledge, and shows that freezing parameter groups can reduce hallucinations when new knowledge is unnecessary. Experiments attribute the main cause to interference among overlapping semantic representations, which self‑distillation mitigates, and an associative‑memory model explains the forgetting dynamics.

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