Which of the following best characterizes limited memory AI?

Limited memory AI is defined by its ability to learn from both past and present data to improve its performance over time. This characteristic enables such AI systems to adapt and refine their algorithms based on new information or experiences, allowing them to make better decisions in future situations. For example, self-driving cars can gather data from previous trips to enhance their navigation systems, making them safer and more efficient as they gather more information.

The other choices fall short of accurately describing limited memory AI. The option that suggests it never learns from experiences misrepresents the fundamental capability of limited memory systems, as they are specifically designed to learn and adapt. The idea that it can only operate in controlled environments limits the scope of its application, as limited memory AI can function in varied scenarios while still benefiting from learning. Finally, stating that it replicates human intelligence exactly ignores the fact that limited memory AI operates on a different basis than human cognition, utilizing data-driven learning rather than mimicking human thought processes directly. Thus, the emphasis on the learning and improvement aspect is what makes the correct answer so fitting for describing limited memory AI.