AI excels at exams, but lacks human theory-building skills

A new study challenges the growing belief that artificial intelligence will ultimately replace human decision-making. Teppo Felin of Huntsman School of Business and Matthias Holweg of Saïd Business School, University of Oxford, argue that AI’s reliance on past data differs fundamentally from human theory-based causal reasoning. The researchers highlight a critical distinction, framing it as where AI predicts based on probability while humans employ forward-looking logic. They illustrate this with the example of heavier-than-air flight, an innovation unlikely to emerge from a purely data-driven system. Current AI models also outperform more than 90% of humans in various professional qualification exams, such as the bar exam in law and the certified public accountant exam in accounting (Achiam et al. 2023). Human cognition prioritizes forward-looking theorizing, a process fundamentally…