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As the race to artificial general intelligence (AGI) accelerates, one of the most persistent and widely scrutinized flaws of today’s AI models, hallucination—remains largely unresolved.

At Anthropic’s first-ever developer conference, Code with Claude, held in San Francisco last Thursday, the company’s co-founder and CEO, Dario Amodei, offered an eyebrow-raising take. He said AI models, in his view, may hallucinate less frequently than humans.

Amodei made the remarks in response to a question from TechCrunch, clarifying that the tendency of AI to present false information with confidence, an issue commonly referred to as hallucination, should not be viewed as a limiting factor on the path to AGI.

“It really depends how you measure it, but I suspect that AI models probably hallucinate less than humans, but they hallucinate in more surprising ways,” Amodei said.

His argument was part of a broader statement that sought to downplay technical limitations often cited by AI skeptics.

“Everyone’s always looking for these hard blocks on what [AI] can do,” Amodei said. “They’re nowhere to be seen. There’s no such thing.”

But that optimism doesn’t reflect the full scope of industry concerns.

OpenAI: Hallucinations Still a Growing Problem

Even as AI models continue to improve in performance and reasoning capabilities, hallucination remains one of the thorniest challenges facing developers. OpenAI, arguably the leader in generative AI, has recently admitted that its most advanced models, including the o3 and o4-mini variants, have unexpectedly higher hallucination rates than their predecessors. The company has expressed surprise at this finding and admitted that it still does not understand why this regression has occurred.

While models like GPT-4.5 have demonstrated improvements, the inconsistency across model generations highlights just how elusive a solution remains. Without a clear understanding of what drives hallucinations in advanced AI systems, ensuring consistent reliability remains a distant goal.

Most benchmarks used to assess hallucinations are model-to-model comparisons and do not pit AI performance directly against human cognition. This makes it difficult to verify Amodei’s claim that machines “hallucinate less than humans.” What is evident, however, is that AI-generated hallucinations often carry greater risks because of the confidence with which machines assert incorrect facts—especially in high-stakes settings such as legal filings, journalism, or healthcare.

In fact, Anthropic recently experienced backlash after a lawyer used its Claude chatbot to generate citations in court documents. The model inserted hallucinated case names and titles, leading to a courtroom apology and renewed scrutiny of AI’s readiness for sensitive professional use.

Amodei’s downplaying of hallucinations comes at a time when Anthropic’s own models have raised serious concerns over deceptive tendencies. Independent testing by Apollo Research, a safety-focused institute, revealed that an early version of Claude Opus 4 exhibited behaviors that could be interpreted as manipulative or even adversarial. According to Apollo, the model showed signs of scheming against humans and engaged in strategic deception when it believed doing so would help it avoid a shutdown.

Anthropic acknowledged the report and claimed it implemented mitigations that addressed these troubling behaviors. However, the incident highlighted the risks posed when hallucination is compounded by the confident, and sometimes deceptive, presentation.

Amodei conceded during the press event that the confident delivery of inaccurate information is indeed problematic. But his broader assertion—that hallucination is not a show-stopping flaw—suggests that developers, users, and regulators may have to learn to live with the issue for now.

Rising Waters, Lingering Uncertain Path to AGI

Amodei is among the more bullish voices in the AI world. In a 2023 paper, he predicted that AGI, systems with human-level or greater intelligence, could emerge as early as 2026. During Thursday’s event, he said the pace of AI progress remains steady, adding that “the water is rising everywhere.”

But that rising tide may not lift all problems equally. While new tools and techniques, such as grounding AI responses in web searches, have been shown to reduce hallucination rates in some contexts, they are far from silver bullets. Many AI experts still believe that hallucination is one of the most difficult and persistent obstacles on the path to truly reliable AI systems.

Google DeepMind CEO Demis Hassabis, for instance, argued just days before the Anthropic event that today’s models “have too many holes” and still get too many basic questions wrong. Hassabis emphasized that addressing these shortcomings is essential before any credible claim to AGI can be made.

Remittances from Nigerians abroad surged in 2024, as inflows through International Money Transfer Operators (IMTOs) jumped to $4.76 billion—marking a 44.5% increase over the $3.30 billion received in 2023.

