Business

The AI paradox: Between democratization, information overload, and the frontier effect

"As soon as it works, no one calls it AI anymore" - lamented John McCarthy, who invented the term. Computer vision, voice recognition, translation: they were cutting-edge AI; now they are taken for granted functions of the phone. It is the paradox of the frontier: intelligence is not something to be captured, but a horizon we turn into useful tools. AI takes us to 90 percent-humans handle the edge cases. Becoming "technology" is the real recognition for an idea that was at the forefront of the possible.

Artificial intelligence: between illusory promises and real dystopias

Artificial intelligence has gone through many cycles of excitement and disappointment. Today we are in an upswing, thanks to the development of large language models (LLMs) based on the Transformer architecture. This architecture is particularly well suited for GPUs, making it possible to use immense amounts of data and computing power to train models with billions of parameters.The most notable consequence is the creation of a new user interface for computers: human language.

Just as the graphical user interface made the personal computer accessible to millions of users in the 1980s, new natural language interfaces have made AI accessible to hundreds of millions of users worldwide in the past year.

The myth of true democratization

Despite this apparent accessibility, the "democratization" promised by SaaS solutions remains imperfect and partial, creating new forms of inequality.

AI still requires specific skills:

- AI literacy and understanding the limitations of systems

- Ability to critically evaluate outputs

- Business process integration skills

The AI effect and the paradox of the frontier

John McCarthy coined the term AI in the 1950s, but he himself complained, "As soon as it works, no one calls it AI anymore." This phenomenon, known as the "AI effect," continues to influence us today.

The history of AI is littered with successes that, once they become sufficiently reliable, are no longer considered "smart" enough to merit the aspirational appellation.

Examples of technologies that were once considered cutting-edge AI and are now taken for granted:

- The computer vision that is now built into every smartphone

- Voice recognition, now simply "dictation"

- Language translation and sentiment analysisRecommendation systems (Netflix, Amazon) and route optimization (Google Maps)

This is part of a larger phenomenon that we can call the "frontier paradox."

As we attribute to humans the frontier beyond our technological mastery, this frontier will always be ill-defined. Intelligence is not something we can capture, but an ever-approaching horizon that we turn into useful tools.

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AI and information overload

The spread of generative AI has drastically reduced the cost of producing and transmitting information, with paradoxical effects with respect to the goals of civic participation.

The crisis of synthetic content

The combination of generative AI and social media has created:

- Cognitive overload and amplification of pre-existing biases

- Increased social polarization

- Ease of manipulation of public opinion

- Proliferation of fake content

The problem of the "black box"

Simplified interfaces hide the workings of AI:Poor understanding of automated decision-making processesDifficulty identifying algorithmic biases

Limited customization of underlying modelsThe importance of human-led automated intelligenceAI can only take us 90% of the way there.

Machines excel at analyzing large volumes of data, but struggle with edge cases. One can train algorithms to handle more exceptions, but beyond a certain point the resources required outweigh the benefits. Humans are precise thinkers who apply principles to edge cases, while machines are approximators who make decisions based on prior

From hype to disillusionment: the cycle of AI

As described by Gartner in technology hype cycles, wild enthusiasm is invariably followed by disappointment-the "valley of disillusionment."

Founders benefit in the short term from eye-catching marketing, but at a cost.Alan Kay, computer science pioneer and Turing Prize winner, said, "Technology is technology only for those born before it was invented." Machine Learning professionals are scientists and engineers, yet their efforts always appear like magic-until one day they are not.

Homogenization and loss of competitive advantageWidespread adoption of the same pre-built SaaS solutions results in:Convergence to similar business processesDifferentiation difficulties through AIInnovation limited by platform capabilitiesData persistence and its risks

With the accessibility of generative AI platforms:Data persist over time in digital infrastructureData points can be reused in different contexts

A dangerous cycle is created when future generations of AI are trained on synthetic content.

