What can be said about ChatGPT that hasn’t already been said?
By building on the blocks of the existing large language model, the chatbot has triggered a public discourse on the role AI will play as it becomes an embedded reality of modern society. Prominent tech leaders have raised concerns over the lack of state regulation and public understanding of how ChatGPT works. Some have even gone so far as to call for a temporary halt to AI development.
ChatGPT and AI will continue to be trending topics in the media for some time still. However, it is also important to understand the practical applications of language model technology within an enterprise. While it may not conjure the same feelings of excitement and disruption, the use of ChatGPT to undertake a host of corporate activities is around the corner.
This is particularly true when we consider fintech. The sector has by its very nature taken cutting-edge technology and applied it to an industry once renowned for its lack of innovation and reluctance to embrace change. Given the size and breadth of services provided and its 10-year growth trajectory, fintech firms are already exploring how ChatGPT could be deployed.
As with the integration of any technology, there are implications or challenges, alongside attractive value gains. So as an exercise, we asked ChatGPT what the advantages and disadvantages of fintech companies leveraging its technology were.
When asked what the benefits were, ChatGPT signalled several areas for prime integration.
Enhance customer services
It can enhance customer services by providing instant and personalized responses to customer inquiries, helping fintech companies offer superior customer service. It can handle a wide range of customer queries, such as account balance inquiries, transaction history, payment status, and general information about financial products and services.
Automate customer interactions
Fintech companies can automate customer interactions, reducing the need for human customer support agents. This can result in cost savings, as it can handle many inquiries simultaneously, without incurring additional labour costs. Firms should tread carefully around this as many banks have experienced media and customer backlash for branch closures in recent months. If FinTech organisations are to adopt ChatGPT in customer service roles, the way in which that shift is communicated will be critical for maintaining customer trust.
ChatGPT can provide 24/7 customer support, which can be highly advantageous for fintech companies that cater to customers in different time zones. This ensures that customers can access support whenever they need it, enhancing their experience and satisfaction.
ChatGPT can be easily scaled to handle a large volume of customer inquiries without any additional physical infrastructure. This makes it ideal for fintech companies that experience high levels of customer interactions or those that anticipate rapid growth.
Enhance operational efficiency
The system can also quickly process and analyse vast amounts of data, helping fintech companies automate tasks such as fraud detection, risk assessment, and data analysis. This can enhance operational efficiency and reduce human errors.
Overall, by adopting ChatGPT, the AI system acknowledges that fintech companies can demonstrate their commitment to leveraging cutting-edge technologies, enhancing their brand image as innovative and customer-centric.
After making the case as to why fintech companies should be using ChatGPT, we asked what the disadvantages were to see if it could self-acknowledge the challenges it might generate. Interestingly, it produced a balanced response.
Lacks human touch and empathy
It acknowledged that its current functionality lacks the human touch and empathy that can be crucial in certain financial interactions. It may not fully understand complex emotions, nuances, or cultural differences, which could result in less personalised and less satisfactory customer experiences.
Limited accuracy and reliability
Although ChatGPT recognises itself as a powerful language model, it may not always provide accurate or reliable responses. It relies on large datasets and machine learning algorithms, which can sometimes produce errors or biased results. In the context of financial services, inaccurate information or advice from ChatGPT could potentially lead to incorrect financial decisions or actions, which may have negative consequences for customers.
Data privacy and security
Fintech companies typically deal with sensitive financial data, and by using ChatGPT, there are valid concerns surrounding data privacy and security. It acknowledges there is a risk of data breaches, unauthorized access, or misuse of customer information. It advises that fintech companies need to ensure robust data encryption, storage, and transmission protocols to protect customer data when using ChatGPT or any other AI technology.
The use of AI, including ChatGPT, raises ethical concerns related to fairness, bias, and transparency. If not carefully designed and tested, ChatGPT may inadvertently perpetuate bias, discrimination, or unfair treatment of certain groups of customers, leading to social or ethical issues. Fintech companies need to be vigilant about identifying and addressing biases in their AI systems and ensuring transparency with their customers in how the AI technology operates.
Not a silver-bullet solution
The above exercise rounds out the role of language modelling technology within the fintech sector. Importantly, it required human input in the form of questions to produce the responses. This is core to the issue at hand – AI is the most effective when directed by humans.
AI is not a silver bullet solution. While it can efficiently and effectively take on tasks that are heavily dependent on human resources, it still requires direction and human oversight. By no means is the technology perfect, and if not properly deployed and monitored, it could create a new wave of challenges.
However, there is no reason why fintech companies should not look into its practical application. The reality is that sophisticated AI solutions will become a natural part of enterprise – understanding the latest trends is vital for all companies regardless of sector.