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Types of AI Models and Their Drawbacks: Expert Insights and Case Studies

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AI models are everywhere. They power chatbots, automate decisions, and help businesses analyze data.  

But every AI model has limits. Some struggle with bias, others with transparency or data quality. 

This blog breaks down different types of AI models and their drawbacks.  

Instead of generic information, you will see real challenges, industry insights, and case studies that show what happens when AI models fail in the real world. 

1. Machine Learning Models and Their Drawbacks

Machine learning models analyze data and find patterns. Businesses use them for recommendations, fraud detection, and automation. Popular algorithms include, 

Regression Models 

Regression models predict continuous values. Businesses use them to forecast sales, stock prices, or housing market trends. 

➡️ Linear Regression 

➡️ Polynomial Regression 

➡️ Decision Trees 

Classification Models 

Classification models assign labels to data. They power fraud detection, medical diagnosis, and spam filters. Popular algorithms include, 

➡️ Logistic Regression 

➡️ Random Forest 

➡️ Support Vector Machines (SVM) 

Clustering Models 

Clustering models group similar data points. Businesses use them for customer segmentation, anomaly detection, and recommendation engines. Popular algorithms include, 

➡️ K-Means 

➡️ DBSCAN 

➡️ Hierarchical Clustering 

Drawbacks of Machine Learning Models 

1. Overfitting

Overfitting occurs when a model learns the training data too well and captures noise and outliers instead of the underlying pattern. This leads to poor performance on unseen data.​ 

For example, Google developed a model to predict flu outbreaks by analyzing search terms. Initially promising, the model overestimated peak flu rates by 140% in 2013.

The failure was due to the model’s reliance on correlations that didn’t hold over time. This demonstrates the dangers of overfitting to specific patterns in training data. ​ 

Google Flu Trends

2. Data Dependency and Quality Issues

Machine learning models heavily depend on the quality and representativeness of their training data. Poor data can lead to inaccurate predictions and unintended consequences.​ 

➡️ IBM Watson for Oncology

IBM’s AI system aimed to provide cancer treatment recommendations. However, it often suggested unsafe and incorrect treatments due to training on hypothetical data rather than real patient cases.

This highlights the critical importance of training models on accurate and comprehensive datasets. ​(STAT News) 

➡️ Google Health’s Diabetic Retinopathy Detection

Google Health implemented a deep learning model to detect diabetic retinopathy in patients. While it performed well in controlled settings, the model failed in real-world clinical environments which led to inaccurate diagnoses and referrals.

This underscores the challenge of models that perform well in training but falter when faced with the variability of real-world data. (TechCrunch) 

Google Health's Diabetic Retinopathy Detection

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2. Deep Learning Models and Their Drawbacks 

Deep learning models use neural networks to mimic human decision-making. They power image recognition, speech processing, and autonomous vehicles. 

Convolutional Neural Networks (CNNs) 

CNNs specialize in image processing. They detect objects, classify images, and enhance medical scans. Popular architectures are, 

➡️ AlexNet 

➡️ ResNet 

➡️ VGG 

Recurrent Neural Networks (RNNs) 

RNNs process sequential data like text, speech, and time series forecasting. Popular architectures are,

➡️ LSTM (Long Short-Term Memory)

➡️ GRU (Gated Recurrent Unit) 

➡️ Support Vector Machines (SVM) 

Transformers 

Transformers improve on RNNs by processing entire text sequences at once. They power large language models like ChatGPT and Google’s Bard. Popular architectures are, 

➡️ BERT 

➡️ GPT-4 

➡️ T5 

Drawbacks of Deep Learning Models 

1. Lack of Transparency

Deep learning models often function as “black boxes,” which makes it difficult to understand their internal decision-making processes. This opacity can lead to unintended consequences:​ 

Google’s DeepMind Atari Player

In 2015, DeepMind developed an AI capable of playing Atari games at superhuman levels.

Despite its impressive performance, the complexity of the deep learning model made it difficult for researchers to understand how the AI achieved such results. (The Word 360) 

2. High Computational Costs

Training and deploying deep learning models require substantial computational resources, which can be a barrier for many organizations:​ 

OpenWorm Project

The OpenWorm initiative aims to create a digital simulation of the nematode Caenorhabditis elegans.

Despite over a decade of work, accurately replicating the worm’s behavior and neurodynamics remains a challenge due to the immense computational power required.

This project underscores the difficulties in simulating biological organisms, even relatively simple ones. (Wired) 

OpenWorm

OpenWorm

3. Generative AI Models and Their Drawbacks

Generative AI creates text, images, and videos. Models like ChatGPT, DALL·E, and OpenAI’s Sora produce human-like content. 