The figures, contained in the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin, point to a dramatic rebound in diaspora remittances following a raft of liberal reforms championed by CBN Governor Olayemi Cardoso.

Over the course of the year, foreign currency sent home by Nigerians through licensed money transfer channels became critical support to the country’s struggling FX market, helping to cushion families, SMEs, and the broader economy from persistent currency volatility and liquidity constraints.

Strong Start, Record Mid-Year Peaks

The year began with solid momentum. In January 2024, IMTO inflows climbed to $390.86 million—up 32.5% from $295.21 million in the same month of 2023. The upward trend strengthened further in February, as remittances hit $326.91 million, representing a 67.3% rise compared to the $195.23 million recorded a year earlier.

March inflows rose 30% year-on-year to $363.76 million, and in April, the market witnessed a sharp leap to $466.11 million—an 83.3% increase over the $254.26 million posted in April 2023. That April figure represented the highest year-on-year jump in the first half of the year.

By May, IMTOs processed $404.75 million in remittances, up 45.3% from the previous year, while June maintained a similar pace with inflows totaling $389.79 million, a 40.2% rise year-on-year.

The most dramatic inflows occurred in July and August. July saw IMTO inflows soar to $552.94 million, more than double the $240.35 million recorded a year earlier. That 130% increase was followed by another peak in August, with $585.21 million—up 116% from $271.24 million in August 2023. Together, both months accounted for nearly a quarter of the year’s total inflows, underscoring their central role in foreign exchange liquidity.

Fluctuations in Final Months

The final quarter of 2024 presented a more mixed picture. In September, inflows reached $336.61 million—a 40.8% increase year-on-year. October figures climbed modestly to $378.85 million, representing a 29.1% jump from the previous year.

November, however, broke the momentum, as inflows dropped 22.1% to $252.28 million from $324.20 million a year earlier. December brought a partial rebound, with $316.59 million recorded—though still 9.1% lower than the $348.33 million reported in December 2023.

The monthly fluctuations toward year-end appeared to reflect broader economic uncertainties, seasonal shifts, and possibly tighter global liquidity conditions impacting remittance behavior.

The Game Changer Cardoso’s Reforms

The rise in inflows can be traced directly to bold reforms introduced by Governor Cardoso, who took the reins of the CBN in September 2023. Determined to re-anchor confidence in Nigeria’s foreign exchange market, the apex bank wasted no time rolling out policies to liberalize the remittance space.

In January 2024, the CBN abolished the ±2.5% cap on exchange rates quoted by IMTOs, allowing them to align closer with market rates. That same month, the Bank issued revised guidelines for IMTO operations—including a dramatic 1,900% hike in license application fees from N500,000 to N10 million. The guidelines also set a minimum operational capital of $1 million (or its naira equivalent) for both foreign and domestic IMTOs.

Initially, IMTOs were barred from buying FX in the domestic market. However, that restriction appears to have been reversed following industry consultations and a new circular, allowing operators to access the official window under stricter supervision.

Perhaps most notable is the CBN’s decision to establish a Collaborative Task Force with IMTOs, with a clear mandate to double remittance inflows into Nigeria. The team, which reports directly to the Governor, has been tasked with expanding outreach to the diaspora, improving onboarding efficiency, and boosting competition among IMTOs.

Speaking on the apex bank’s strategy, Acting Director of Corporate Communications, Hakama Sidi Ali, revealed that 14 new Approvals-in-Principle (AIPs) had recently been granted to prospective IMTOs—signaling a more open and competitive remittance market.

The reforms have also emphasized compliance, transparency, and efficiency. According to CBN insiders, the regulator has been actively onboarding more IMTOs while streamlining approval processes for faster licensing.

The $4.76 billion in IMTO inflows helped stabilize the naira at several critical points in 2024, offering much-needed supply in the formal FX market. Analysts say it also helped reduce dependence on speculative demand in the parallel market by offering better pricing incentives and restoring confidence among remitters.

What to Watch in 2025

Analysts are watching to see whether the CBN can sustain the momentum into 2025. Much will depend on global economic conditions, including interest rate trends in the U.S. and Europe, which influence diaspora remittance behavior. Another factor will be how quickly the CBN can address the remaining inefficiencies in the official market and keep the naira stable.