The new digital divide

The AI market is dividing into:

- Commodity AI: standardized solutions available to many

- Proprietary advanced AI: cutting-edge capabilities developed by a few large organizations

The need for a more precise vocabulary

Part of the problem lies in the very definition of "Artificial Intelligence."

If we break down the term recursively we find that each branch of the definition refers to "humans" or "people." By definition, then, we think of AI as imitative of humans, but as soon as a capability firmly enters the realm of machines, we lose the human reference point and stop considering it AI.

It is more useful to focus on specific technologies that can be put to work, such as transformers for language models or diffusion for image generation. This makes our ability to evaluate an enterprise much more explicit, tangible, and real.

Conclusion: From frontier to technology

The frontier paradox means that AI is accelerating so rapidly that soon it will simply be technology, and a new frontier will become AI. Becoming "technology" should be seen as recognition for an idea that was previously at the cutting edge of the possible.This article was inspired in part by Sequoia Capital's reflections on the AI paradox.

For more information: https://www.sequoiacap.com/article/ai-paradox-perspective/

The real promise of accessible AI is not simply to make technology available, but to create an ecosystem in which innovation, control and benefits are authentically distributed.

We need to recognize the tension between access to information and the risks of overload and manipulation.

Only by maintaining a strong human element in artificial intelligence and adopting a more precise language can we realize its potential as a force for truly distributed inclusion and innovation.

Resources for business growth

November 9, 2025

Regulating what is not created: does Europe risk technological irrelevance?

Europe attracts only one-tenth of global investment in artificial intelligence but claims to dictate global rules. This is the "Brussels Effect"-imposing regulations on a planetary scale through market power without driving innovation. The AI Act goes into effect on a staggered timetable until 2027, but multinational tech companies respond with creative evasion strategies: invoking trade secrets to avoid revealing training data, producing technically compliant but incomprehensible summaries, using self-assessment to downgrade systems from "high risk" to "minimal risk," forum shopping by choosing member states with less stringent controls. The extraterritorial copyright paradox: EU demands that OpenAI comply with European laws even for training outside Europe-principle never before seen in international law. The "dual model" emerges: limited European versions vs. advanced global versions of the same AI products. Real risk: Europe becomes "digital fortress" isolated from global innovation, with European citizens accessing inferior technologies. The Court of Justice in the credit scoring case has already rejected the "trade secrets" defense, but interpretive uncertainty remains huge-what exactly does "sufficiently detailed summary" mean? No one knows. Final unresolved question: is the EU creating an ethical third way between U.S. capitalism and Chinese state control, or simply exporting bureaucracy to an industry where it does not compete? For now: world leader in AI regulation, marginal in its development. Vaste program.
November 9, 2025

Outliers: Where Data Science Meets Success Stories.

Data science has turned the paradigm on its head: outliers are no longer "errors to be eliminated" but valuable information to be understood. A single outlier can completely distort a linear regression model-change the slope from 2 to 10-but eliminating it could mean losing the most important signal in the dataset. Machine learning introduces sophisticated tools: Isolation Forest isolates outliers by building random decision trees, Local Outlier Factor analyzes local density, Autoencoders reconstruct normal data and report what they cannot reproduce. There are global outliers (temperature -10°C in tropics), contextual outliers (spending €1,000 in poor neighborhood), collective outliers (synchronized spikes traffic network indicating attack). Parallel with Gladwell: the "10,000 hour rule" is disputed-Paul McCartney dixit "many bands have done 10,000 hours in Hamburg without success, theory not infallible." Asian math success is not genetic but cultural: Chinese number system more intuitive, rice cultivation requires constant improvement vs Western agriculture territorial expansion. Real applications: UK banks recover 18% potential losses via real-time anomaly detection, manufacturing detects microscopic defects that human inspection would miss, healthcare valid clinical trials data with 85%+ sensitivity anomaly detection. Final lesson: as data science moves from eliminating outliers to understanding them, we must see unconventional careers not as anomalies to be corrected but as valuable trajectories to be studied.