CNBC's Jim Cramer recently took to social media to highlight the “hallucination” hurdles still facing artificial intelligence (AI), revealing that while he remains an AI optimist, the technology's struggle with basic facts remains a significant barrier to professional trust.
Cramer shared insights from a recent conversation with Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang, noting that the current state of AI is roughly 90% accurate.
While that figure sounds impressive for general tasks, Cramer argued that the remaining 10% creates a “gap” that prevents the technology from being ready for high-stakes environments.
“I am not a Luddite,” Cramer posted on X. “But as someone named Jensen Huang told me not that long ago, about 90% of what we get from AI right now is right. So, I will grow more confident as we close that gap.” He added a realistic timeline for this evolution, noting, “we will… but not this year, or maybe next.”
To illustrate the problem, the Mad Money host detailed a series of errors he encountered while using Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Gemini.
Despite his Philadelphia roots, the AI insisted he was from Rockport, Massachusetts, and even labeled him an “unofficial spokesperson” for the city.
“I have never been to Rockport, Mass and I am from Philadelphia,” Cramer clarified. He joked about the bot’s confidence in its errors, questioning if he would soon find out he is a “Patriots season ticket holder” as well.
Beyond personal anecdotes, Cramer questioned the viability of current AI models like Gemini and Anthropic's Claude for industries where precision is mandatory.
“I know AI will get better but can someone tell me one major law firm that would rely on this stuff for a real, paying client and still be able to sleep at night?” Cramer asked.
He concluded that while AI is excellent for summaries and stock histories, “guessing's for jokers where I'm from,” suggesting the tech is still “closer and closer” but not yet a reliable “ringer.”
As of Friday’s close, the Dow Jones index rose 2.31% year-to-date, whereas the S&P 500 was 0.33% lower and the Nasdaq Composite index was down 2.97% in 2026.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Friday. The SPY was up 0.07% at $681.75, while the QQQ declined 0.21% to $601.92.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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