
Is AI Model Collapse Inevitable? Experts Warn of “Garbage In, Garbage Out” Problem
Is the AI revolution about to hit a major roadblock? While artificial intelligence continues to advance at breakneck speed, some experts are warning of a potential crisis looming on the horizon: AI model collapse. This phenomenon, where AI systems trained on their own outputs gradually lose accuracy, diversity, and reliability, could have far-reaching consequences.

According to a recent report in The Register, the signs of AI model collapse are already starting to appear. The article highlights a user's experience with AI-powered search tools, noting that when searching for specific financial data, the results often come from unreliable sources instead of authoritative 10-K filings.
"In particular, I'm finding that when I search for hard data such as market-share statistics or other business numbers, the results often come from bad sources," the report states. "Instead of stats from 10-Ks, the US Securities and Exchange Commission's (SEC) mandated annual business financial reports for public companies, I get numbers from sites purporting to be summaries of business reports. These bear some resemblance to reality, but they're never quite right."
This issue isn't limited to one specific AI tool. The Register notes that other major AI search bots are also returning "questionable" results, a clear indication of AI model collapse in action.
The problem stems from the fact that AI systems are increasingly being trained on their own outputs, creating a feedback loop of errors. As Amanda Stent, Bloomberg's head of AI strategy & research in the office of the CTO, explained, this increases the chance that RAG-enabled LLMs will leak private client data, create misleading market analyses, and produce biased investment advice.
One proposed solution is to mix synthetic data with fresh, human-generated content. However, as The Register points out, the availability of high-quality, human-generated content is a growing concern. With the rise of AI-generated content, it's becoming increasingly difficult to distinguish between reliable information and AI-generated "slop."
The implications of AI model collapse are significant. Not only could it lead to less accurate and reliable AI tools, but it could also erode trust in AI technology as a whole. As AI becomes more deeply integrated into our lives, it's crucial that we address this challenge head-on.
ChatGPT's own struggles with providing accurate information highlight this growing concern. When asked about the plot of a fictitious novel, the AI confidently replied that details about its storyline had not been disclosed, despite the book not actually existing. This illustrates how AI can be easily misled, leading to the spread of misinformation.
Model collapse is the result of three different factors. The first is error accumulation, in which each model generation inherits and amplifies flaws from previous versions, causing outputs to drift from original data patterns. Next, there is the loss of tail data: In this, rare events are erased from training data, and eventually, entire concepts are blurred. Finally, feedback loops reinforce narrow patterns, creating repetitive text or biased recommendations.
Are we headed for an AI winter? Will concerns about model collapse slow down the adoption of AI technology? Share your thoughts in the comments below.