Understanding ChatGPT Limitations

Written by Coursera Staff • Updated on

Discover ChatGPT's capabilities while exploring its limitations and challenges in AI technology. Learn best practices for using ChatGPT in business, education, and personal use.

[Featured Image] A person looks at a laptop screen seriously while experiencing ChatGPT limitations with outdated information and biases.

Key takeaways

ChatGPT offers many benefits for work, research, and other activities, but it also comes with some limitations to be aware of.

  • ChatGPT is extremely popular, with the latest research reporting that it has 700 million weekly users [1].

  • Some of ChatGPT's limitations include inaccuracies in information, bias, limited reasoning abilities, and difficulty processing large amounts of information.

Explore the limitations of ChatGPT in more depth while discovering practical tips to navigate them and ways to use the AI tool effectively. If you're ready to learn more about artificial intelligence, enroll in the AI for Business Specialization, delivered by the University of Pennsylvania. You’ll have the opportunity to learn the fundamentals of AI and how to incorporate them into your business strategy, as well as understand its ethical considerations. On completion of the course, you’ll earn a career certificate from the University of Pennsylvania.

What can ChatGPT do?

ChatGPT, a generative pre-trained transformer created by OpenAI, uses large language model (LLM) technology to learn and understand language and grammar, and to respond to prompts in a natural, human-like way. ChatGPT is extremely popular, with the latest research reporting that it has 700 million weekly active users [1]. It has a number of functions and strengths, including answering queries, translating material, writing presentations, conducting research, and developing code. You can use the general ChatGPT model to help you with a range of tasks in a number of industries. OpenAI now also offers ChatGPT Edu and ChatGPT Enterprise, along with other models, each with features tailored to specific industries.

Is there a free unlimited ChatGPT?

ChatGPT has a free tier, but it is not unlimited. With this option, you’ll find a limit to the number of times you can use ChatGPT within a five-hour period [2]. When you've reached the limit of prompts, you’ll have the option to upgrade to ChatGPT Plus, which allows you higher usage and additional features for $20 per month [3].

What are ChatGPT's limitations?

Some of ChatGPT's limitations include information accuracy, its ability to interpret ambiguous information, its application of bias, and its lack of human qualities, such as reasoning and empathy. Because of its limitations, you cannot fully rely on ChatGPT for all tasks. OpenAI acknowledges that ChatGPT has limitations and cautions users to use their own critical reasoning when evaluating its responses [4]. Consider these limitations outlined in more detail:

Inaccurate or outdated information

ChatGPT can search the internet for answers to your queries based on the prompts you give it. However, in doing so, it’s likely to include some outdated or inaccurate information, or information from unreliable sources. It also has limited access to some information due to paywalls or technical issues. As a result, ChatGPT can produce false or out-of-date information. 

ChatGPT responses may appear confident, but this does not necessarily mean that they are accurate. Therefore, it is important to do your own fact-checking. 

Lack of reasoning and deep understanding

ChatGPT uses advanced technology, but it lacks the human qualities that make it fully possible to apply reasoning and form a deep understanding. ChatGPT lacks the contextual understanding that humans use to make decisions and evaluate text and responses, often resulting in inaccurate information. Instead, this technology relies on patterns and inconsistencies, rather than causal reasoning and an awareness of underlying concepts. 

Sensitivity to prompt phrasing

ChatGPT develops responses to the prompts you give it, so your phrasing of prompts is a key factor in the effectiveness of the information it provides. Often, rephrasing a prompt produces a different outcome. For example, if you ask if a bear makes a good pet based on its size, and then ask it to answer the same question about a dog, without outlining the question again, ChatGPT might answer solely about the size of a dog, rather than about its suitability as a pet. Multiple questions can cause confusion.

Challenges with handling ambiguous or contradictory inputs

ChatGPT struggles with ambiguity and contradiction, causing confusion. Rather than ask clarifying questions right away, like a human might, it will give you the most likely answer, then ask for clarification after answering. It also does not understand irony or sarcasm and may give you a serious answer to a sarcastic prompt.

Biases

Bias is a ChatGPT limitation that raises many ethical issues. As ChatGPT searches the internet for responses based on your prompts, the information it draws on may contain human bias in the language it uses and the sources it references. ChatGPT does not have the capacity to reason whether information is prejudiced or biased; rather, it reports what it considers to be fact.

No common sense or emotion

Unlike humans, ChatGPT lacks common sense and does not express real emotion. Answers to questions and responses to prompts are, therefore, often formal in a list format. While it can copy empathy and understanding, this is not real. 

AI conversational challenges and ethical considerations

Some of ChatGPT's limitations can lead to many of the ethical issues and challenges that come with its use. These include:

  • Biases and fairness issues: Due to ChatGPT’s limitations in addressing bias stemming from how it sources information, false data may occur when sampling or creating content about certain demographics.

  • Overconfidence in responses: ChatGPT sounds confident, even when wrong. At times, incorrect information can sound convincing due to ChatGPT’s intelligent-sounding responses and use of clever language.

  • Data privacy and security concerns: ChatGPT raises some security concerns as it can retain private and sensitive information. This might include information like your phone number and email address, as they may be used to log in to and use ChatGPT. It may also retain other information from past prompts about you, in some cases. 

  • Risks of misuse or over-reliance: A big concern is the tendency for people to assume that ChatGPT responses are correct and not fact-check them. As ChatGPT is so convenient and quick to use, people might believe everything it says and become frequent users, becoming reliant on its help.

Practical tips for navigating ChatGPT limitations

Given the limitations of ChatGPT, it’s important that you have a strategy and practical steps in place to counteract them. OpenAI continues to develop ChatGPT, releasing updated versions that address weaknesses and apply technological advances. Follow these tips for navigating limitations:

  • Fact-check outputs because ChatGPT is not always accurate.

  • Break complicated tasks into several smaller prompts, a process known as chunking, because ChatGPT can become confused by too much information.

  • Experiment with how you ask ChatGPT to do something by asking it several times in different ways to ensure clarity.

  • Combine ChatGPT with human expertise by using it as a tool to enhance human systems, rather than to replace them. 

Read more: AI in Education: Approaches and Strategies for Educators

Who is ChatGPT's biggest competitor?

According to the LLM Leaderboards published by Artificial Analysis and Vellum, ChatGPT’s biggest competitors are Anthropic’s Claude and Google’s Gemini, particularly Claude Opus 4.5 and Gemini 3 Pro Preview [5,6]. 

Getting started with effective ChatGPT use

Professionals are integrating ChatGPT into workflows to increase productivity and output. With this in mind, it is a useful tool to learn, as it becomes a part of business strategy in multiple industries. Companies and organizations are increasing their prompt engineering skills to use ChatGPT for customer service, coding, content creation, and to create and facilitate education and training. 

You’ll find a range of options for learning about prompt engineering, which is how to write questions and instructions for ChatGPT and similar models for maximum output. Check out Prompt Engineering for ChatGPT, delivered by Vanderbilt University, for a general overview of how well-written prompts can improve your workflows, or something more specific to your industry, such as ChatGPT Foundations for Teachers, by OpenAI.

Explore our free resources for ChatGPT and generative AI

Check out our Career Chat newsletter on LinkedIn to get timely updates on popular skills, tools, and certifications. Then, discover more about generative AI and improve your use of ChatGPT in your workflows with some of our free resources:

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Article sources

1

OpenAI. “How People Are Using ChatGPT, https://openai.com/index/how-people-are-using-chatgpt/.” Accessed January 24, 2026.

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