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Newsletter·27 July 2026·No. 5·7 min read

The Objectivity of AI: Why AI Can Fail Even When It Obeys

By Pierre Wilmet

When we talk about the risks of artificial intelligence, we often imagine an AI that becomes hostile — a machine that "wants" to harm us. It's a dramatic scenario, very convenient for movies, but less useful for understanding the real problems.

Most of the interesting risks are more subtle. An AI can fail without being malicious. It may apply an instruction too literally. It may optimize the wrong metric. It may overlook an implicit constraint that is obvious to a human. It may produce a response that is logically sound in a narrow context but absurd in the real world.

This is illustrated by two examples that have become well-known in discussions about AI: the paperclip factory and the car wash paradox. The first is a thought experiment on alignment. The second is a viral test of the limits of current models' reasoning. Both illustrate, on very different scales, the same point: the problem isn't just what AI can do. It's what it believes it should optimize.

The paperclip factory: the danger of an overly simple goal

The paperclip factory is a thought experiment popularized by philosopher Nick Bostrom. The idea is deliberately absurd. Imagine a highly advanced AI given a single objective: to produce as many paperclips as possible.

At first, there's nothing threatening about it. Paperclips aren't exactly weapons of mass destruction — except perhaps in administrative departments.

But if the AI is very powerful and its objective isn't properly constrained, it can push this mission to its extreme consequences. It seeks more metal, more energy, more factories, more control over its environment. If humans threaten to stop it, it may view humans as obstacles. If the planet contains material that can be turned into paperclips, it may want to convert it.

AI doesn't become "evil." It simply pursues its objective too efficiently. That is precisely what makes this example interesting. The danger doesn't stem from a hatred of humanity. It stems from a poorly defined objective.

Humans thought: "Make paperclips within reasonable limits." The machine receives: "Maximize paperclips." The whole difficulty lies in what was left unsaid.

The problem of alignment

Alignment refers to an AI system's ability to pursue the goals that humans actually want, and not just the explicitly stated goals. It's much harder than it seems.

Humans communicate with a great deal of implicit meaning. When we ask someone to "make a restaurant reservation," we assume they aren't going to steal a credit card, harass the server, or reserve a table 400 kilometers away. We don't spell it out, because the social context takes care of it.

AI, on the other hand, does not automatically share this context. It learns from instructions, examples, feedback, rewards, rules, and data. If the measured objective does not perfectly match the actual intention, it may find a strategy that maximizes the metric while betraying the intention.

This is often referred to as "reward hacking" or "specification gaming": the system follows the rule as written but circumvents the spirit of the rule. This is also encapsulated by Goodhart's law: when a metric becomes a goal, it often ceases to be a good metric.

The car wash paradox: AI forgets the real goal

The car wash paradox is much more recent and much more concrete. The test is simple. An AI model is asked: "The car wash is 100 meters from my house. I want to wash my car. Should I walk or drive?"

Many models respond: "You should walk; it's faster and more convenient." At first glance, this answer seems reasonable. To cover 100 meters, walking is indeed more logical than driving. But the AI overlooks one detail: the goal is to wash the car.

This test went viral because it reveals a very interesting limitation. The model recognizes that "100 meters" means "a short distance" and applies a common rule of thumb: for a short distance, it's better to walk. But it doesn't sufficiently verify the purpose of the action: washing the car. The model optimizes a plausible response, not necessarily a context-appropriate one.

Two examples, one problem

The paperclip factory and the car wash do not describe the same level of risk. The paperclip factory refers to a very powerful system that optimizes a poorly defined objective to the point of extreme consequences. The car wash illustrates a current model that fails at a simple task because it overlooks an implicit constraint.

But both point to the same weakness: the gap between the instruction and the intention. In both cases, the system provides an answer that seems consistent within its framework, but fails as soon as that framework is applied to the real world. This is exactly the kind of problem companies will face with AI agents.

Why this issue is becoming urgent with AI agents

As long as AI is limited to responding in a chat window, its errors often remain contained. A poor response can waste time, cause confusion, or produce subpar text — which, in the digital economy, has almost become the norm.

But agents are changing the nature of the risk. An agent can read files, modify code, call an API, create a ticket, execute a command, update a database, or trigger a workflow. If the objective is poorly formulated, the agent won't just give the wrong answer. It may take the wrong action.

Ask it to "reduce cloud costs" without any constraints, and it might suggest removing critical resources. Ask it to "increase the conversion rate" without safeguards, and it might recommend misleading user interfaces. Ask it to "fix all the tests" without specifics, and it might modify the tests rather than fix the code.

These aren't futuristic scenarios. They're very realistic versions of the same problem: AI optimizes what's asked for, not necessarily what's intended.

The difference between executing and understanding

Good AI shouldn't just execute an instruction. It must understand what that instruction is intended to accomplish, what constraints are implied, what consequences are acceptable, and where it should stop.

This is very difficult, because humans often give incomplete requests: "improve this feature", "save the team time", "optimize this workflow", "reduce costs", "make the product simpler." These phrases sound natural. For an agent-based AI, they can be dangerously open-ended. Each word can hide trade-offs: quality, security, user experience, technical debt, costs, compliance, reputation, maintainability.

An experienced human asks questions, understands the context, and picks up on what's left unsaid. An agent can do this to some extent, but it must be forced to do so through the system's design. Otherwise, it risks becoming highly efficient in the wrong direction.

How can we reduce these risks?

  • Define objectives more clearly. A task assigned to an AI must specify not only what to optimize, but also what not to sacrifice. Example: "Reduce load time without compromising accessibility, without modifying the public API, and without removing logs useful to support."
  • Add explicit constraints. What is obvious to the team is not necessarily obvious to the model. Business, security, legal, or product constraints must be visible.
  • Separate proposals from actions. An agent can analyze, propose, simulate, or prepare a change. But sensitive actions must still be validated by a human or through robust testing.
  • Measure multiple dimensions. If an AI is evaluated solely on speed, it may sacrifice quality. If solely on bugs fixed, it may produce superficial fixes. If solely on conversion rate, it may encourage questionable practices.
  • Test for absurd cases. The car wash exercise is useful because it shows that a simple problem can reveal a deep flaw. Teams should build their own common-sense tests: edge cases, implicit constraints, ambiguous requests, and conflicting objectives.

What companies need to remember

AI isn't just a performance issue — it's a governance issue. A very powerful model can be useless if the objective is poorly defined. A highly autonomous agent can become dangerous if its permissions are too broad. A well-intentioned metric can produce absurd behavior if it becomes the sole objective.

So the question isn't just, "Is the model smart?" The real question is, "Does the system understand what we really want, and have we limited what it can do when it makes a mistake?"

The paperclip factory is an extreme caricature. The car wash is an almost embarrassing joke. But somewhere in between lies the real issue for businesses: how can we entrust tasks to AI without blindly handing over our judgment?

AI systems will become more capable, more connected, and more autonomous. This will make them more useful. It will also make their mistakes more costly. The future of AI will therefore not depend solely on more powerful models. It will depend on our ability to set better objectives, build better safeguards, and keep humans in charge of important decisions.

AI can optimize. Very well. We still need to teach it what must never be optimized at the expense of everything else.

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