Skip to main content

ChatGPT for Dummies



The last couple of months my LinkedIn feed has been overwhelmed with posts about the new kid on the block called chatGPT. This gives the feeling that this AI-tool is already a mainstream tool known by everyone.

Nonetheless when talking to friends and family less involved in IT or not working in the Tech sector, chatGTP appears still to be an unknown. Therefore I thought it might be interesting to give an introduction to chatGPT for dummies, so let’s start with the basics.

What is chatGPT?

ChatGPT (abbreviation for Chat Generative Pretrained Transformer) is a tool, based on a large AI-based language model, which allows to generate human-like text (i.e. indistinguishable from text written by humans).

The model, trained on millions of texts found on the internet (exact amount is not publicly known, but believed to be in the range of hundreds of billions of words), generates texts by adding each time the word which has the highest correlation with all previous words in the conversation. As such it can be used to generate any content (e.g. blogs, poems, market studies…​), reply questions, but also execute more specific tasks, like e.g. generating programming code, translating texts, summarizing long documents, analyzing the sentiment of texts…​ As such it is generally recognized as the most advanced AI chatbot at the moment.

You can access it by going to https://chat.openai.com/ and registering. Afterwards you can converse with chatGPT for free (for now at least, it is likely that it will become paying in the future).

The success of chatGPT is enormous. In the first 5 days after its launch (on November 30, 2022) it counted already 1 million users (it took Facebook 10 months and Instagram 2,5 months to reach same numbers) and two months after its launch it reported to have 100 million users (it took TikTok 9 months and Instagram 2,5 years to reach this number of users).
It comes therefore as no surprise that Google initiated internally a code red, as they fear that chatGPT could be a danger for their flag product and core revenue source, i.e. the Google Search Engine.

Who is behind chatGPT?

ChatGPT is made available by OpenAI, which is together with DeepMind (part of the Google-Alphabet group and most famous for the AI model AlphaGo, which won in Go against the world champion) the most prominent player on the AI market at the moment.

OpenAI was founded in 2015 in San Francisco as a non-profit organisation to promote and research artificial intelligence (AI). The founders of the organisation are all famous Tech entrepreneurs like Elon Musk, Peter Thiel (Paypal co-founder and one the most known tech investors in Silicon Valley), Sam Altman (former president of the startup accelerator Y Combinator and now CEO of OpenAI), Jessica Livingston (founding partner of Y Combinator), Reid Hoffman (co-founder of LinkedIn)…​
In 2019 it transitioned into a commercial (for profit) company, with Microsoft investing heavily in the company, i.e. in 2019 Microsoft already invested $1 billion in the company and in January 2023 Microsoft announced a multi-year investment of $10 billion. Additionally Microsoft is planning to integrate chatGPT in its search engine Bing, which could be a game-changer, allowing for Bing to break the dominant position of Google Search Engine.

ChatGPT is furthermore not the only successful AI model offered by OpenAI. E.g. in 2021, OpenAI also launched Dall-E, which is an AI tool that allows to generate any kind of digital image based on a natural language description.

Should I use it?

chatGPT is incredibly powerful and versatile, as it can generate any content in any style in a matter of minutes. As such it can be an enormous aid for increasing the productivity of any knowledge worker. While the quality, speed and efficiency of the output of chatGPT is amazing, it comes still with a few limitations as well. As such the content produced by chatGPT should not be copy/pasted without any reflection and revision.

Typical limitations of chatGPT are:

  • The model is only as good as the data it was trained on. As the model was trained on public internet pages, some training data can be biased, erroneous or of low-quality, which will reflect also in the answers of chatGPT. The more specific the topic of the prompt, the more limited the training data set will have been, meaning a higher chance for quality issues.
    Especially the inherent bias of the model can be problematic and has already resulted in ethical debates. Numerous examples circulate on the internet where chatGPT showed strong bias and generated even discriminatory or even racist replies.

  • The generation of its output is very computationally intensive and requires significant resources. This can make it difficult or costly to use in certain settings, such as on low-power devices or in real-time applications. The CEO of OpenAI already mentionned in an interview that the cost per question is a few dollar cents. This seems low, but considering 100 million users executing several prompts each, you can do the math of how much money is being spent by OpenAI at the moment. You could argue that this money could be spent much better, as the majority of prompts are just for recreation and could be solved just as easily by a Google Search, which is much cheaper.

  • Due to its success, the system has become quite overloaded, which results in regular unavailability and general slowness for processing prompts. OpenAI has recently launched a paying service called ChatGPT Plus (at 20$ / month), which allows to get priority (i.e. access during peak times), faster responses and priority access to new features and improvements.

  • ChatGPT’s knowledge cutoff is September 2021, which means it is based on information that was available up until that date. It may not have knowledge of events or updates that have occurred since then.

  • Despite its incredible complexity, ChatGPT is still only a model that determines the best correlating word based on all previous conversation. This means the model does not have a deep understanding of the world or the ability to reason like a human. As a result some responses might be completely incorrect.

Some of those limitations are expected to be improved in the next version, i.e. GPTI 4, which is expected to be released in 2023.

