A major flaw in current AI is that models are frozen after training and don't learn from new interactions. "Nested Learning," a new technique from Google, offers a path for models to continually update, mimicking a key aspect of human intelligence and overcoming this static limitation.

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As AI's novelty fades, apps face high churn. The solution is personalization through memory and continual learning. This is a difficult systems problem because it requires a paradigm shift from today's stateless inference to a stateful model where weights are updated dynamically based on user interaction.

Even with vast training data, current AI models are far less sample-efficient than humans. This limits their ability to adapt and learn new skills on the fly. They resemble a perpetual new hire who can access information but lacks the deep, instinctual learning that comes from experience and weight updates.

The next major evolution in AI will be models that are personalized for specific users or companies and update their knowledge daily from interactions. This contrasts with current monolithic models like ChatGPT, which are static and must store irrelevant information for every user.

The popular conception of AGI as a pre-trained system that knows everything is flawed. A more realistic and powerful goal is an AI with a human-like ability for continual learning. This system wouldn't be deployed as a finished product, but as a 'super-intelligent 15-year-old' that learns and adapts to specific roles.

The current limitation of LLMs is their stateless nature; they reset with each new chat. The next major advancement will be models that can learn from interactions and accumulate skills over time, evolving from a static tool into a continuously improving digital colleague.

Solving key AI weaknesses like continual learning or robust reasoning isn't just a matter of bigger models or more data. Shane Legg argues it requires fundamental algorithmic and architectural changes, such as building new processes for integrating information over time, akin to an episodic memory.

Many AI projects fail to reach production because of reliability issues. The vision for continual learning is to deploy agents that are 'good enough,' then use RL to correct behavior based on real-world errors, much like training a human. This solves the final-mile reliability problem and could unlock a vast market.

The current focus on pre-training AI with specific tool fluencies overlooks the crucial need for on-the-job, context-specific learning. Humans excel because they don't need pre-rehearsal for every task. This gap indicates AGI is further away than some believe, as true intelligence requires self-directed, continuous learning in novel environments.

The key to continual learning is not just a longer context window, but a new architecture with a spectrum of memory types. "Nested learning" proposes a model with different layers that update at different frequencies—from transient working memory to persistent core knowledge—mimicking how humans learn without catastrophic forgetting.

A key gap between AI and human intelligence is the lack of experiential learning. Unlike a human who improves on a job over time, an LLM is stateless. It doesn't truly learn from interactions; it's the same static model for every user, which is a major barrier to AGI.