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Beyond the 404: Navigating AI Hallucinations for Higher Conversions

by Article by Remington Begg Remington Begg | June 17, 2025 at 8:18 AM

AI is rapidly changing the digital landscape, impacting everything from how users find information to how businesses measure success. Through my recent research into analytics from our customers and overall industry changes, I've identified two critical areas businesses must address: the rise of AI hallucinations and the evolving nature of reporting website performance.

The 404 Page: An Opportunity to Leverage Traffic

One of the most intriguing insights I've found concerns "AI hallucinations" โ€“ instances where large language models (LLMs) generate non-existent pages or inaccurate information. Ahrefs reported that 3% of traffic attributed to LLMs led to pages that didn't exist. While seemingly small (and a small sample), this presents a unique opportunity for businesses which also helps the humans.

percentage-of-visitors-by-page-type-from-ai-assist

Instead of a generic "page not found" message, imagine a 404 page designed to convert. I suggest leveraging the "Clear Framework" to make these pages engaging and helpful. Most people throw a joke on there or they like give you a link back to the homepage to start over your search. But what if we made that 404 page engaging and hopefully surface content that would be helpful for the user?

A well-crafted 404 page can reinforce your brand story, highlight your unique selling proposition, and provide relevant content even when AI misfires. This approach solves for two types of users: the AI agent, by providing valuable content, and the human user, by offering a clear next step or even FAQโ€™s. It transforms a potential liability into an opportunity for conversion and a chance to glean intent from users who might have otherwise bounced.

Redefining Success: Conversion Rates in the AI Era

The second critical shift is in reporting. What I'm seeing is that organic traffic to websites may be down, but conversion rates are rising. This might seem counterintuitive, but it speaks to the changing nature of user intent in an AI-driven search environment.

When someone does click on those links, your conversion rate is exceedingly higher. When users are clicking through from AI-generated answers or overviews, they are often further down the funnel, seeking more in-depth information, validation, or looking to take a specific action. The LLM has already provided the initial concept; the user is now seeking to engage more deeply.

I emphasize that businesses should not panic over declining traffic numbers. Instead, they should focus on increased conversion rates as a key indicator of success. The quality of traffic, the quality of the landing page, and the overall context of the user are all contributing to these higher conversion rates. I predict that conversion rates could climb from a typical 2-3% to as high as 5-7% in the future as AI integration deepens.

Your reporting today is not going to work for the way that viewers and visitors to your website are going to be engaging with your content tomorrow. It's crucial to adapt your measurement strategies to account for these shifts and recognize that less traffic can, in fact, lead to more valuable engagement and conversions.

Begin to Prepare for the AI Future, small steps.

The takeaway is clear: the AI era demands a re-evaluation of traditional digital strategies. Businesses need to consider:

  • Optimizing 404 pages: Transform them into engaging, actionable resources that reinforce your brand and capture user intent, even in the face of AI hallucinations.

  • Revisiting reporting metrics: Shift focus from raw traffic numbers to conversion rates, understanding that traffic from AI-driven searches is often more qualified and intent-driven.

To delve deeper into these strategies and understand how your business can thrive in this evolving landscape, I encourage signing up for the upcoming Clear Framework webinar. As the digital world continues its rapid transformation, proactive adaptation will be the key to sustained growth and success.