What are the Limitations of AI?

From tech challenges to ethical dilemmas, we unravel the factors shaping the future of AI

Hi, I’m Danielle Turner, Welcome to the Property AI Tools newsletter where I share weekly deep dives into AI topics, the latest AI tools and news, all specifically for real estate.

If you’re at a roadblock and don’t know where to start with using AI in your real estate business, schedule a 1-1 discovery call.

Today I’ll be exploring:

  • A breakdown of the technical limitations of AI

  • The ethical challenges if AI and the risks of job displacement

  • The social limitations of AI and the impact on trustworthiness

LATEST TECH NEWS

📰Report highlights security risks of DeepSeek AI Models
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📰California’s new AI safety regulation goes live
The new bill forges a balance between innovation and safety, solidifying California’s stance trustworthy AI.

📰Meta plans to use your AI chats to personalise your feed 
Tracking your activity across all platforms to deliver maximum personalisation on your timeline.

EVENTS

Technical Limitations of AI

As artificial intelligence continues to develop, it faces technical constraints that hold back its potential. These limitations stem from how AI systems are designed and interact with the data and environments they are presented with. Here we explore some of the key technical challenges preventing AI systems from achieving flawless performance.

Data Dependency

At the heart of AI's learning capability is data, but what happens when the data isn't up to scratch? AI heavily relies on the quality and availability of data to learn and make decisions effectively. If the data used for training is flawed, biased, incomplete or low quality, you can be sure the AI's decisions and output will reflect that. Prioritising organising your company’s data and making it accessible for AI innovation will help you to get a head start at overcoming this limitation.

Algorithmic Bias

Have you ever noticed how AI responses in ChatGPT can sometimes seem a bit...partial? That's algorithmic bias for you. AI tends to inherit biases present in its training data, leading to skewed responses that can affect fairness and accuracy. For example, a hiring algorithm trained on past employee data skewed towards one demographic. What happens? It perpetuates those biases in it’s output, potentially eliminating equally qualified candidates from the recruitment process. As AI becomes more embedded in human decision-making systems, addressing and mitigating these biases will become more crucial than ever.

Lack of Common Sense Reasoning

Confused Common Sense GIF by Pudgy Penguins

Gif by pudgypenguins on Giphy

While AI may excel in pattern recognition and data processing, it significantly lacks what we humans take for granted, common sense. AI may be able to master chess or solve complex equations, but it struggles with basic common sense reasoning that would be easy for a child to grasp. It lacks the innate understanding of real-world experiences and social expectations.

This limitation makes it challenging for AI to navigate tasks requiring emotional intelligence such as negotiating a sale or dealing with tenant late on rent payments. Once AI reaches superintelligence and Artificial General Intelligence (AGI) has been achieved, this flaw may become less of an issue. Until then, common sense is one of the main traits that separates human intelligence from artificial intelligence. Explore What is Artificial General Intelligence? to understand this concept in more detail.

Limited Understanding of Context

AI often stumbles in understanding complex contexts. Whether it's interpreting sarcasm or understanding cultural tendencies, AI's capability to decode context is limited. When language and decisions heavily rely on context, body language, tonality and more, like in negotiations or emotional conversations, AI often misses the mark.

This shortcoming means AI can misinterpret commands or give inappropriate or disproportionate responses, making its application tricky in situations that require a deeper understanding of human communication.

Ethical Limitations of AI

Privacy Concerns

AI thrives on data, but this often clashes with individual privacy rights. With AI systems collecting vast amounts of personal information, there's a growing worry about how this data is used and stored. With AI-powered devices in homes or smart assistants on phones, constantly gathering data to "improve" user experience. What happens when this information falls into the wrong hands or is used for purposes beyond its original intent?

AI makers and operators, including businesses like yours, must strike a balance by implementing safeguards to uphold user privacy while still functioning effectively. So, what is ethical AI?. The trust between consumers and AI systems relies on transparent data practices. Without it, users may feel like they're under constant surveillance, sacrificing their privacy for convenience.

chicken or the egg

Accountability Issues

When AI makes a decision, who is held accountable? Accountability is one of the issues of AI. If an AI system causes harm or makes a mistake, identifying who is responsible can be a tricky process. Is it the developer, the company deploying the system, or the AI itself?

Unclear accountability within your company can lead to both legal and ethical dilemmas. In situations where AI decisions have significant consequences, like hiring employees, autonomous vehicles or diagnostic tools; understanding who answers when things go wrong becomes crucial. Explore how Real Estate professionals are approaching compliance in our article on Regulating AI in Real Estate: Building an Ethical AI Governance Framework.

Job Displacement Risks

Automation and AI are revolutionising work as we know it, but not without repercussions. As AI becomes more capable, it will replace human roles, sparking fears of job loss across various sectors. While automation can increase efficiency, it raises ethical questions about the future of employment.

What happens to those whose jobs are made redundant? How do we support individuals transitioning to new roles in an AI-driven world? These questions highlight the need for policies that address workforce transformations. Preparing workers for shifts in employment and ensuring access to upskilling opportunities are vital steps in helping employees learn How to Make Yourself Irreplaceable .

The ethical considerations surrounding AI demand careful navigation. By understanding these challenges, you can focus on technological advancements that empower rather than displace, protect rather than infringe, and assign accountability clearly and fairly within your organisation.

Social Limitations of AI

Public Perception and Trust

Why is there lack of trust in AI? It's partly because many associate AI with job losses, privacy invasion, or even dystopian futures depicted in films. This scepticism can hinder AI's implementation and development, as public fear translates into resistance against adopting new technologies.

When AI makes decisions that impact livelihoods, such as in hiring processes or credit scoring, the distrust grows. People are wary of relinquishing control to machines perceived as lacking empathy or fairness. Building trust demands transparency and clear explanations of how AI algorithms work and how they make decisions.

Digital Divide

The digital divide represents a significant barrier, with unequal access to technology limiting AI's advantages across different segments of the world. While some people benefit from high-speed Wi-Fi and the latest devices, others are unable to reap the benefits that AI promises in fields like housing, healthcare, education, or employment.

Governments and organisations need to collaborate to break down these barriers, ensuring everyone can harness the power of AI for meaningful advancements in their lives.

Conclusion

Think big and explore innovative, problem solving solutions with AI but always keep present day limitations in mind. Remember, the technology is changing by-the-month and advancements that were impossible 12 months ago are now an everyday occurance.

With technology moving so fast, it’s inevitable that you may hit a roadblock in figuring out the best way to use AI. Deciding on which tool is best for the job will can be a long, drawn out process.

If you’re ready to take your real estate business to the next level with AI, schedule a call with me to explore the AI Strategy Launchpad. My next level framework for taking your business from AI zero to having a clear, focussed roadmap for AI implementation.

Thanks for reading!

Danielle 
Property AI Tools Founder | AI Consultant @ Caique

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