In conclusion, yes you should use it, because it can help you enormously in improving your productivity, but remain sceptical of the result and use it only as a support tool.

How should I use it?

As mentioned before, after you are logged in, you can just ask any question and the reply will be formulated. After this reply, you can ask follow-up questions. In these follow-up questions, chatGPT will take into account the preceding conversation.

But the way you ask your question will also impact the quality of the response. The more precise your question the better the result and it’s advised to use certain guidelines (standards) in the question. Some people have already made it their profession to help companies providing the best prompts to chatGPT.

A good prompt typically consists of 3 parts:

  • First tell chatGPT who you are. This is done by a phrase like "Act like a …​" or "You are a…​" (e.g. "Act like a copywriting expert" or "You’re an expert career advisor"). Additionally you can provide more context allowing to really set the scene.

  • Then explain what you expect, i.e. define a task to complete (e.g. via "Your task is now to…​"). Optionally you can provide additional specific context of your domain. This will help chatGPT to be more accurate.

  • Finally explain how. Often this is done by expressing the language, the style (e.g. "In the style of …​") or the format (e.g. "In 5 bullet points") you want the reply to be in.

Some other good practices are:

  • Try to be as specific as possible in your prompts, i.e. the more specific the better the results will be.

  • Use correct language, i.e. avoid grammar mistakes, abbreviations or informal language

  • Ask to-the-point questions and avoid combining multiple questions in 1 prompt

  • As chatGPT keeps track of all previous context, ask follow-up questions on a reply, as those allow the model to provide answers with much more context and more tailered to your need.

The most important is of course to try it out yourself and play with the system, until it gives you the desired result. There are no wrong prompts, but with some practice and the above tips, the results you will get will be much more valuable.

Note: some phrases in this blog were generated by chatGPT. 
Note 2: the picture associated to this blog was generated by Dall-E.

Comments

Popular posts from this blog

Transforming the insurance sector to an Open API Ecosystem

1. Introduction "Open" has recently become a new buzzword in the financial services industry, i.e.   open data, open APIs, Open Banking, Open Insurance …​, but what does this new buzzword really mean? "Open" refers to the capability of companies to expose their services to the outside world, so that   external partners or even competitors   can use these services to bring added value to their customers. This trend is made possible by the technological evolution of   open APIs (Application Programming Interfaces), which are the   digital ports making this communication possible. Together companies, interconnected through open APIs, form a true   API ecosystem , offering best-of-breed customer experience, by combining the digital services offered by multiple companies. In the   technology sector   this evolution has been ongoing for multiple years (think about the travelling sector, allowing you to book any hotel online). An excellent example of this

Are product silos in a bank inevitable?

Silo thinking   is often frowned upon in the industry. It is often a synonym for bureaucratic processes and politics and in almost every article describing the threats of new innovative Fintech players on the banking industry, the strong bank product silos are put forward as one of the main blockages why incumbent banks are not able to (quickly) react to the changing customer expectations. Customers want solutions to their problems   and do not want to be bothered about the internal organisation of their bank. Most banks are however organized by product domain (daily banking, investments and lending) and by customer segmentation (retail banking, private banking, SMEs and corporates). This division is reflected both at business and IT side and almost automatically leads to the creation of silos. It is however difficult to reorganize a bank without creating new silos or introducing other types of issues and inefficiencies. An organization is never ideal and needs to take a number of cons

RPA - The miracle solution for incumbent banks to bridge the automation gap with neo-banks?

Hypes and marketing buzz words are strongly present in the IT landscape. Often these are existing concepts, which have evolved technologically and are then renamed to a new term, as if it were a brand new technology or concept. If you want to understand and assess these new trends, it is important to   reduce the concepts to their essence and compare them with existing technologies , e.g. Integration (middleware) software   ensures that 2 separate applications or components can be integrated in an easy way. Of course, there is a huge evolution in the protocols, volumes of exchanged data, scalability, performance…​, but in essence the problem remains the same. Nonetheless, there have been multiple terms for integration software such as ETL, ESB, EAI, SOA, Service Mesh…​ Data storage software   ensures that data is stored in such a way that data is not lost and that there is some kind guaranteed consistency, maximum availability and scalability, easy retrieval and searching

IoT - Revolution or Evolution in the Financial Services Industry

1. The IoT hype We have all heard about the   "Internet of Things" (IoT)   as this revolutionary new technology, which will radically change our lives. But is it really such a revolution and will it really have an impact on the Financial Services Industry? To refresh our memory, the Internet of Things (IoT) refers to any   object , which is able to   collect data and communicate and share this information (like condition, geolocation…​)   over the internet . This communication will often occur between 2 objects (i.e. not involving any human), which is often referred to as Machine-to-Machine (M2M) communication. Well known examples are home thermostats, home security systems, fitness and health monitors, wearables…​ This all seems futuristic, but   smartphones, tablets and smartwatches   can also be considered as IoT devices. More importantly, beside these futuristic visions of IoT, the smartphone will most likely continue to be the center of the connected devi

