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CHATGPT – A TECHNOLOGICAL ADVANCEMENT IN HUMAN LIVES

(Understanding ChatGPT and Impacts)

On November19, 2019, Tech Giant Microsoft announced to invest an undisclosed value in Open AI, a San Francisco based company, cofounded by Elon Musk, involved in developing Chat Bots based on AI platforms. No one took it seriously. On November22, 2022, when Microsoft announced that they ended up investing whopping 10Billion dollars in a single product – ChatGPT 3.0 (Chat Generative Pre-trained Transformer) which was developed by Open AI, all eye brows raised and started working on impact matrices on various businesses

Back in 2021, Sam Altman, the CEO of Open AI, said, “working at OpenAI reminds me every day of the magnitude of the socio-economic changes that are going to happen faster than most people think. Software that can think and learn will increasingly do the work that people do today.”

He warned of a technological Tsunami, and here it is – ChatGPT.

ChatGPT – Technology

ChatGPT is an AI-powered chatbot trained over the latest GPT 3.0 model or the Generative Pre-Trained Transformer – OpenAI’s Generative Text Artificial Intelligence model. In short, ChatGPT exploits deep NLP and machine-learning techniques to provide human-like responses. ChatGPT is a conversational large language model that the company OpenAI developed. The model is capable of Reinforcement Learning from Human Feedback (RLHF). It can chat with as a normal chatbot would, give you factual answers to your questions, it asks you further questions if your question is incomplete, corrects its own errors based on your feedback, challenges your assumptions, politely refuses to answer inappropriate questions.  

A human can interact with ChatGPT with specific query or a question like any other search engine. ChatGPT will respond with a specific answer, which can be drilled down with further questions until user receives the complete answer. The major difference between a regular Search Engine like Google, Bing etc and the ChatGPT is the pattern of response. A normal Search engine will give hundreds of responses, based on keywords used in the query and user has to click all these links to obtain specific and related answer, which is knowledge-oriented.

In ChatGPT, the same question can be asked with specific query and the answer can be drilled down further until user will get complete understanding of the query. Hence ChatGPT is considered as the task-oriented search platform.

For Example, If a user asks a mathematical problem “Solve 2log3-3log2”, Google may respond with hundreds of links, where this problem is already recorded in transcripts, books or other weblinks. The ChatGPT will respond with a single answer with actual solution, which can be further drilled down.

In a way, It is cruel to compare search engines like Google, Bing etc, with ChatGPT, which is widely used currently. Search Engines are based on URL links and widespread knowledge base with updated information. ChatGPT is a virtual assistant backed with AI technologies based on limited data model, with pre-loaded information, which needs to be updated periodically. Hence both applications may be required to the user to maximize utility value.

ChatGPT – Limitations

ChatGPT is intuitive, but it has limitations and some with much more severe implications. Let’s take a look at them;

a)     One major downside of ChatGPT is that it’s limited by the data.

ChatGPT does not have knowledge of just about anything. It is trained on a data model which is limited to 2021. It means ChatGPT has no idea about what conspired in 2022.

b)    ChatGPT has serious accuracy issues.

It means the information it provides cannot be assumed to be accurate. The implications of these limitations are far outreaching; therefore, I have dedicated a whole section on this later in the article.

c)     ChatGPT cannot access the Internet.

ChatGPT cannot compare one piece of information with another more complete or latest one because it cannot access the Internet. Therefore, ChatGPT is limited in knowledge. It can only access what has been fed to it during the training process.

d)    ChatGPT sometimes lacks variation in the provided replies.

Let’s say you are unsatisfied with the response and want a different reply, or you slightly adjust the query to seek a different answer. However, it happens that ChatGPT comes with the same answer – no new information.

e)     ChatGPT won’t be free forever?

ChatGPT is available for free for now, but sooner or later, Open AI will monetize it. After all, it takes enormous resources to generate answers for the text prompts. When Elon Musk asked about it, Altman, OpenAI’s CEO, replied that each prompt cost around a cent.

As per Global Technology Protocols, few countries that do not have access to the ChatGPT and GPT-3 technology. These include China, Russia, Ukraine, Afghanistan, Iran, Belarus and Venezuela

ChatGPT – Business Application Value

ChatGPT has started showing its utility value in variety of sectors where human knowledge is repetitive in patterns, like health care, education, technology coding, geo-spatial sciences, travel information, legal and taxation, banking and insurance, manufacturing, supply chain management etc. Above sectors may use ChatGPT extensively due to following benefits, it may provide to users.

a)     Automation: ChatGPT-3 automates repetitive tasks like answering frequently asked questions. This frees up time for humans to concentrate on more complex tasks.

b)    Customer service is improved: ChatGPT-3 provides quick and accurate answers to customer questions, which leads to increased customer satisfaction.

