The chatbot that shook the world

ChatGPT, the AI bot that took the internet by storm, is getting better and smarter. From a standing start in November, it has grown to more than 153 million users.* The fastest-growing consumer application is also the most intelligent yet, with Microsoft claiming its latest update is "strikingly close to human-level performance."

Interestingly, Open AI, the brain behind the text-generating bot, started as a non-profit research lab in 2015 but now has ambitions of generating $1 billion in revenue by 2024—thanks to Microsoft's $10 billion investment in the company, a deal that has shaken up Silicon Valley.

Given the massive adoption across industries, the generative AI technology promises to be as widespread as the internet or the cloud, and so far, it appears to be a rare bright spot in an otherwise gloomy 2023.

The improved version of ChatGPT, GPT-4, further proves its mettle. It promises to hallucinate less and make fewer reasoning errors. Yes, AI bots tend to make up facts, but that hasn't stopped investors from drooling. The global generative AI market is expected to reach $42.6 billion in 2023, with implications across sectors. (PitchBook).

The generative AI gold rush

Microsoft co-founder Bill Gates warns that white-collar jobs will be the ones most affected by generative AI. Jobs with the highest exposure include tech and data-intensive roles like accountants, financial planners, marketing, communication and public relations.

In terms of industries, the most affected ones are likely to be customer service, law, finance, manufacturing, healthcare, sales, customer support, and media and content creation, with the following sectors leading the charge:

1. Search: ChatGPT's human-like answers to queries have the potential to disrupt the business of search. Microsoft has integrated the ChatGPT platform into Bing, which has long struggled to compete with Google Search. The new Bing now has over 100 million users.

Meanwhile, Google has also introduced its generative AI bot, Bard, but is treading carefully with the rollout after losing about $100 billion in a single day following a factual error in the launch demo.

2. Finance: AI adoption in finance has been prevalent for some time, with almost 70 per cent of financial service companies utilising machine learning and AI to analyse cash flow events, improve credit scores, and detect fraud, according to Deloitte Insights.

But, with the emergence of generative AI technology, personalisation in the industry can be taken to new heights. Banks such as Westpac are already utilising ChatGPT to assist in drafting letters and policies for customers, while Goldman Sachs is experimenting with generative AI tools to generate and test codes.

3. Consultancy: ChatGPT is being touted as the consultant of the future, having cleared several top exams, including the bar exam, SAT and GRE. Consulting firms like KPMG, PWC and BAIN have partnered with OpenAI to accelerate their due diligence and regulatory compliance processes.

For example, KPMG has launched KymChat, a customised version of ChatGPT, to fast-track sales proposals. As of now, it has identified 62 use cases for AI chatbots.

4. Academia: Generative AI requires major changes in how we approach learning and assessment. As ChatGPT becomes more prevalent in the workplace, banning it in schools and universities may not be a viable solution.

Despite widespread concerns about plagiarism, schools and universities are warming up to ChatGPT and using it as a teaching tool to prepare lesson plans, mock tests and assessments.

Some South Australian universities have also allowed students to use ChatGPT as long as it is disclosed, while the University of Cambridge lets students use ChatGPT except for exams.

5. Marketing: Coca-Cola and Salesforce are already ahead of the game in leveraging generative AI technology for marketing. While Coca-Cola uses ChatGPT to develop digital creatives, Salesforce has launched its own tool Einstein GPT to create content for sales, marketing, commerce and customer service verticals.

In addition, AI has now penetrated the design field, which was previously believed impervious to automation. The role of the designer is changing from that of a creator to a curator, as evidenced by the use of generative AI by companies like Mattel in designing Hot Wheels cars.

This is only the beginning. As generative AI technology advances and matures, its capabilities will extend beyond automating processes and generating and processing content.

*Similarweb: https://www.similarweb.com/blog/insights/ai-news/chatgpt-1-billion/

Disclaimer: This article is prepared by Ankita Rai. It is for educational purposes only. While all reasonable care has been taken by the author in the preparation of this information, the author and InvestmentMarkets (Aust) Pty. Ltd. as publisher take no responsibility for any actions taken based on information contained herein or for any errors or omissions within it. Interested parties should seek independent professional advice prior to acting on any information presented. Please note past performance is not a reliable indicator of future performance.</