Everything on Cognitive Limitation

Current LLMs are limited to associative learning (Shannon entropy) and cannot perform causal reasoning or simulation. They identify patterns but do not understand the underlying mechanisms causing those patterns.

Impact: Businesses must not rely on LLMs for complex strategic forecasting or causal analysis without human oversight, as the models lack true understanding of cause and effect.

— from LLM Architecture Limits and the Path to AGI · a16z Podcast· Mar 17, 2026