c)     Increase efficiency: ChatGPT-3 processes large amounts of data quickly, accurately, and efficiently, which allows businesses to make better decisions.

d)    Cost saving: ChatGPT-3 helps to reduce costs by automating specific tasks. This can help you save time and money.

e)     Personalization: ChatGPT-3 generates personalized recommendations and responses based on the customer's preferences and history. This improves customer service.

f)      Scalability: ChatGPT-3 can handle large volumes of requests. This makes it an ideal solution for fohigh-trafficic businesses.

g)    Language capabilities: ChatGPT-3 supports seven languages. ChatGPT-3 allows businesses to reach a wider audience and offer global services.

h)    Creativity: ChatGPT can generate creative content for business purposes, such as email responses, product descriptions, and social media posts.

These inherent benefits attract many business applications in education, health care, science & technology, BFSI (Banking-Financial Services and Insurance), Supply Chain, Travel and Agriculture & Food industries in a big way. This will be a game changer in these sectors, based on deployment and user experiences.

ChatGPT Technology – A Real Disruption

Technology Adaptation Rate is an important metric to assess the impact of technology and its disruptive implications. Chat GPT is a proven disruptive technology in the market. ChatGPT was clicked as one of the fastest growing technologies, hitting a million users base with in 5 days of launch and crossing 100Million users base with in 2 months of launch. The accelerating user base clearly indicates that ChatGPT is going to spread like a wildfire in Search Engine and AI Chats market.

ChatGPT – Impact on Google 

Google remained as an undisputed leader in search engines business, managing over 8Billion search queries in a day, which accounts 90% of search market. Google earns Over 696Billion per year through search engine business alone, which contributes more than 60% of Google earnings. Obviously ChatGPT will disrupt Google’s time-tested business model in a big way. First time in its history, it issued “Code-Red” – a business disruption warning to its employees. Hence Google accelerated its development and beta-pilots on Google BARD, an AI tool, similar to ChatGPT, which may be launched during mid 2023.

ChatGPT-Business Impact.

The market is bullish in reaping value out of ChatGPT AI Tool, where it will certainly influence some key sectors like Health Care, Education, Science & Technology, BFSI, Aviation, Manufacturing, Supply Chain, Aerospace, Agriculture etc. However, the impact of disruption may not be the same on all sectors, subject to rate of deployment and ease of usage. 

Following major business Impacts are anticipated during next one year.

Higher Efficiencies: As per Global Business Report-2023 (WEF), AI and AI based tools like ChatGPT will enhance efficiencies by 27% in many sectors and up to 53%in few critical sectors. This will add value to the bottom lines of large operation companies, which have been bleeding for a while.

Precision & Accuracy : ChatGPT is expected to bring highest level of precision and accuracy in critical operational areas like Military Applications, Aero-Space, Aviation, Fintech, Health Care etc. This will bring down failure rates and improve return on capital deployment.

Predictability & Risk Minimization: ChatGPT is deployed right away in Fintech businesses due to inherent ability of ChatGPT to make accurate predictions and risk studies. This will further give huge boost to key applications like robotic-trading, climate studies and supply chain net works.

Job Cuts : 

Already Chat bots replaced many jobs, where human intervention is repetitive and routine. Further, ChatGPT will accelerate job cuts in Travel, Manufacturing and Technology sectors. The noted Economist Paul Krugg predicted around 27% of tech jobs may fall prey to ChatGPT.

Geo-Political Equations: By default, ChatGPT will create huge pressure on domestic politics due to job cuts and monopolistic business practices. Apart from this, the restricted block of countries as mentioned earlier, which include China, Russia etc. will not keep quiet. There will be huge challenge of technology poaching and cyber security. More cyber-attacks are anticipated to bring technology equilibrium in geo-political equations. This will further complicate geo-political equations, especially between West and China, Russia etc.

ChatGPT – Microsoft

ChatGPT will a golden goose for Microsoft in future. Microsoft has been struggling with Bing, to fight 50Billion dollars search engine business globally with a mere 9% market share. ChatGPT suddenly provided a power to Bing, through horizontal integration. Microsoft signed the 10Billion investment agreement with OpenAI, with a formula  of 76% profits in ChatGPT3.0 business and 49.1% stakes in OpenAI. Infact, this is a compromised structure as per Microsoft standards historically. However, this is a long term strategy to consolidate early-bird advantage in AI business, which will drive future business.

ChatGPT – Human Capabilities

All users may be noted that ChatGPT is  technology based tool like any other IT products. ChatGPT can not match with human intelligence and creativity horizons. However, ChatGPT can enhance human life standards and efficiencies to large extent.

(Written by Sai Prasad, CEO and Director www.globalgreenfund.org)