During training sessions with clients, I am frequently asked questions like, “How intelligent is AI? Is it genuinely intelligent?” As with many topics related to AI, the answer is nuanced. My focus tends to be on the practical applications of AI for business, which often leads me to prioritise what is most valuable in a business context.
Questions such as, “Is AI truly intelligent?” or “Does it actually reason like a human?” are fascinating and deeply philosophical. However, from a business perspective, they are largely irrelevant. The real question for business leaders should be: Is AI valuable to me, my team, or my company? When properly utilised and understood by team members, AI can provide immense value to businesses, and this value will continue to grow at pace.
A succinct analogy I once heard, possibly from Eddie Izzard, captures an aspect of the answer well: “A toaster can make toast, but that doesn't mean it knows how to make toast”. Similarly, AI may not understand what it does—it doesn't feel emotions or know what it's like to stand on a beach, but it can write about both. Nevertheless, it can still be incredibly useful for day-to-day operations across all areas of a business.
It can simulate intelligence and simulate reasoning, and when used with AI-trained personnel, it can be incredibly powerful from a business perspective.
AI vs. Human Intelligence
Although I am very much pro-human, it is clear that AI already surpasses human abilities in several areas:
Knowledge: AI possesses a broader knowledge base than any single individual, having processed vast amounts of information from multiple sources.
Multilingual Capability: AI can communicate in more languages than humans.
Data Analysis: AI can analyse vast quantities of data at speeds that are unattainable by humans.
According to the Stanford University Artificial Intelligence Index Report 2024, AI has reached performance levels that exceed human abilities across a range of specialised tasks.
However, when it comes to more general reasoning or tasks that require cross-domain thinking, AI is still not as capable as a human. Common sense isn't so common, and that’s also true for AI, as it can oscillate between genius-level performance and rudimentary errors at times.
That said, it is essential not to engage in static thinking—AI is evolving rapidly, and what is true today may very well change tomorrow.
AI's Advancements in Mathematics and General Intelligence
Recent data from trackingai.org indicates that OpenAI's latest model now exceeds the average human intelligence range (IQ 85-115).
While it is true that some benchmarks have flaws, and may overstate aspects of AI, one thing that cannot be denied is the rapid rate of progress within the AI sector.
AI has made remarkable progress recently in mathematics, a domain where it has historically struggled. Notable recent achievements include:
Dutch High School Mathematics Exam: AI completed the exam in just 10 minutes, scoring 100%.
International Mathematical Olympiad: Google's AI attained a silver medal score when tested.
MENSA Qualification: AI scored an IQ of 120, making it the first non-human to qualify for this exclusive high-IQ society.
Despite the common belief that AI isn't as smart as humans, it is difficult to ignore these feats. I have yet to meet anyone who can pass law, medical, and mathematical exams simultaneously, in multiple languages, and do so in less than 30 minutes.
Within the AI field, current AI models are often described as operating at an “undergraduate level,” but the latest OpenAI model, referred to as 01, is now being compared to having PhD-level capabilities.
From a business perspective, it’s important to appreciate the current state of AI, its trajectory, its strengths and weaknesses, and how to use it properly.
If you are early in your AI journey and want to understand how AI's capabilities can benefit your business, whether in terms of team productivity, work quality, or strategic planning, please reach out at michael@advisorai.com.au