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Altman Admits ChatGPT Isn’t Perfect, Cites Ongoing Privacy and Accuracy Concerns

OpenAI chief sounds a cautionary note on ChatGPT’s reliability, privacy features, and the challenges of building truly trustworthy AI.
Newton KitongaBy Newton KitongaJuly 2, 2025No Comments4 Mins Read
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TLDRs:

Contents

  • TLDRs:
  • Privacy Risks Surface as New Features Roll Out
  • Legal Pressures Add to OpenAI’s Balancing Act
  • Hardware and Trust Still Limit AI’s Full Potential
  • Altman warns users not to fully trust ChatGPT due to its potential for factual errors.
  • Privacy questions arise as OpenAI introduces memory features and explores monetization.
  • The CEO highlights ongoing hardware and reliability hurdles in building trustworthy AI.
  • Legal pressure mounts with lawsuits over training data, pushing OpenAI to adopt a more transparent tone.

OpenAI CEO Sam Altman has publicly acknowledged the limitations of ChatGPT, cautioning users against placing blind trust in the popular chatbot.

Speaking during the company’s official podcast, Altman emphasized that while recent iterations of ChatGPT continue to show progress, the system still occasionally generates false or misleading information, commonly referred to as “hallucinations” in the AI world.

This rare moment of candid reflection from the head of one of the world’s leading AI companies comes amid growing scrutiny over the technology’s real-world reliability and its broader societal impact. Altman stated that despite advances in model capabilities, ChatGPT remains far from perfect and is not yet ready to be fully relied upon for tasks requiring high levels of accuracy or judgment.

“People have a very high degree of trust in ChatGPT, which is interesting because AI hallucinates. It should be the tech that you don’t trust that much” said Altman.

Privacy Risks Surface as New Features Roll Out

The CEO also used the platform to address concerns around privacy stemming from recent feature additions, including persistent memory. These updates allow the chatbot to remember certain user preferences across sessions, which raises questions about how that data is stored and protected.

Altman stressed that OpenAI is committed to transparency and user control, but he acknowledged that the company must work harder to earn users’ trust, especially when experimenting with models that could potentially store sensitive data.

One of the more controversial ideas floated during the conversation was the potential for an ad-supported version of ChatGPT. While Altman did not confirm any concrete plans, he did note that exploring alternative revenue models could bring challenges, particularly if advertising influences the neutrality of the chatbot’s responses. The possibility of monetization through advertising has sparked debate among privacy advocates, who worry it could lead to profiling or compromised output integrity.

Legal Pressures Add to OpenAI’s Balancing Act

These admissions come at a critical time for OpenAI. The company is currently facing mounting legal challenges, including lawsuits from major media outlets like The New York Times over alleged copyright violations related to the way its models were trained.

Altman’s acknowledgment of ChatGPT’s flaws appears to be part of a broader effort to temper expectations and position the company as a responsible actor in a rapidly evolving landscape.

The AI industry has long oscillated between periods of extreme optimism and sobering recalibration. Altman’s remarks echo similar reality checks from earlier eras of artificial intelligence, where expectations often ran far ahead of what the technology could deliver. His warning follows a historical pattern in which rapid advances are inevitably met with hard questions about accuracy, accountability, and long-term viability.

Hardware and Trust Still Limit AI’s Full Potential

From a technical standpoint, Altman also pointed to underlying hardware limitations as a continuing bottleneck in AI development. He acknowledged that many existing computers were not designed to accommodate the kind of resource-intensive models that are now driving AI progress. This mismatch between software ambition and hardware capacity further complicates efforts to make AI more dependable.

Altman reaffirmed OpenAI’s intention to be open about these challenges, describing trust as something that must be earned rather than assumed. For a product that is increasingly embedded in everyday workflows, education, and research, this level of honesty marks a significant step in setting realistic expectations about what AI can and cannot do.

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