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AI Models Are Powerful, But They’re Not “Thinking” Like Humans, Researchers Say

by Team Lumida
April 26, 2025
in AI
Reading Time: 5 mins read
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China’s AI Startups Challenge Global Leaders Amid U.S. Trade Curbs

"Artificial Intelligence 2017 San Francisco" by O'Reilly Conferences is licensed under CC BY-NC 2.0

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Key Takeaways:

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  • AI models like ChatGPT and others simulate intelligence by memorizing vast “bags of heuristics” (problem-solving shortcuts) rather than reasoning like humans.
  • Research shows AI struggles with flexibility, relying on cobbled-together rules rather than building efficient mental models of the world.
  • Examples include AI’s flawed navigation of Manhattan, where it memorized turn-by-turn directions but failed when detours were introduced, and its inefficient methods for solving math problems.
  • AI’s reliance on massive datasets and memorization explains why models require enormous amounts of data and processing power compared to humans, who learn through reasoning and fewer examples.
  • While AI’s performance may be plateauing, researchers believe understanding its limitations can lead to better training methods and more trustworthy systems.

What Happened?

Despite the impressive capabilities of AI models like ChatGPT, researchers argue that these systems are far from achieving human-like intelligence. Instead of reasoning like humans, AI relies on memorizing vast numbers of rules and applying them selectively. This approach, while effective for specific tasks, limits AI’s flexibility and adaptability.

For example, a study on AI’s navigation of Manhattan revealed that the model memorized turn-by-turn directions but created an inaccurate mental map of the city, including impossible routes. When researchers introduced detours, the AI’s performance dropped significantly, highlighting its inability to adapt to new situations.

Similarly, AI’s approach to math involves memorizing separate rules for different ranges of numbers, rather than applying general principles. This inefficiency underscores the limitations of current AI architectures, which require massive datasets and processing power to function.


Why It Matters?

The findings challenge the notion that AI is close to achieving artificial general intelligence (AGI), or human-level intelligence. While AI models excel at specific tasks, their reliance on memorization and lack of reasoning make them less adaptable than humans.

Understanding these limitations is crucial for improving AI systems. Researchers believe that addressing the inefficiencies in how AI “thinks” could lead to more accurate, trustworthy, and controllable models. This is particularly important as AI becomes increasingly integrated into everyday life and critical industries.

The research also highlights the need for realistic expectations about AI’s capabilities. While some industry leaders predict rapid advancements toward AGI, the current evidence suggests that AI’s progress may be leveling off, with further breakthroughs requiring fundamental changes in how models are designed and trained.


What’s Next?

AI researchers are focusing on “mechanistic interpretability,” a field that aims to understand how AI models process information and solve problems. Insights from this research could lead to new training methods that make AI more efficient and adaptable.

Meanwhile, developers are exploring ways to refine existing models to improve their accuracy and reliability. As AI continues to evolve, balancing its impressive capabilities with its limitations will be key to ensuring its safe and effective use.

For now, AI remains a powerful tool, but its journey toward true human-like intelligence is far from complete.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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