The Confident Hallucinator: Runtime Patterns for Knowledge Boundary Signaling in LLMs
GPT-4 achieves roughly 62% AUROC when its own confidence scores are used to separate correct answers from incorrect ones. That's barely above the 50% baseline of flipping a coin. The model sounds certain and polished in both cases. If you're building a production system that assumes high-confidence responses are reliable, you're working with a signal that's nearly random.
This is the knowledge boundary signaling problem, and it sits at the center of most real-world LLM quality failures. The model doesn't know what it doesn't know — or more precisely, it knows internally but can't be trusted to express it. The engineering challenge isn't getting models to refuse more; it's designing systems that make uncertainty actionable without making your product feel broken.
