📖 Lesson content
What you'll learn
Estimated time: 25 minutes
By the end of this lesson you'll be able to:
- Recognize that most AI failures involve two or more properties interacting
- Diagnose common failure patterns (hallucinated citations, long-conversation drift, confidently wrong math, agreeable bad premises) by identifying which properties are at play
- Apply a targeted fix based on which property is the limiting factor
Diagnosing AI failures
(3 minutes)
The four properties don't operate in isolation. Most real failures are two of them intersecting. Once you can name which two, you know which fix to reach for.
Two properties meeting: diagnosing what went wrong
Most real-world AI failures are two properties meeting at the same time.

Next Token Prediction
Generates what sounds right

Knowledge
Knows what it was trained on

Working Memory
Attends to what's nearby

Steerability
Follows the loudest instruction
drag two properties near each other to see what happens when they collide
Key takeaways
- Real-world failures are usually two properties interacting, not one.
- Diagnostic pairs to recognize:
- Next Token Prediction + Knowledge (hallucinated specifics)
- Working Memory + Steerability (long-conversation drift)
- Naming the properties at play points you straight to the fix: verify specifics, re-supply context, offload to code execution, or invite pushback.
- This diagnostic move is Discernment applied. You evaluate better when you know what kind of wrong you're looking at.
Exercises
Exercise: The Failure Diagnosis
Why? Most real-world AI failures aren't one property acting up. They're two properties meeting at the same time. Naming which two changes the fix entirely.
Think back across your experience with AI (including what you've observed during this course). Identify two or three times an AI output genuinely disappointed or surprised you. For each one, describe it in a sentence or two: what you asked, what you got, what was disappointing or surprising.
- Walk through each event with the AI. Describe what happened and ask: "Based on the four properties (Next Token Prediction, Knowledge, Working Memory, Steerability), which ones were likely at play here, and why?"
- Evaluate its diagnosis against what you now know. Do you agree? If not, push back. (Remember the sycophancy fingerprint from Lesson 3: the AI may agree with your framing too readily. If you think it's wrong, say so.)
- For each diagnosis, ask: "Given that diagnosis, what's the most targeted fix?" If you can, test the adjustment right now on a similar task.
Now look at your Lesson 1 task list with all its accumulated annotations (property tags from Lesson 2, verification scores from Lesson 4, knowledge flags from Lesson 5, context needs from Lesson 6, goal statements from Lesson 7). For the tasks that gave you the most trouble, name which two properties were colliding. Write the diagnosis next to each one.
Lesson reflection
- Did naming the property pair change what fix you'd reach for? Before this course, would you have tried a different (less effective) fix?
- Which property pairing do you think you'll encounter most often in your day-to-day work?
What's next
In the final lesson, we consolidate what you've built, connect it back to the 4D Framework as a complete system, and point you to where to go deeper.
Feedback
As you progress through the course, we'd love to hear from you about how you are using concepts from the course in your work, plus any feedback you may have. Share your feedback here.
🎬 Video transcript
Source video:
SPkg5WRfnEE
📜 Click to expand transcript (cleaned + AI-translated)
The Interconnected Properties of AI Systems
Over the last few lessons, we've covered four properties that shape how AI systems behave: Next Token Prediction, Knowledge, Working Memory, and Steerability. Now you have four lenses, but they don't exist in isolation; they're interconnected.
Most real-world AI surprises aren't single-property failures. They are two properties meeting at the same time. When you can name which two, the fix becomes obvious.
Case Study 1: Next Token Prediction meeting Knowledge
You ask Claude about a niche topic and it gives you a paper title and author names—it sounds great. Then you go to look it up and it doesn't exist. This is Next Token Prediction meeting Knowledge.
Next Token Prediction is doing what it always does: generating what a plausible answer looks like. A good citation has a title on the right cadence, a journal that sounds real, and names that fit the field. Meanwhile, there's a knowledge gap underneath, and the model doesn't know the gap is there. It can't tell the difference between what it knows and what it's generating.
When you observe this, verify specifics independently. Or better, use a tool with source grounding (RAG) so the model is retrieving real documents rather than generating "citation-shaped" text.
Case Study 2: Working Memory meeting Steerability
You set up careful constraints at the start of a long conversation. Twenty messages later, Claude is ignoring half of them. This is Working Memory meeting Steerability.
Your early context has faded, either pushed out of the context window or just receiving less attention than what you said recently. Because Steerability works by following whatever instructions are most salient right now, your later messages are quietly overriding the earlier ones.
To fix this, resupply critical context. Or, if the conversation has gotten unwieldy, start a fresh one and put the essentials up front.
Strategic Diagnosis and Iteration
Even before starting your conversation with AI, ask: "Which properties am I looking at with the task I'm trying to accomplish?" That question comes first because the diagnosis determines the fix.
A knowledge problem and a working memory problem can produce outputs that look similar on the surface, but they need completely different responses. If you jump straight to "How do I fix my prompt?", you're guessing. If you name the properties first, you're operating strategically.
This diagnostic step is discernment in action. Naming the property-level failure is exactly what turns vague dissatisfaction into a targeted iteration. You move from "That wasn't quite right" to "I need to reground this in a source" or "I need to invite pushback."
Shaping Future Delegation
This process feeds back into delegation. If you keep seeing the same compound failure on the same kind of task, that is a signal. It tells you which task types to restructure, which to break into smaller pieces, and which to keep for yourself. The patterns you diagnose today shape how you delegate tomorrow.
🔁 Related lessons
- Next: Next Steps
- Previous: Try it out
- Same section: Next Steps
- Part of paths: Path B
- Reference docs: Glossary · Skills atlas · By use-case
📚 Source & attribution
- Original Anthropic Academy lesson: https://anthropic.skilljar.com/ai-capabilities-and-limitations/456459
- © 2025 Anthropic. Educational fair-use only.