AI Fundamentals

AI Ethics & Limitations

Lesson 6 · AI Fundamentals

AI Ethics & Limitations

7 min

You'll be able to

  • Identify common sources of bias in AI
  • Explain why models can be confidently wrong
  • Reason about responsible AI use

AI is not neutral. A model learns from data created by people, so it can absorb and amplify human biases. If a hiring tool trains mostly on one demographic, it can encode unfair patterns — a serious risk that responsible builders design against.

Models also fail in ways that surprise. A large language model can produce fluent, confident-sounding answers that are simply wrong — a problem called hallucination. Learning to verify output is a core skill for every AI builder.

Key concerns

  • Bias — unfair outcomes baked in through unrepresentative data.
  • Hallucination — confident, fabricated answers.
  • Privacy — models trained on sensitive personal data.
  • Transparency — users deserve to know when AI is involved.

Responsible AI is a technical and human discipline: clean data, evaluation against biases, clear labels, and human oversight.

Challenge

Audit a system

Think of an automated decision that could go wrong if biased — e.g. credit scoring. Write down one way it could harm people and one mitigation.

Knowledge Check

Ethics & limitations

0/2 answered

What is a hallucination in a language model?

AI bias can enter a system through the data it was trained on.

Answer all questions to submit.

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