Experts Caution Entrepreneurs Against Over-Reliance On AI

Artificial intelligence (AI) has transformed industries, improved efficiency, and revolutionised approaches to complex challenges.

Despite its remarkable capabilities, experts have cautioned entrepreneurs against over-reliance on AI, emphasising that it cannot solve every problem. Speaking at a recent technology summit, Dr. Rachel Tan, a prominent AI researcher, highlighted the limitations of AI in addressing certain societal and scientific challenges.

“AI is a powerful tool, but it’s not a universal solution. It works exceptionally well for tasks involving pattern recognition, automation, and data analysis, but there are areas where human insight, ethics, and creativity remain irreplaceable,” he said.

Speaking on the limitations of AI technology, Tan said AI systems relied on high-quality, well-structured data to function effectively. According to him, “in cases where data is scarce, biased, or incomplete, AI’s performance can falter.

For example, deploying AI in developing regions with limited digital infrastructure often proves ineffective. “AI lacks moral judgment and cannot fully comprehend human values.

This makes it unsuitable for resolving ethical dilemmas or policy-making where diverse human perspectives must be weighed. Problems involving human emotions, culture, or subjective experiences often fall beyond AI’s capabilities.

For instance, while AI can assist in diagnosing mental health conditions, it cannot replace the empathy and nuance of human therapists.”

He added that many realworld problems were dynamic and influenced by unpredictable variables, stating, therefore, that AI models, designed to operate within predefined parameters, often struggle to adapt in such situations.

“While AI promises efficiency, developing and deploying robust AI systems remains expensive, leaving underserved communities without access to its benefits,” he stated.

Professor Mark Evans of the University of Cambridge added: “We must approach AI with a balanced mindset. It’s not about whether AI will replace humans but how it can complement human expertise and innovation.”

“While the hype surrounding AI presents it as the ultimate solution, understanding its true capabilities and limitations is crucial to avoid costly mistakes and seize real opportunities,” AI Adoption Specialist/Data Science Consultant, Peter Amoo, said.

He further stated: “When businesses either overestimate AI’s capabilities, expecting it to work wonders, or underestimate its potential, fearing disruption, they risk project failures or falling behind competitors in innovation.

For example, a retailer might implement AI for predictive analytics but struggle due to poor data quality. Meanwhile, a healthcare provider may delay AI adoption, fearing it will replace doctors, when in fact, it could enhance diagnostic accuracy.

Both scenarios highlight the need for a balanced understanding of AI’s strengths and limitations to fully leverage its potential.”

According to him, AI excels in certain areas, which include handling repetitive tasks, processing massive datasets, and uncovering patterns that humans might miss.

He highlighted the various ways AI can drive value for business such as data analysis and pattern Recognition; automating routine tasks; natural language processing (NLP); predictive analytics; as well as personalisation. He, however, noted that there were many other things AI cannot handle even in business.

He said AI could not understand context like humans, neither can it make complex, new decisions autonomously. “AI lacks common sense and emotional intelligence.

For example, a customer service chatbot may misinterpret sarcasm or fail to understand the cultural nuances in user queries, leading to customer frustration. “In unprecedented scenarios with no prior data or precedent, AI often fails to adapt.

For example, during COVID-19, AI systems struggled due to the lack of rele – vant historical data, highlighting their inability to make decisions in entirely new circumstances.” He added that AI could not work with limited or poor quality data, and will not replace human judgement in ethical dilemmas.

Meanwhile, to extract value from AI, Amoo said businesses must approach it strategically. Experts advocate for a collaborative approach, integrating AI as a tool to augment human decision-making rather than replace it entirely.