Artificial Intelligence and the Limits of Reason: A Framework for Responsible Use in Public and Private Sectors

Artificial Intelligence (AI) is increasingly positioned as a transformative force across public and private sectors. Yet, its adoption raises critical questions about reasoning, accountability, and the limits of machine cognition. This study draws on the philosophy of science as well as well as theories of organizations to argue that current AI systems—despite their predictive and generative capabilities—lack essential human faculties such as ability to engage in abductive reasoning, grasp analogies and metaphors, interpret sparse or nuanced data. These limitations have profound implications for decision-making, particularly in democratic societies where legal and ethical accountability are paramount. We propose a pragmatic framework for the responsible use of AI, distinguishing between ‘reliable’ and ‘frontier’ technologies, and aligning their deployment with sector-specific obligations. By situating AI within broader epistemic and institutional contexts, the framework offers actionable guidance for aligning technological innovation with democratic values and ethical governance.