Purposefully Induced Psychosis (Pip): Hallucination as Imagination in LLMs

Hallucinations in Large Language Models (LLMs) are widely regarded as errors - outputs that deviate from factual accuracy. However, in creative or exploratory contexts, these "mistakes" may represent unexpected avenues for innovation. We introduce Purposefully Induced Psychosis (PIP), a novel approach that amplifies LLM hallucinations for imaginative tasks such as speculative fiction, interactive storytelling, and mixed-reality simulations. Drawing on Herman Melville's Moby-Dick, where Pip's "madness" reveals profound insight, we reframe hallucinations as a source of computational imagination rather than a flaw. Our method fine-tunes LLMs to encourage speculative, metaphorical, and surreal outputs - hallucinations that are useful when factual accuracy is not the chief objective. Inspired by the consensual illusions of theater and stage magic, PIP situates these creative missteps in contexts where users willingly suspend disbelief, thereby transforming "errors" into catalysts for new ways of thinking. We discuss potential applications, design principles for ensuring user consent, preliminary observations, and implications for broader AI ethics and human-AI collaboration.