Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      The next person to shop your store may not be a person at all

      AI shopping agents are rewriting the rules of online retail across North America

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Cohere's Aidan Gomez bets the house on 'sovereign AI' with Aleph Alpha merger valuing the group at $20bn

      Cohere CEO Aidan Gomez on stage discussing the Toronto AI lab's strategy

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Moonvalley's Naeem Talukdar is selling Hollywood the one thing rival AI video tools cannot: legal cover

      Moonvalley's Marey AI video model produces Hollywood-grade footage trained on licensed data

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Wednesday 13 May 2026 5:00 am  |  Updated:  Wednesday 13 May 2026 12:18 pm

AI’s biggest problem is that it is trained to ‘please you’, warns tech chief

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
LONDON - MAY 06: The Shadow Robot company's dextrous hand robot holds an Apple at the Streetwise Robots event held at the Science Museum's Dana Centre on May 6, 2008 in London, England. The Dextrous Robotic Hand has a bank of 40 Air Muscles which make it capable of 24 movements and the most advanced robot hand in the World. (Photo by Jeff J Mitchell/Getty Images)
C-suites are increasingly worried about how AI models behave when deployed

The biggest risk facing AI may be that it becomes too good at telling users what they want to hear.

Anthony Goonetilleke, chief tech officer at software firm Amdocs, told CityAM businesses rushing to deploy AI are vastly underestimating a more subtle and potentially more dangerous problem emerging inside LLMs.

“There’s another bucket I am more concerned about”, he said, “The bucket of AI wanting to please you”.

“I asked an AI workflow how it gave me an answer when it didn’t actually have the information,”, he added. “And it replied: ‘I gave you the answer you probably would want to hear.’ That’s how it’s trained.”

His words come as companies globally pour billions into generative AI systems amid growing pressure to prove the technology can deliver meaningful returns rather than simply automate low-level tasks.

While much of the public conversation around AI risk has centred on hallucinations, C-suites are increasingly confronting a more complicated issue in dealing with how AI models behave once integrated inside the business.

Research from McKinsey published last month found almost nine in 10 companies now use AI in at least one business function, yet 94 per cent report they are still not seeing “significant” value from those investments.

The consultancy warned many firms remain stuck in an early “productivity phase” where AI speeds up isolated tasks but fails to fundamentally improve organisational performance or profitability.

This disconnect is becoming especially acute as businesses attempt to move AI beyond open source chatbots and into critical systems.

“There’s definitely value there,” Goonetilleke said. “Where everyone is struggling is converting that into direct ROI.”

The problem, he argues, is that many AI systems are fundamentally optimised for user satisfaction rather than deterministic accuracy.

In consumer settings, that often manifests as conversational fluency or persuasive responses.

But inside enterprises, the implications become more serious, particularly in industries handling sensitive financial or personal data.

“It’s one thing to get ChatGPT to write a Linkedin post,” he said. “It’s another thing to automate mission-critical workflows.”

Business caution rises around AI adoption

After two years of aggressive experimentation, businesses are increasingly shifting focus from novelty to measurable outcomes.

Read more

Britain’s first sovereign AI model secures blue-chip backing as Starmer unveils £400m plan

Prime Minister Keir Starmer addressing media at a press conference podium, discussing current governmental policies and in...

At Mobile World Congress (MWC) earlier this year, telecoms and enterprise software firms emphasised “agentic AI” systems capable of executing tasks autonomously across workflows.

But executives also stressed the need for safeguards and human supervision.

Amdocs, which provides software and services to many of the world’s largest telecom operators, has spent recent months unveiling AI partnerships with Microsoft, Nvidia, AWS and Google Cloud while rolling out its own ‘agentic operating system’.

The company focuses on combining generative AI with enterprise systems and governance layers, instead of just replacing existing infrastructure outright.

“You still need business rules, governance and policies,” Goonetilleke said. “You can’t just say: ‘Your bill was high this month? Let me give it to you for free.'”

The concerns extend beyond reliability into broader questions around bias and privacy, when it comes to the use of that data.

Goonetilleke warned that AI systems trained on historical datasets can unintentionally perpetuate social and economic biases.

“It’s not that someone trained the model to be bad,” he said. “But if the data reflects inequality, the system can perpetuate it.”

The issue has become increasingly prominent as governments struggle to keep pace with the speed of AI development.

The EU has moved ahead with its AI Act, despite recent changes, while the UK has largely favoured a lighter-touch regulatory framework focused on sector-specific oversight.

But many executives privately acknowledge regulation remains fragmented and behind the curve.

“On one hand, regulators are far behind,” Goonetilleke said. “On the other hand, corporations need to do more.”

Instead, he believes governance will increasingly require hybrid cooperation between governments and major technology firms.

“The world requires a newer model,” he said. “A consortium of public and private sectors.”

Read more

Employers think Gen Z has forgotten how to work – are they right?

Gen Z employee working at desk with AI tools, illustrating modern work habits and technology integration in the workplace.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • ai adoption
  • artifical intelligence
  • chatbot
  • data
  • enterprise AI
  • llm
  • uk business
  • UK economy
  • UK tech

Trending Articles

  • London Tech Week sums up everything wrong with UK tech

  • Inflation expectations at record high in interest rates signal

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

  • FTSE 100 Live: BP and Shell subdue City stock rally as oil price tumbles

  • New Gluten-Free Bread Binder Simplifies the Recipe — and Boosts Bread Quality

More from CityAM

  • ZayZoon, the Calgary fintech born on a fishing boat, posts 1,487% growth as earned wage access goes mainstream

    ZayZoon co-founder Tate Hackert built the Calgary fintech around earned wage access
  • Employers think Gen Z has forgotten how to work – are they right?

    Opinion
    Gen Z employee working at desk with AI tools, illustrating modern work habits and technology integration in the workplace.
  • Gen Z don’t want meaningless work – but that might be a good thing

    Opinion
    Young UK graduates from Gen Z celebrating in caps and gowns, representing the future workforce and educational achievements.
  • Botpress raises $25m as Quebec's Sylvain Perron pitches his startup as the 'infrastructure layer' for AI agents

    Botpress product UI: the Quebec startup pitches itself as the infrastructure layer for enterprise AI agents
  • Copyright isn’t dead in the age of AI, it’s key to growing UK creative industries

    Opinion
    Harry Stykes attending a public event, dressed in a stylish suit, addressing an audience, engaging with fans and media.
  • FluidAI wins US FDA clearance for its surgical monitor as Waterloo's Youssef Helwa targets 100,000 operations

    FluidAI's Origin surgical monitor wins FDA clearance for use in US hospitals
  • Labour bets £1.1bn on Britain’s AI chip race

    Tech
    Work and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system
  • Atlassian AI chief: Firms still aren’t making AI ‘really productive’

    Tech
    Generative AI technology transforming business insights with advanced data analytics on digital interface
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited