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The Unfixable: AI Limitations
2025 AI Ethics Report

THE UNFIXABLE
FLAWS

Why Artificial Intelligence is a magnifying glass for human error, not a cure for it.

Myth of the Magic Wand

In the frenzy of the current AI gold rush, a dangerous narrative has taken hold: the idea that AI is a “truth machine.” We assume that because a computer output is mathematical, it must be objective.

This is a fundamental misunderstanding. AI engines are engines of prediction based on historical data. And history is messy. If you feed an AI human history, you get a mirror that reflects every bias, prejudice, and logical fallacy we have committed for centuries.

“We risk creating systems that are highly confident, mathematically precise, and catastrophically wrong.”

The Capability Gap

Human vs. AI Intelligence Profile

Level 01

Bias

The Mirror Effect

Bias isn’t a “glitch”; it’s a feature of training data. An AI trained on arrest records doesn’t predict crime; it predicts arrest patterns. It acts as a statistical parrot.

📦 Case Study: Amazon

The Goal: Automate finding top talent by reviewing resumes.

The Failure: The AI taught itself that male candidates were preferable because most past successful resumes came from men. It penalized resumes containing the word “women’s” (e.g., “women’s chess captain”).

The Bias Amplification Loop

Level 02

Context

The Literalism Trap

Humans communicate in subtext, sarcasm, and silence. AI is Context Blind. It reads the text, but it does not read the room.

💬 The Chatbot Fail

“Great job deleting my account, geniuses.”

AI detects “Great” + “Geniuses” -> Positive Sentiment.
It triggers an automated “Thanks!” email, enraging the customer.

🏥 Healthcare Risk

“Patient is non-compliant with meds.”

AI assumes the patient is difficult. A human might see the context: the medication costs $500/month and the patient is unemployed.

Level 03

Quality

Garbage In, Apocalypse Out

There is a belief that AI cleans messy data. False. AI is a multiplier. If you feed it flawed data, it hallucinates connections.

📉 The Inventory Nightmare

A major retailer used AI to forecast demand. However, staff frequently forgot to scan “shrinkage” (theft/damage) items out of the system.

  • Data: System thinks 100 units are in stock. Reality: 0 units.
  • AI Action: Stops ordering more because “we have plenty.”
  • Result: Empty shelves for weeks, millions in lost sales, AI blamed for “bad predictions” when the data was the culprit.
Level 04

Ethics

The Ethics Gap

We can program machines to follow rules. We cannot program them to have a conscience. The Trolley Problem is no longer theoretical.

🚗 Self-Driving Dilemma

An autonomous vehicle detects a pedestrian stepping into traffic. It cannot stop in time. It has two choices:

  1. Swerve left into a concrete barrier (Risking the passenger).
  2. Stay straight (Hitting the pedestrian).

This is not an engineering problem; it is a moral one. Who decides the weighting? The engineer? The corporation? The government?

Public Trust Erosion After AI Failure

Level 05

Future

Human-in-the-Loop

We must stop treating AI as a replacement for human judgment and start treating it as a challenge to it. The most successful organizations won’t automate everything—they will build robust “Human-in-the-Loop” systems.

AI processes the ‘What’ and ‘How’ at lightning speed. But only a human can answer the ‘Why.’

Status: Humans Required

© 2025 AI Ethics Series

Ali Reza Rashidi
Ali Reza Rashidi
Ali Reza Rashidi, a BI analyst with over nine years of experience, He is the author of three books that delve into the world of data and management.

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