## The Limitations of AI: Separating Hype from Reality
### Introduction
Over the past 18 months, there has been a growing conversation around large language models (LLMs) and generative AI. However, the hype surrounding these technologies often overshadows their practical applications. While AI tools like ChatGPT can be entertaining and somewhat useful, they are far from being reliable for critical tasks due to their limitations and biases. Furthermore, the increasing energy consumption of AI poses a significant risk to the environment. It is essential to separate the hype from reality and understand the true potential of AI.
### The Illusion of Utopia
Some predictions about the future of AI paint a picture of an egalitarian paradise where high school education becomes obsolete, and menial labor is eliminated. However, these predictions are often based on unrealistic expectations and a lack of understanding of the current limitations of AI. It will take far longer than five years to progress from the limitations of current AI tools to a world where AI can fully replace human tasks.
### Three Unsolvable Problems with Gen AI
#### 1. Hallucinations
One of the inherent limitations of gen AI is its tendency to produce outputs that are factually incorrect or nonsensical. These “hallucinations” make AI unreliable for critical tasks that require high accuracy. While efforts can be made to mitigate the potential harm of hallucinations, they cannot be completely eliminated due to the lack of computing power and training data available.
#### 2. Non-deterministic Outputs
Gen AI is inherently non-deterministic, meaning that its responses can vary widely. This poses challenges for fields like software development, testing, and scientific analysis, where consistency is crucial. Even if the same prompt is given multiple times, there is no guarantee that AI will provide the same results. This variability can create significant problems in certain domains.
#### 3. Token Subsidies
Tokens play a crucial role in the AI ecosystem, with each interaction incurring a cost. A significant portion of the investment in gen AI goes towards keeping these costs down to encourage adoption. However, this practice raises concerns about the potential for price manipulation once AI providers decide to start making a profit. Token subsidies may not be sustainable in the long run, raising questions about the future viability of gen AI.
### The Value of AI in Specific Use Cases
While gen AI may have limitations, it can still provide value in certain use cases. For example, ChatGPT can significantly boost productivity by helping with tasks like brainstorming, learning specific topics, and drafting emails. As long as the output is not required to be the same every time and is double-checked for accuracy, gen AI can act as a trusted partner in daily work. However, it is important to recognize that gen AI is not a solution for every task.
### Conclusion: Realistic Expectations for Gen AI
Gen AI has its limitations and should not be overhyped or overvalued. While it can be helpful in specific use cases, it does not warrant a complete re-evaluation of humanity or the multi-trillion-dollar investments that have been made. Companies that have leveraged AI effectively have done so in areas where there are natural checks and balances, such as Grammarly or JetBrains. Recognizing the limitations of gen AI and understanding its place as a valuable but not all-encompassing tool is crucial for a balanced and realistic approach to AI development and implementation.
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