From my experience it has been largely solved for one significant use case which is chatting to frontier models about the reality as described by public knowledge. 2 years ago models would rely on their training data, today they go out of their way trying to look it up on the Internet and verify thoroughly. I have not had a problem for a very long time.
When working off of limited, private/unverifiable context, LLMs still hallucinate, but again, much less than 2 years ago, and more within a "getting confused where a human would easily get confused" range, rather than "outrageously making things up" range.
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There has been quite significant progress.
From my experience it has been largely solved for one significant use case which is chatting to frontier models about the reality as described by public knowledge. 2 years ago models would rely on their training data, today they go out of their way trying to look it up on the Internet and verify thoroughly. I have not had a problem for a very long time.
When working off of limited, private/unverifiable context, LLMs still hallucinate, but again, much less than 2 years ago, and more within a "getting confused where a human would easily get confused" range, rather than "outrageously making things up" range.