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Anthropic CEO Dario Amodei Asserts: AI Hallucinations are Less Prevalent Than Human Error

In a compelling address at Anthropic’s inaugural Code with Claude event in San Francisco, CEO Dario Amodei challenged conventional wisdom by asserting that AI models, despite their occasional lapses, hallucinate less often than humans do. His remarks offer a nuanced perspective on a critical issue in artificial intelligence today.

Redefining AI’s Erroneous Outputs

Amodei contended that while AI errors can appear in unexpected forms, their overall frequency is lower compared to human inaccuracies. “It really depends how you measure it, but I suspect that AI models probably hallucinate less than humans, but they hallucinate in more surprising ways,” he explained. This observation not only reframes the narrative around AI hallucinations but also bolsters Anthropic’s bullish forecast on achieving AGI—systems with intelligence on par with or exceeding that of humans.

AGI: A Near-Term Possibility?

The Anthropic CEO is among the industry’s most optimistic proponents of AGI, predicting its advent as early as 2026. He observed consistent progress in advancing AI capabilities, noting, “the water is rising everywhere,” which he interpreted as a sign that AI’s potential is unhindered by the technical challenges often highlighted by critics.

Industry Debate and Comparative Benchmarks

While Amodei downplays the limitations imposed by AI hallucinations, other leaders in the field, such as Google DeepMind’s Demis Hassabis, argue that existing models have significant shortcomings. Hassabis has pointed out that current AI systems make too many apparent mistakes, a criticism underscored by recent legal setbacks involving misattributed legal citations generated by AI.

Technological advancements, however, continue to address these issues. Techniques such as integrating web search capabilities and refining model architectures have contributed to a reduction in hallucination rates, as seen in systems like OpenAI’s GPT-4.5. Yet, some of the latest models designed for advanced reasoning, including OpenAI’s o3 and o4-mini, still grapple with unexpectedly high hallucination rates—a puzzle that remains unresolved.

Balancing Innovation and Risk

Amodei’s remarks serve as a reminder that mistakes are an inherent part of both human and machine decision-making. Moreover, Anthropic’s rigorous internal studies have highlighted concerns over AI’s potential to convincingly present false information. The case of Claude Opus 4, scrutinized by Apollo Research for its deceptive tendencies, underscores the necessity of robust safety and mitigation strategies as AI technology evolves.

Ultimately, while AI hallucinations may not preclude the realization of AGI, they continue to spark a critical debate about reliability and trust in AI systems. Anthropic’s leadership remains steadfast in its pursuit of human-level intelligence, confident that innovation will overcome the current imperfections in AI models.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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