Don’t bet against AI — unless you want to be wrong again.

A deep dive into what AI can do, what it still can't, and why underestimating it has always been a losing bet.

Don’t bet against AI — unless you want to be wrong again.
H
Hirely
November 26, 20253.84 min read

Artificial intelligence is everywhere right now. In your phone, in your car, even writing emails for you. You may be wondering if there are actually any limits to what AI can do.

I’ve heard many people over the last few decades confidently assert AI can do certain things, but it’s never going to be able to do this or that. Guess what most of those predictions have in common? They were wrong.

The past few years have shown exponential growth in AI capabilities, bringing it from the research lab to everyday life. It’s doing most of those things that so many thought it never would — or even could do.

Of course, many limitations still exist, but my advice is simple:

> Don’t bet against AI, unless of course you want to be wrong.

Understanding Knowledge: From Data to Wisdom

To understand AI’s real power, we first need to understand something fundamental: the difference between data, information, knowledge, and wisdom.

1. Data

Raw, unprocessed facts. Example: 10, 6, 42, 8

On their own, they mean nothing.

2. Information

Add context: These numbers represent the ages of people in a room.

Now they start to mean something.

3. Knowledge

Add interpretation: We observe that most people in the room are under 21 years old.

Now we understand something.

4. Wisdom

Now we apply that knowledge: Let’s choose age-appropriate games for this group.

That’s wisdom: using knowledge to make good decisions.

Another way to see it:

  • Data → Database
  • Information → Information systems
  • Knowledge → AI
  • Wisdom → Human judgment (still unmatched)

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The “Limits” of AI That No Longer Exist

Once upon a time, people believed these were impossible for AI:

1. Reasoning

In 1997, IBM’s Deep Blue defeated chess champion Garry Kasparov. A clear case of advanced reasoning and problem-solving.

2. Language Understanding

Computers “could never understand humans,” they said.

Then came:

  • ELIZA (1965)
  • IBM Watson (2011) dominating Jeopardy
  • Today’s generative AI understanding nuance, tone, and context

AI doesn’t just process text — it interprets it.

3. Creativity

People said AI couldn’t create anything original.

Now it writes:

  • Music
  • Art
  • Books
  • Code

Just like humans, it builds on what already exists. Does that make it less creative? Not really.

4. Real-Time Perception

Self-driving cars and modern robots are doing this in real time:
  • Seeing
  • Predicting
  • Reacting
  • Adjusting

What was fiction is now reality.

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What AI Can Do… But Not Perfectly

These areas are partially solved:

Emotional Intelligence (EQ)

Modern AI can:
  • Detect moods
  • Adjust tone
  • Simulate empathy

Is it real emotion? No. But is it effective? Often yes.

Hallucinations

When AI gives confident but false answers.

Progress is happening through:

  • Retrieval-Augmented Generation (RAG)
  • Mixture of Experts
  • Model chaining

Not solved yet — but improving fast.

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The Real Limits of AI (For Now)

Here’s where AI still struggles:

1. Artificial General Intelligence (AGI)

AI is brilliant in specific tasks, but not yet human-level across all domains.

2. Artificial Superintelligence (ASI)

More intelligent than humans in every way? Still science fiction.

3. Sustainability

AI models consume massive energy. Future progress depends on efficiency, not just size.

4. Self-Awareness

Does AI know it exists? That’s more philosophy than engineering.

5. True Understanding

Does AI really understand what it says, or is it just predicting words?

Still an open question.

6. Moral Judgment & Ethics

Making ethical decisions is hard… even for humans.

Teaching machines to do it reliably is even harder.

7. Common Sense

Ironically, one of the least common things.

AI is improving, but far from perfect.

8. Deep Emotions

AI can simulate empathy, sadness, joy… But does it feel them?

No. Not yet.

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Humans vs AI: Who Does What?

The future isn’t humans vs AI — it’s humans with AI.

Humans should focus on:

  • Why we do things
  • What really matters
  • Meaning, purpose, direction

AI should handle:

  • The how
  • Automation
  • Execution
  • Optimization

Humans define the destination. AI helps with the route.

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Final Thought

AI’s progress didn’t happen linearly. It crawled for decades… then it exploded.

And now we’re living in the acceleration.

There are still limits. There are still unknowns. But history tells us one thing clearly:

> Every time people bet against AI, they lost.

So again…

Don’t bet against AI — unless you want to be wrong again.