There are hard limits. No matter how you try you can't perfectly simulate three atoms using two atoms. If it turns out we have to, in software, represent fifty percent of neuronal activity to create consciousness we're in real trouble. A dragonfly can take inputs from thousands of ommatidia and use them to track targets in space using only sixteen neurons. How many transistors would it take us to do the same? Take that ratio and apply it to the 86 billion neurons in the human brain and you have a rough idea of what it will take to create strong AI. The numbers aren't promising.