Neobanks should find their niche to improve their profitability

The last 5 years dozens of so-called   neo- or challenger banks  (according to Exton Consulting 256 neobanks are in circulation today) have disrupted the banking landscape, by offering a fully digitized (cfr. "tech companies with a banking license"), very customer-centric, simple and fluent (e.g. possibility to become client and open an account in a few clicks) and low-cost product and service offering. While several of them are already valued at billions of euros (like Revolut, Monzo, Chime, N26, NuBank…​), very few of them are expected to be profitable in the coming years and even less are already profitable today (Accenture research shows that the average UK neobank loses $11 per user yearly). These challenger banks are typically confronted with increasing costs, while the margins generated per customer remain low (e.g. due to the offering of free products and services or above market-level saving account interest rates). While it’s obvious that disrupting the financial ma

Can Augmented Reality make daily banking a more pleasant experience?

With the   increased competition in the financial services landscape (between banks/insurers, but also of new entrants like FinTechs and Telcos), customers are demanding and expecting a more innovative and fluent digital user experience. Unfortunately, most banks and insurers, with their product-oriented online and mobile platforms, are not known for their pleasant and fluent user experience. The   trend towards customer oriented services , like personal financial management (with functions like budget management, expense categorization, saving goals…​) and robo-advise, is already a big step in the right direction, but even then, managing financials is still considered to be a boring intangible and complex task for most people. Virtual (VR) and augmented reality (AR)   could bring a solution. These technologies provide a user experience which is   more intuitive, personalised and pleasant , as they introduce an element of   gamification   to the experience. Both VR and AR

Beyond Imagination: The Rise and Evolution of Generative AI Tools

Generative AI   has revolutionized the way we create and interact with digital content. Since the launch of Dall-E in July 2022 and ChatGPT in November 2022, the field has seen unprecedented growth. This technology, initially popularized by OpenAI’s ChatGPT, has now been embraced by major tech players like Microsoft and Google, as well as a plethora of innovative startups. These advancements offer solutions for generating a diverse range of outputs including text, images, video, audio, and other media from simple prompts. The consumer now has a vast array of options based on their specific   output needs and use cases . From generic, large-scale, multi-modal models like OpenAI’s ChatGPT and Google’s Bard to specialized solutions tailored for specific use cases and sectors like finance and legal advice, the choices are vast and varied. For instance, in the financial sector, tools like BloombergGPT ( https://www.bloomberg.com/ ), FinGPT ( https://fin-gpt.org/ ), StockGPT ( https://www.as

PFM, BFM, Financial Butler, Financial Cockpit, Account Aggregator…​ - Will the cumbersome administrative tasks on your financials finally be taken over by your financial institution?

1. Introduction Personal Financial Management   (PFM) refers to the software that helps users manage their money (budget, save and spend money). Therefore, it is often also called   Digital Money Management . In other words, PFM tools   help customers make sense of their money , i.e. they help customers follow, classify, remain informed and manage their Personal Finances. Personal Finance   used to be (or still is) a time-consuming effort , where people would manually input all their income and expenses in a self-developed spreadsheet, which would gradually be extended with additional calculations. Already for more than 20 years,   several software vendors aim to give a solution to this , by providing applications, websites and/or apps. These tools were never massively adopted, since they still required a lot of manual interventions (manual input of income and expense transaction, manual mapping transactions to categories…​) and lacked an integration in the day-to-da

Deals as a competitive differentiator in the financial sector

In my blog " Customer acquisition cost: probably the most valuable metric for Fintechs " ( https://bankloch.blogspot.com/2020/06/customer-acquisition-cost-probably-most.html ) I described how a customer acquisition strategy can make or break a Fintech. In the traditional Retail sector, focused on selling different types of products for personal usage to end-customers,   customer acquisition  is just as important. No wonder that the advertisement sector is a multi-billion dollar industry. However in recent years due to the digitalization and consequently the rise of   Digital Marketing , customer acquisition has become much more focused on   delivering the right message via the right channel to the right person on the right time . Big tech players like Google and Facebook are specialized in this kind of targeted marketing, which is a key factor for their success and multi-billion valuations. Their exponential growth in marketing revenues seems however coming to a halt, as digi

Low- and No-code platforms - Will IT developers soon be out of a job?

“ The future of coding is no coding at all ” - Chris Wanstrath (CEO at GitHub). Mid May I posted a blog on RPA (Robotic Process Automation -   https://bankloch.blogspot.com/2020/05/rpa-miracle-solution-for-incumbent.html ) on how this technology, promises the world to companies. A very similar story is found with low- and no-code platforms, which also promise that business people, with limited to no knowledge of IT, can create complex business applications. These   platforms originate , just as RPA tools,   from the growing demand for IT developments , while IT cannot keep up with the available capacity. As a result, an enormous gap between IT teams and business demands is created, which is often filled by shadow-IT departments, which extend the IT workforce and create business tools in Excel, Access, WordPress…​ Unfortunately these tools built in shadow-IT departments arrive very soon at their limits, as they don’t support the required non-functional requirements (like high availabili