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The AI Plateau: Why We Should Temper Our Expectations

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We are living through an impressive state of AI advancement. The progress over the last five years represents a genuine paradigm shift, and there’s no denying its power. But alongside the excitement, many are rightfully concerned about the hype. Can AI deliver on the transformative future we keep talking about?

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The Linear Growth Assumption

My expertise is in software, and what I see there gives me pause. We often have a linear understanding of progress, assuming that the rapid advances we’ve made will continue at the same rate, if not faster. Some even predict exponential growth, similar to what we saw with search technology or processing speeds. But history shows us that neither linear nor exponential growth is guaranteed.

Consider the promise of fully autonomous, self-driving cars. Five years ago, I would have said that by now, we’d have high-capacity self-driving capabilities. Instead, the industry has stagnated. After a period of incredible progress, we’ve hit a kind of writer’s block, struggling to solve the most pressing questions. I believe we’re in a similar situation with AI today.

AI’s Current Strengths: Rule-Based Systems

It’s not surprising that AI has done so well producing new code. Software is a rule-based system, and AI has been trained on decades of high-quality examples, bug fixes, and best practices. In structured domains like this, it excels. Similarly, it can generate a detailed travel itinerary for London because there is a finite number of places to go and a massive amount of well-structured content about them online.

Where AI Thrives

Current AI systems excel in domains with:

The Challenge of Unstructured Reality

The problem arises when we ask AI to step outside of these sandboxes. What about things that don’t have a lot of content, or where the available information is complex and unstructured? You can’t easily draw a simple conclusion from messy, real-world data. Asking an AI who you should vote for is infinitely more complicated than planning a trip. It involves long-term consequences, the actions of others, and a web of interconnected issues.

This reveals the core challenge: the current AI paradigm is limited by the quality of its training data. We have chosen to scale this technology at a time when misinformation is rampant. If the content available on the internet is often incorrect, the AI’s output will be too.

The Misinformation Problem

The internet, AI’s primary training source, is increasingly filled with:

This creates a feedback loop where AI systems trained on internet data may perpetuate and amplify existing problems.

The Scaling Question

This brings us back to the question of future growth. People are making bold predictions about AI replacing white-collar jobs, but we don’t know if the current paradigm can even scale to that point. There are indicators that we have already extracted much of the value from the available data.

AI is not yet close to replacing the full cognitive capacity of a human, even in more menial roles like entry-level accounting or analysis. The prevalence of errors, hallucinations, and unreliable information means we still need a human in the loop.

Current Limitations

Despite impressive capabilities, AI systems still struggle with:

The Need for Another Paradigm Shift

To make its next big leap, AI will most likely need another paradigm shift. Until then, we should be careful. The future of AI may not be a straight line of progress, but a series of plateaus, and we may have just reached our first one.

Historical Parallels

Technology advancement often follows this pattern:

We’ve seen this with:

Managing Expectations

The key is not to abandon AI development, but to set realistic expectations about what current technology can achieve. We should:

Conclusion

The AI revolution is real, but it may not unfold as smoothly as many predict. Like the autonomous vehicle industry, we may be entering a period where the most obvious improvements have been captured, and the next breakthrough requires fundamentally new approaches.

Rather than expecting continuous exponential growth, we should prepare for a more nuanced future where AI progress comes in waves, with periods of rapid advancement followed by plateaus. This doesn’t diminish AI’s importance—it simply means we need to be more strategic about how we develop and deploy these powerful tools.

The future of AI will likely be determined not by scaling current methods, but by discovering new paradigms that can handle the complexity and uncertainty of the real world. Until then, tempering our expectations while continuing to push the boundaries of what’s possible is the wisest path forward.


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