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AI is Context and Cost and Can be Wrong with Great Confidence

Michael Reid by Michael Reid
18 April 2026
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Artificial intelligence has settled into something far more consequential than novelty. In 2026, it is a working tool, widely available, increasingly capable, and already embedded in how people write, research, analyse and communicate. The question is no longer whether AI is useful. It is whether it is being used properly.

The most common mistake remains a simple one: treating AI like a search engine. A blank prompt, a vague question, and a generic answer in return. The outcome reflects the input. AI does not reward vagueness. It responds to context.

This straightforward set of commands is a good start. Establish who you are, what you are trying to achieve, what context matters, and how the answer should be delivered. Clear instruction consistently outperforms clever prompting. The more precisely the task is framed, the more useful the output becomes.

In simpler terms: once the writing is done, and I very much do the writing, I type in at the end — spelling, grammar, flow and logic — and Claude becomes my first editor.

The tools themselves are now broadly familiar. Platforms such as ChatGPT, Claude and Gemini handle writing, summarising, coding, research and ideation with increasing competence. More significantly, they are evolving beyond passive response systems into tools capable of executing multi-step tasks — drafting, analysing, organising and reporting. What was once a conversational interface is moving closer to something resembling a junior colleague.

This shift is already visible in how work is being done. Smaller teams are producing outputs that previously required far greater scale. AI absorbs much of the repetitive and time-consuming labour, allowing people to focus on judgement, direction and client-facing activity. The efficiency gains are real, and they are compounding.

However, two practical realities sit just beneath the surface of the optimistic narrative.

The first is cost.

The most capable versions of these tools are not free. Entry-level access provides a useful introduction, but it is meaningfully constrained — slower responses, lower accuracy, limited usage. The tools that genuinely transform productivity sit behind subscription models. Individually, these costs may appear modest. In aggregate, they are not insignificant.

The benefits of AI are therefore not evenly distributed. Those who invest in higher-tier access and take the time to understand how to use it effectively operate at a different level of speed and output. The idea that AI is “available to everyone” is technically correct, but practically incomplete.

The second reality is more critical.

AI produces answers with fluency and authority regardless of whether those answers are correct. It does not hesitate, qualify, or express uncertainty in the way a cautious human might. This is not a temporary flaw that will simply disappear with further development. It is inherent to how these systems function.

However, AI generates language based on probability, not verification.

For routine, low-risk tasks, this presents a manageable limitation. For anything involving legal interpretation, medical understanding, financial decisions or reputational risk, it becomes a serious concern. The output may read convincingly. It may even be correct most of the time. But “most of the time” is not sufficient when the stakes are high.

The practical discipline required is uncomplicated, though often overlooked: AI should be treated as a first draft, not a final answer. It is a tool to accelerate thinking, not replace it. Where accuracy matters, verification remains essential — through primary sources, qualified professionals, or authoritative documentation.

When asking for a comment on what I have written, or indeed undertaking research, I clearly instruct my AI — “Do not make things up.” I will also routinely flick what has been produced by ChatGPT across to DeepSeek and Claude. Yes, I get these AI platforms competing, cross-referencing and triple-checking each other. The little devils know they are doing it too and work hard to outshine their competition.

At the same time, the broader information environment is shifting. The cost of producing convincing misinformation has fallen dramatically. Synthetic text, audio and video are no longer confined to well-resourced actors. They are accessible, affordable and improving quickly.

The long-held assumption that seeing or hearing something provides reasonable evidence of its authenticity is becoming unreliable. This does not require wholesale distrust, but it does require a more deliberate approach to information. Questions of source, intent and verification — long familiar in written media — now apply equally to visual and audio content.

None of this suggests AI should be approached with caution to the point of avoidance. The opposite is true. The individuals and organisations deriving the greatest benefit are those who have taken the time to understand what the technology is — and what it is not.

AI is not an oracle. It is not a substitute for expertise. It is a powerful, fast, and increasingly capable system that performs best when guided by clear human judgement.

The divide emerging is not between those who have access to AI and those who do not. It is between those who understand how to work with it and those who do not. Over the next 12 to 24 months, that difference will become visible in output, efficiency and, ultimately, commercial results.

Clients will not analyse the cause. They will simply respond to the outcome — choosing the operator who is faster, clearer and more effective.

Used well, AI is one of the most powerful productivity tools currently available. Used carelessly, it is a highly efficient way to generate error at scale.

The distinction lies not in the technology itself, but in the judgement of the person using it.

Tags: AI accuracyAI accurcyproblems with AI
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Michael Reid

Michael Reid

Michael Reid OAM is a distinguished Australian art dealer and gallery owner, renowned for championing contemporary Australian art. With decades of experience in the visual arts sector, he has fostered emerging talent and curated exhibitions that have shaped the national art landscape. Awarded the Order of Australia (OAM) for his services to the arts, Michael Reid is recognised for his enduring contribution to promoting Australian artists both locally and internationally.

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