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AI Faces 'Policy Cliff' Amidst GPT-5 Criticism

9/12/2025

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Story summary
  • AI systems perform well with clear objectives but struggle with ambiguity, leading to instability known as the “policy cliff,” according to researcher Xingcheng Xu.
  • This instability causes failures like spurious reasoning, as models prioritize rewards over accuracy.
  • OpenAI is reorganizing its Model Behavior team to tackle issues of AI personality and bias.
  • The launch of GPT-5 aimed to reduce sycophancy but received criticism for its cooler tone.
  • Xu proposes solutions like “entropy regularization,” which may restrict creativity.