What are the main problems hindering current AI development?

One obstacle to the development of AI is the fundamental limitations of computer memory. Computers, at a fundamental level, can only work with bits. This limits the type of information that they can describe.

EDIT:

The precise nature and complexity of human memory isn't fully understood, but I would argue that at the very least, human memory is well adapted for the types of tasks that humans perform. Thus, computer memory, even if theoretically capable of representing everything that human memory can, is probably inefficient and poorly structured for such a task.

I am assuming by AI you mean AG(eneral)I, not machine learning or expert systems tuned for specific tasks.

In addition to @mindcrime's answer, sometimes we run out of samples to train and sometimes computers became so slow to process enough samples to work in manageable timescales. @bpachev mentioned memory but on the surface, our supercomputers have more than enough memory to store a human brain matrix. But we lack the ability to simulate it real time. After we are able to do that, we also need to connect external input, even more processing power is required for that. Even that would not be enough to simulate a human brain fully as biochemistry plays an important role.

One final note would be there is little incentive to develop AGI other than understanding how the human mind works. There are classification algorithms, expert systems, knowledge engines that can out-perform even the best humans for specific tasks.

1. we don't really know what intelligence is.

2. we don't truly understand the best model of intelligence we have available (human intelligence) works.

3. we're trying to replicate human intelligence (to some extent) on hardware which is quite different from the hardware it runs on in reality.

4. the human brain (our best model of intelligence) is mostly a black-box to us, and it's difficult to probe/introspect its operation without killing the test subject. This is, of course, unethical and illegal. So progress in understanding the brain is very slow.

Combine those factors and you can understand why it's difficult to make progress in AI. In many ways, you can argue that we're shooting in the dark. Of course, we have made some progress, so we know we're getting some things right. But without a real comprehensive theory about how AI should/will work, we are reduced to a lot of trial and error and iteration to move forward.

Several key challenges are currently hindering AI development:

Data Quality & Availability: AI models require large amounts of high-quality, relevant data. Many companies struggle with limited, biased, or unstructured data, which can affect the accuracy and fairness of AI systems.

High Development Costs: Developing advanced AI solutions often involves significant costs for data processing, infrastructure, and specialized talent. This makes it difficult for smaller businesses to invest in AI without the help of expert AI development services.

Lack of Skilled Talent: AI is a highly specialized field, and there’s a shortage of skilled professionals such as data scientists, machine learning engineers, and AI researchers. Many organizations turn to an experienced AI development company to fill this gap.

Ethical & Regulatory Concerns: AI systems can unintentionally produce biased outcomes, raising ethical questions. Additionally, evolving data privacy laws make it harder for companies to freely collect and use data.

Complexity of Integration: Integrating AI into existing systems and workflows is often complex. Companies need customized AI solutions that align with their business processes—this is where professional AI development companies can offer end-to-end support, from strategy to deployment.

By partnering with a trusted AI development company, businesses can overcome these challenges and unlock the full potential of AI technology.