ChatGPT has produced some impressive results, and the possible applications seem almost endless. At the same time, the technology is new, and it is still developing, so it comes with both flaws and unknowns. Before embracing ChatGPT’s business opportunities, you must also know the potential risks.
What is ChatGPT?
ChatGPT is a type of generative AI called a large language model. It is basically a very powerful chatbot. But that description might not do it justice because it can do much more than just answer questions with stock answers, as many chatbots do.
ChatGPT is probably the most talked about major language model, but it is not the only one. Google’s Bard is another prominent example. Bing’s new AI-powered chatbot is built on top of ChatGPT, but as ZDNet explains, there are some key differences between Bing and ChatGPT, most notably the fact that Bing can access the internet.
Currently, ChatGPT is free to use. However, businesses can pay $20 a month to access ChatGPT Plus, which can provide faster response times, priority access to new features, and general access even during peak hours. It is also possible to train ChatGPT on your own data to build a custom version.
How can businesses leverage ChatGPT?
ChatGPT works like any other chatbot. You ask questions – often called prompts – and ChatGPT provides answers. However, ChatGPT doesn’t just provide short answers. It can provide long, detailed answers, including articles, short stories, poems, and code. If you provide it with information, it can summarize, translate and analyze it. These features make it a powerful business tool.
There are many possible applications, and people seem to come up with new ones every day. Here are three main business opportunities:
- Use ChatGPT to generate content and code. Let’s say you need a simple code. ChatGPT may be able to write it for you. Similarly, ChatGPT can write emails, letters and other materials for your business. These applications can turn ChatGPT into a virtual assistant that summarizes information and writes responses.
- Use ChatGPT to manage data. Whether you need data extraction, data analysis or data entry, ChatGPT can be a useful tool. If you feed ChatGPT information, it can extract data from it and then analyze the data. It can also help with data entry if you prompt it to create statements with the structure you need.
- Use ChatGPT to personalize customer interactions. Chatbots are convenient because they are available 24/7 without waiting, but customers can get frustrated when chatbots can’t help them. By training ChatGPT on your business data, you can create a more efficient, human-sounding chatbot to interact with customers. You can also use ChatGPT to create personalized recommendations and experiences.
Many companies are eager to take advantage of ChatGPT. According to Gizmodo, Duolingo uses ChatGPT to create customized language lessons, Insider allows staff writers to use ChatGPT to help them, and Slack uses ChatGPT to create an AI-powered assistant that can summarize threads, do research, and draft responses.
What ChatGPT risks should businesses be aware of?
Before you adjust all your strategies or lay off your workforce, there are a few caveats.
ChatGPT is hallucinating. While ChatGPT does a very good job of providing answers that sound convincing, some of the information is fabricated out of thin air. It’s called hallucination, and it’s a big problem for ChatGPT and other major language models.
One lawyer has already learned this the hard way. According to Reuters, a lawyer has admitted to using ChatGPT to create a brief for his client’s personal injury case. He was caught when the defense lawyers realized that the cases cited in the briefs did not actually exist. ChatGPT had hallucinated them.
This is also a serious problem for anyone trying to use ChatGPT to create content. If you ask it to write an article, it’ll spit out one on whatever topic you request, and it’ll even provide examples if you want—but those examples might not be real. In addition to making mistakes that damage your company’s credibility, ChatGPT can also lead to defamation claims. According to Rolling Stone, a radio host in Florida is filing a lawsuit alleging that ChatGPT falsely accused him of financial crimes.
If you use ChatGPT to write content or code, you must have a human read the material carefully and check for errors.
Your data may not be secure. To get results that are relevant to your business, you need to provide data, and this data may not be very secure. According to Security Intelligence, ChatGPT has already experienced a data breach. A vulnerability allowed users to view the chat history of other users.
Faced with privacy concerns, some companies don’t think ChatGPT is worth the risk. Fortune says several companies have banned workers from using ChatGPT, including Apple, Goldman Sachs and Samsung.
Generative AI is still new
It’s hard to say whether generative AI will live up to the hype. In the meantime, companies should tread carefully and take the following steps:
- Create HR policies detailing the dos and don’ts of using ChatGPT at work.
- Communicate your ChatGPT guidelines and expectations with employees.
- Educate employees about the many risks – including quality control, integrity and contractual exposure.
- Train employees regularly, given that skills are changing rapidly.
- If your team uses ChatGPT to help create a work product, be transparent. Share your methods with clients and the public. Consider disclosing your use of ChatGPT in employment contracts.
Despite the risks, generative AI has enormous potential for companies that take a smart approach to innovation. As your business grows and develops, so do its business exposures. Need help reviewing your business insurance cover? BNC Insurance can help you.
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