🌁#90: Why AI’s Reasoning Tests Keep Failing Us

Community Article Published March 3, 2025

we discuss benchmark problems, such as benchmark saturation, and explore potential solutions. And as always, we offer a curated list of relevant news and important papers to keep you informed

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  • Wednesday, AI 101, Techniques: Everything you need to know about Knowledge Distillation
  • Friday, Agentic Workflow: Action and Tools

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The race to build ever-smarter AI has led to a paradox: the benchmarks we use to measure progress are breaking down almost as fast as the models improve. Just a few years ago, the BIG-Bench Hard (BBH) dataset was a gold standard for evaluating reasoning in large language models (LLMs). Today, it’s essentially obsolete. The latest AI models – GPT-4o, Gemini, DeepSeek – have aced it, reducing what was once a rigorous test into a mere formality. In response, researchers have introduced BIG-Bench Extra Hard (BBEH), a new benchmark designed to push AI reasoning to its limits. But if history is any guide, BBEH too will be “solved” sooner than we expect. And then what?

This cycle of benchmark saturation is one of the biggest hurdles in AI evaluation. Every time researchers devise a new test, models quickly adapt, often through methods that have little to do with true reasoning. AI labs optimize their models to dominate the leaderboard, fine-tuning responses to fit benchmark formats rather than improving genuine cognitive abilities. This is a classic case of Goodhart’s Law: when a measure becomes a target, it ceases to be a good measure.

Beyond saturation, there’s an even bigger problem: we’re measuring the wrong things. Most reasoning benchmarks heavily favor math and coding tasks because they have clear right and wrong answers. But being able to solve an algebra problem doesn’t mean an AI can navigate real-world ambiguity, make causal inferences, or understand human motivations. A model that can write perfect Python scripts might still fail at answering a nuanced ethical dilemma or interpreting sarcasm in a conversation. Yet, because math and programming are easy to score, they continue to dominate AI evaluations, giving us a skewed sense of progress.

Even when benchmarks try to cover broader reasoning skills, they face a different issue: models exploit superficial shortcuts instead of truly reasoning through problems. AI is great at pattern recognition, often identifying statistical cues in datasets rather than solving tasks in a human-like way. For example, if a benchmark always frames logical deduction problems in a similar format, the model can memorize patterns instead of actually performing reasoning. This illusion of competence is one reason LLMs still stumble when presented with unfamiliar real-world challenges.

The implications of weak evaluation methods extend beyond research labs. AI models are already being integrated into critical applications – healthcare, legal analysis, customer service – where reasoning skills matter. If our benchmarks don’t accurately reflect real-world reasoning demands, we risk deploying models that appear highly capable but fail in unpredictable and costly ways. Worse, businesses and policymakers may overestimate AI’s cognitive abilities based on misleading benchmark scores, leading to misplaced trust in automated decision-making.

So how do we build better benchmarks? The answer lies in diversity, adaptability, and real-world testing. Instead of relying on fixed datasets that quickly become outdated, AI evaluations should incorporate dynamic and adversarial testing, where new, unseen problems continuously challenge models. Benchmarks must also expand beyond math and coding to cover commonsense reasoning, causal inference, and ethical decision-making. Finally, real-world performance needs to be the ultimate metric – how well does an AI assist doctors, guide autonomous systems, or navigate complex social interactions?

BBEH is a step in the right direction, but it’s just the latest chapter in a long story. The challenge is to make benchmarks not only harder, but also smarter. If AI is to truly reason, we need to rethink how we test it. Otherwise, we’ll keep mistaking test-taking ability for intelligence – and that’s a dangerous illusion to fall for.

Curated Collections

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We are reading/watching:

Recommendation from an AI practitioner

  • Imagine having a precision scalpel for dissecting LLMs – open-sourced LLM-Microscope reveals token nonlinearity, memory depth, layer insights, and representation complexity.

News from The Usual Suspects ©

6 DeepSeek’s Extraordinary Deliveries during #OpenSourceWeek

  • DeepSeek delivered six major open-source AI optimizations this week, showcasing efficiency and scalability in LLM development. FlashMLA (already over 11k stars on GitHub!) optimized Multi-head Latent Attention (MLA) for Hopper GPUs, achieving 3000 GB/s memory bandwidth and 580 TFLOPS compute. DeepEP introduced a new MoE communication library to improve expert model efficiency. DeepGEMM, an FP8 GEMM library, hit 1350+ TFLOPS, outperforming expert-tuned kernels. Optimized parallelism strategies enhanced workload distribution in large-scale AI training, while Fire-Flyer File System (3FS) streamlined high-performance AI data management. On the 6th day, they published a deep dive into DeepSeek-V3/R1 Inference System. Worth reading!
  • DeepSeek’s advancements in AI have also brought media attention to distillation. Funny to see it making headlines – guess even optimization tricks are getting their 15 minutes of fame. We will be covering KD on Wednesday!

Anthropic Levels Up: Smarter AI, Bigger Deals, and Total Transparency

  • Anthropic is making big moves. With Claude 3.7 Sonnet, users can now control how deeply it thinks – whether solving complex problems or even playing Pokémon.
  • Meanwhile, the new Transparency Hub lays out safety measures and governance policies as AI regulations tighten. And in science? Anthropic is teaming up with the U.S. Department of Energy to test AI’s role in national security and research.
  • All this momentum, plus a fresh $3.5B Series E at a staggering $61.5B valuation. Dario and Daniela Amodei just appeared in The Times, prophesying that “By next year, AI could be smarter than all humans”.

Google’s AI Playbook: Harder Work, Smarter Code, and an AI Co-Scientist

  • Silicon Valley’s AI arms race is pushing limits – both human and machine. Sergey Brin wants 60-hour workweeks for Google's Gemini AI team, calling it the "sweet spot of productivity."
  • To get more developers onboard, Google is making AI-powered coding assistance free for all with Gemini Code Assist, offering up to 180,000 completions per month – a massive leap over existing tools. Now available in VS Code, JetBrains, and GitHub, it doesn’t just write code but also reviews pull requests and adapts to custom style guides.
  • And in the lab? Google’s AI co-scientist, built on Gemini 2.0, is generating and refining scientific hypotheses – already making breakthroughs in biomedical research by uncovering new drug candidates and gene transfer mechanisms. Maybe it can also figure out how to make humans work without rest, just like AI.

Another day, another quantum achievement

  • Researchers from AWS Center for Quantum Computing developed a hardware-efficient quantum error correction (QEC) scheme using concatenated bosonic qubits. Their system integrates bosonic cat qubits with a distance-5 repetition code, reducing the overhead required for fault-tolerant quantum computing. The approach suppresses bit-flip errors passively while an outer repetition code corrects phase-flip errors.

Models to pay attention to:

The freshest research papers, categorized for your convenience

There were quite a few TOP research papers this week, we will mark them with 🌟 in each section.

  • 🌟 Beyond Release: Access Considerations for Generative AI Systems – Analyzes the practical challenges of open-access AI models, including API pricing, hosting costs, and accessibility barriers

LLM Optimization and Training Stability

Efficiency and Optimization

Reasoning and Multi-Step Problem Solving

RAG and Information Processing

AI Agents and Automated Scientific Experimentation

Reinforcement Learning and Policy Optimization

Security and AI Alignment

Compression, Inference, and Cost Optimization

That’s all for today. Thank you for reading!


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