FinTech4 months
Reducing Hallucinations in Financial Advisory Bot
Client
Global Asset Manager
Overview
A global asset manager wanted to deploy an LLM-based advisor but found it was inventing financial products that did not exist. Kaycore was brought in to secure the deployment.
The Challenge
The LLM was generating plausible but factually incorrect investment advice, creating immense regulatory and reputational risk.
Our Solution
We implemented a multi-layer guardrail system:
• Strict RAG (Retrieval Augmented Generation) enforcement
• Output validation against product database
• "Constitutional" prompts to enforce disclaimer protocols
Tech Stack
PythonLlamaIndexOpenAI APIPostgreSQLDocker
Key Results
hallucination Rate
Reduced from 12% to 0.08%
compliance
100% adherence to regulatory disclaimer requirements
cost Savings
Estimated $10M in avoided regulatory fines
Reduced hallucination rate from 12% to 0.08%
100% adherence to regulatory disclaimer requirements
Estimated $10M in avoided regulatory fines