The Limitations of Generative AI

Generative AI, particularly based on transformer models like GPT, has faced significant limitations that hinder its development and usefulness. Despite the expectation that increased training data and computational power would enhance performance, the reality is that these models have reached a plateau, yielding diminishing returns. Reports indicate that upcoming models like GPT-5 are not providing the anticipated advancements, primarily due to a scarcity of high-quality training data and an inherent flaw in the probabilistic nature of these models, which are prone to hallucinations—mistakes where they present incorrect information as fact. As a result, many existing products based on generative AI have not proven valuable or transformative, leading to a critical re-evaluation of their viability in practical applications.