The business risk of ChatGPT

Businesses of all shapes and sizes are starting to embrace artificial intelligence (AI) powered tools such as ChatGPT.?

Its uses are almost limitless, from writing marketing content to generating business proposals and so much more.

But it's also important to understand its limitations and risks.

What is ChatGPT??

ChatGPT is like a super smart computer program that can have conversations with people.

It's designed to understand and generate human-sounding text based on what it has learned from reading a lot of information. It can answer questions, provide explanations and have discussions on a wide range of topics.

But it's important to remember it's just a machine.

Small businesses can use ChatGPT to help with customer support, lead generation, content creation, market research and many other uses.?

How can small businesses use ChatGPT?

Adam Stewart, the founder of Digital Bond Marketing, says ChatGPT has many uses for small businesses.??

?"It's incredibly versatile. It can be used for customer service automation, for instance, as a chatbot to answer FAQs, book appointments or handle simple customer queries around the clock. This can free up your team's time for more complex tasks," says Adam.

“While ChatGPT and similar tools can automate many tasks they can't replace human judgment and intuition”

"When it comes to content creation, it can be used for blog posts, social media content and to help generate ideas. It can even draft content. This is particularly useful for small businesses with limited resources," he adds.

Adam explains it's a great tool for productivity.

"ChatGPT can help with drafting emails, brainstorming ideas, writing code and a host of other applications that can help make your day-to-day work more efficient."

Making the most of ChatGPT

To get the most out of ChatGPT, small businesses need to clearly understand its uses as well as its limitations and risks.?

"Figure out how you want to use it. Once you have your goal in mind, you can better train and fine-tune the AI to suit your needs," he adds.

Training is critical, according to Adam.

"While ChatGPT comes pre-trained on a large corpus of data, you may need to train it further on your specific data and tasks to get the best results."

So, learn and improve as you go. By providing feedback and correcting mistakes, you can help the AI perform better in the future.

One of the best ways to do this is to give ChatGPT all the information it needs to produce the right response for you.?

"Segment chats according to tasks you are trying to do. If you get responses you're not happy with, tell ChatGPT where it needs to improve, and it will be trained on the type of response you want. Next time you use ChatGPT inside this chat, it will give tailored responses based on the training you have given it," says Adam.

What are the AI risks for small businesses?

For small businesses, data privacy is one risk that requires management when it comes to AI tools.?

"Businesses must ensure they handle and store data in a secure and compliant way. Additionally, it's crucial to be transparent with customers about how their data is being used," says Stewart.

When using ChatGPT, it is imperative that you exercise caution and not include confidential or sensitive information, including both business?–?related and personal data.

Another danger is over-reliance on AI. While ChatGPT and similar tools can automate many tasks, they can't replace human judgment and intuition.

It's important to always have a human in the loop, reviewing and supervising the AI's decisions and outputs.

Lastly, consider that AI models can sometimes make mistakes or produce biased results, particularly if the data they are trained on is flawed.

Regularly monitoring the AI's performance and taking steps to mitigate bias are essential practices for any business using AI.

Insurance and Artificial Intelligence

AI tools like ChatGPT can potentially transform how small businesses operate.

If you are embedding AI across your company, it's a good idea to talk to your broker to help make sure your cover is still fit-for-purpose.?Contact a broker today to find out more.

Important note

All information in this article is of a general nature only. This information does not take into account your specific objectives, financial situation or needs.?It is also not financial advice, nor complete.?You should consider the appropriateness of the information, before you act on any information.? Information in this article is subject to change.?Steadfast Group Ltd ACN 073 659 677