Text-Based Models 

Text-based models generate human-like text by predicting the next word in a sequence. They are trained on vast amounts of text data which makes them useful for chatbots, content writing, programming assistance, and customer support. Popular models include, 

➡️ GPT-4

➡️ LLaMA

➡️ Claude 

Image-Based Models 

Image-based AI models generate artwork, product designs, logos, and even deepfake images. They learn from large datasets of images and use techniques like diffusion models to create new visuals. Popular models include, 

➡️ DALL·E  

➡️ Midjourney 

➡️ Stable Diffusion 

Video-Based Models 

Video generative models extend image generation by creating sequences of frames. They can be used for virtual avatars, synthetic media, and even AI-powered filmmaking. Popular models include, 

➡️ Sora 

➡️ Runway Gen-2 

Music and Audio Generative Models 

These models generate original music, voiceovers, and sound effects by learning from existing compositions and speech patterns. Popular models include, 

➡️ Jukebox (OpenAI) 

➡️ Riffusion 

➡️ AIVA 

➡️ Voicemod AI 

Drawbacks of Generative AI Models  

1. Bias and Ethical Concerns

Generative AI learns from internet data, which carries human bias.  

For instance, OpenAI’s video generation tool, Sora, has been criticized for perpetuating biases.

An investigation revealed that Sora produced videos reinforcing gender and racial stereotypes, such as depicting pilots and CEOs predominantly as men while portraying women in roles like flight attendants and receptionists.

Additionally, the tool struggled with diverse racial representations and often defaulted to portraying individuals as physically fit. These outcomes highlight the challenges in ensuring AI systems produce fair and unbiased content. ​(Wired) 

Misinformation

Generative AI tools have also been sources of misinformation.  

ChatGPT has produced fabricated historical claims, such as asserting that President Woodrow Wilson pardoned an individual named Hunter deButts — a person whose existence is unverified.

Such inaccuracies have been disseminated on social media, which underscores the risks of relying on AI-generated content without verification. (The Verge) 

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How to Reduce AI Model Failures? 

AI failures cost businesses time, money, and reputation.  

A 2023 study by Gartner found that 80% of AI projects fail after deployment due to a lack of monitoring, poor data quality, and unrealistic expectations.  

Here’s how to avoid failures. 

Reducing AI Model Failures

1. Test AI in Real-World Conditions

AI models that perform well in a lab often fail in production. The reason? Training data does not always reflect real-world complexity. 

Solution: 

✔️ Simulate real-world conditions before deployment. 

✔️ Run AI models in shadow mode alongside human decisions to compare results. 

✔️ Use real-time feedback loops to retrain AI models. 

2. Monitor AI Continuously 

AI models degrade over time. Data shifts, market conditions change, and user behavior evolves. Models that worked last year might fail today. 

Solution: 

✔️ Use AI observability tools to track model drift. 

✔️ Set performance benchmarks and trigger alerts for accuracy drops. 

✔️ Regularly retrain AI with fresh data. 

3. Train AI on Diverse and Updated Data 

AI models inherit biases from training data. If the data lacks diversity, the AI will make skewed decisions. 

Solution: 

✔️ Use diverse and representative datasets that reflect real-world scenarios. 

✔️ Regularly update training data to adapt to market changes. 

✔️ Conduct bias audits to identify and mitigate AI discrimination. 

4. Keep Humans in the Loop  

AI is not fully autonomous. Businesses that remove human oversight increase failure risks. 

Solution: 

✔️ Implement human-in-the-loop AI, where humans validate critical AI decisions. 

✔️ Set AI decision thresholds, allowing human intervention for uncertain cases. 

✔️ Train employees to understand AI outputs and flag anomalies. 

5. Ensure Regulatory and Ethical Compliance 

Regulations around AI are tightening. Failure to comply can lead to lawsuits and financial penalties. 

Solution: 

✔️ Follow AI regulations like the EU AI Act ↗️ and the U.S. Algorithmic Accountability Act. 

✔️ Document AI decision-making processes for auditability. 

✔️ Implement explainable AI (XAI) techniques to improve transparency. 

Build AI That Works in the Real World with Azilen. 

AI models bring automation, predictions, and content generation. But they also introduce risks — bias, errors, and failures in real-world conditions.  

Businesses using AI need more than just models. They need the right strategy to manage, monitor, and optimize AI performance. 

Being an enterprise AI development company, we specialize in ModelOps, MLOps, AI Agents, Generative AI, and Data Engineering.  

Here’s how we help. 

✅ Help businesses build AI that works in the real world, not just in a lab.  

✅ Streamline deployment, tracking, and performance tuning. 

✅ Build AI agents that operate autonomously and handle tasks with real-world adaptability. 

✅ Create AI-driven solutions for text, images, and automation. 

✅ Design and optimize data pipelines that fuel accurate and reliable AI decisions. 

If you want AI that delivers real results — without the typical failures — we have the expertise to make it happen.  

Let’s build AI that actually works. 

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Siddharaj Sarvaiya
Siddharaj Sarvaiya
Program Manager - Azilen Technologies

Siddharaj is a technology-driven product strategist and Program Manager at Azilen Technologies, specializing in ESG, sustainability, life sciences, and health-tech solutions. With deep expertise in AI/ML, Generative AI, and data analytics, he develops cutting-edge products that drive decarbonization, optimize energy efficiency, and enable net-zero goals. His work spans AI-powered health diagnostics, predictive healthcare models, digital twin solutions, and smart city innovations. With a strong grasp of EU regulatory frameworks and ESG compliance, Siddharaj ensures technology-driven solutions align with industry standards.

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