Is AI Eating Its Own Tail? Meet Model Collapse

AI promised accurate insights but it seems it is rapidly becoming just another unreliable source of fake news.

AI search results are declining, plagued by inaccurate data, especially for financial statistics. Experts call this phenomenon “model collapse,” where AI trained on its own outputs gradually distorts information, creating unreliable results.

I first covered this in 2023 and now Bloomberg found Retrieval-Augmented Generation (RAG), designed to improve accuracy, actually increases risks, including:

• Leaking private client data.
• Creating biased market analyses.
• Producing misleading advice.

We’re at a turning point. Businesses leveraging AI for efficiency could unknowingly be accelerating misinformation and hallucinations. Navigating exponential change means questioning AI reliability now. Are we ready to handle AI’s increasingly flawed data?

Read the full article on The Register.

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