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AI is ‘Effectively Useless,’ Veteran Analyst Warns – Fortune

The tendency of AI machines to invent facts, sources and details may prove a serious problem and cause it to have few viable outcomes, one analyst has warned

AI (Artificial Intelligence) letters and robot hand miniature in this illustration
AI (Artificial Intelligence) letters and robot hand miniature in this illustration. Photo: Reuters


James Ferguson, founding partner of research firm MacroStrategy Partnership, which is based in Britain, fears that investors could get badly burnt by the current wave of enthusiasm for artificial intelligence, according to a report by Fortune, which quotes him as saying the current fad has created a market bubble that is reminiscent of the dot-com era.

Ferguson argued that the tendency of AI bots or large language models to ‘hallucinate’ or invent facts, sources, and other details may prove a more serious problem than initially anticipated and cause AI to have far fewer viable outcomes, the report said, adding: “AI still remains, I would argue, completely unproven. And fake it till you make it may work in Silicon Valley, but for the rest of us, I think once bitten twice shy may be more appropriate for AI. If AI cannot be trusted… then AI is effectively, in my mind, useless.”

AI may also be too “energy hungry” to be a cost-effective tool for many businesses, and with Nvidia charging more and more for its chips, AI may end up being very expensive and “yet to prove anywhere really, outside of some narrow applications, that it’s paying for this,” Ferguson said.

Read the full report: Fortune.



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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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