Artificial intelligence (AI) is everywhere. It writes our emails, powers our navigation systems, recommends what we watch, and even drives our cars. The question is no longer whether AI can do something—it’s when it will. Over the decades, experts have confidently drawn lines in the sand, declaring that AI could never reason, understand language, or create art. Yet, time and again, those lines have been crossed.

If history has taught us anything, it’s this: never bet against AI.

But to understand what AI can—and still can’t—do, we must first understand what intelligence really means. This journey starts with something deceptively simple: data.


From Data to Wisdom: The Foundations of Intelligence

AI’s evolution mirrors how humans transform raw facts into understanding. Consider the Data–Information–Knowledge–Wisdom (DIKW) hierarchy, a classic model that explains how meaning is built:

  • Data are raw facts. Numbers like 10, 6, 42, and 8 are meaningless without context.
  • Information adds context: these numbers might represent the ages of people in a room.
  • Knowledge interprets information: most people in the room are under 21.
  • Wisdom applies that knowledge: perhaps we should plan age-appropriate games for them.

Each level builds upon the previous one—just as AI systems process vast datasets, interpret them, and begin to form higher-level insights. But while machines have long excelled at data and information, true wisdom—judgment, ethics, and understanding—remains elusive.


Breaking the Limits: What AI Can Do Today

When early AI researchers in the 20th century speculated about the future, they identified what they believed were insurmountable challenges. Today, most of those “impossible” feats have become everyday realities.

1. Reasoning and Problem Solving

For years, experts believed reasoning was beyond AI’s reach. That changed in 1997 when IBM’s Deep Blue defeated world chess champion Garry Kasparov. What had been dismissed as impossible—teaching a machine to strategize and solve complex problems—became a milestone in computational reasoning.

2. Understanding Language

Language was once considered the “final frontier” for machines. Human speech is full of idioms, nuance, and humor—expressions like “raining cats and dogs” that don’t translate literally. Yet, through breakthroughs in natural language processing (NLP), AI now holds conversations that feel surprisingly human.

The journey began in 1965 with Eliza, an early chatbot that simulated a therapist by responding with vague prompts. Decades later, IBM Watson stunned the world by winning Jeopardy! in 2011, decoding puns and double meanings in real time. Fast forward to today’s generative AI models, and we find systems that can not only understand our words but often anticipate what we mean next.

3. Creativity

Perhaps the most surprising breakthrough has been in creativity. For years, people claimed that machines could only imitate, not create. Yet today, AI composes music, paints original artwork, and writes stories. Critics argue these are just algorithmic mashups of existing data—but isn’t that what human creativity often is? Every artist and musician builds upon the influences that shaped them.

By recombining ideas in novel ways, AI demonstrates genuine creativity—and its output continues to evolve in complexity and emotional depth.

4. Real-Time Perception

Once confined to science fiction, real-time perception has become an everyday reality. Self-driving cars analyze their surroundings, predict movement, and make split-second decisions. Robots navigate complex environments, adjusting to obstacles and interpreting spatial cues. These systems don’t just see—they perceive the world and act on it.

5. Emotional Simulation

Even emotional intelligence—long considered a human domain—is being simulated. Modern chatbots can detect tone, sentiment, and mood, adapting their responses accordingly. While these systems don’t “feel” emotions, they often give the appearance of empathy. Some users even develop emotional connections with chatbots, blurring the line between simulation and experience.


Where AI Still Struggles

For all its progress, AI still has significant limitations. These aren’t signs of weakness—they’re frontiers waiting to be crossed.

1. Hallucinations and Truth

Generative models sometimes confidently assert falsehoods, known as hallucinations. These arise when systems try to predict plausible answers without sufficient context. Techniques like retrieval-augmented generation (RAG) and mixture-of-experts architectures are helping reduce such errors, but the problem isn’t fully solved.

2. Artificial General Intelligence (AGI)

Today’s AI systems are brilliant specialists, not generalists. They excel within specific domains but lack the flexibility and adaptability of the human mind. AGI—a system that matches human intelligence across all areas—remains theoretical. Beyond that lies Artificial Superintelligence (ASI), a machine surpassing human ability in every domain. For now, both are concepts rather than realities.

3. Sustainability

AI’s rapid progress comes with an environmental cost. Training large models consumes enormous amounts of energy and cooling resources. The future of AI depends not only on smarter algorithms but more sustainable ones—using models sized appropriately for their tasks and optimizing for energy efficiency.

4. Self-Awareness and Understanding

Does AI understand what it says? Or is it simply mimicking understanding? This isn’t just a technical question—it’s a philosophical one. Self-awareness, consciousness, and true comprehension remain mysteries, even in humans. For now, AI can simulate understanding, but whether it truly knows is still debated.

5. Judgment and Wisdom

The leap from knowledge to wisdom involves moral and contextual judgment—something that can’t be easily coded. AI struggles with ethical reasoning, subjectivity, and common sense—qualities humans also grapple with, but which are fundamental to decision-making.

6. Goal Setting and Motivation

AI can set micro-goals—steps toward completing a larger task—but it lacks intrinsic motivation. It doesn’t ask why. Humans define purpose; AI executes. Bridging this gap between how and why remains one of the most profound challenges ahead.

7. Emotion and Sensation

While AI can recognize emotional cues, it doesn’t feel them. It can describe joy, simulate empathy, and predict sadness—but it doesn’t experience those states. Similarly, sensory experience—taste, touch, smell—remains largely out of reach. These human dimensions are deeply tied to consciousness, another realm AI has yet to enter.


The Future: A Partnership Between Humans and Machines

AI is not our replacement—it’s our amplifier. Its role is to answer the “how” questions: How do we achieve a task efficiently? How can we process and act on massive amounts of data?

Our role as humans is to define the “what” and the “why.” What are we trying to accomplish? Why does it matter? Without human judgment, ethics, and purpose, even the smartest machine becomes an aimless tool.

AI’s story is one of exponential progress. For decades, it inched forward quietly. Then, almost overnight, it took off—reaching an inflection point where each breakthrough fuels the next. The line between what’s possible and impossible keeps shifting, faster than we can predict.

So, when someone says AI will never do something—reason like a human, compose great art, or feel empathy—remember history’s lesson.

Don’t bet against AI.

Author

Sebastian Zang has cultivated a distinguished career in the IT industry, leading a wide range of software initiatives with a strong emphasis on automation and corporate growth. In his current role as Vice President Partners & Alliances at Beta Systems Software AG, he draws on his extensive expertise to spearhead global technological innovation. A graduate of Universität Passau, Sebastian brings a wealth of international experience, having worked across diverse markets and industries. In addition to his technical acumen, he is widely recognized for his thought leadership in areas such as automation, artificial intelligence, and business strategy.