Can You Really Rely on ChatGPT for Export and International Expansion?

After a conversation with an experienced export manager, I was struck by something unexpected: he told me he uses ChatGPT to learn more about local markets and industry-specific trends! ?? This sounded quite strange to me. How could he depend on AI for such expert-level topics? ??

Curious, I decided to investigate further. I conducted my own tests, asked around, and even directly asked ChatGPT to evaluate its own reliability on various international expansion topics. The results were both fascinating and surprising! Here’s what I found out:

?? Reliability of ChatGPT on International Expansion Topics:

• Local Industry-Specific Questions

Reliability: ~50%

ChatGPT admits that it’s only about halfway reliable when dealing with local industry specifics. This makes sense since AI relies on general knowledge and may not capture the nuances or updated specifics of a particular industry in a particular market.

• Finding Prospects with Contact Details

Reliability: 0%

AI simply isn’t equipped to find or verify real contact details. It may even fabricate data, making it completely unreliable for prospecting.

• Regulatory and Compliance Information

Reliability: 30-40%

While ChatGPT can provide a general overview, regulations and compliance rules change frequently and are highly specific. You definitely need a real expert or up-to-date resources for this.

• International Trade Data

Reliability: 20-30%

Forget about using ChatGPT for precise trade data; it doesn’t access live databases or current trade statistics.

• Finding the Best Market for Your Products

Reliability: 30-40%

While AI can provide a basic market overview, it lacks the depth of analysis required to make well-informed market entry decisions.

?? But Here’s What You Can Rely on ChatGPT for (90%+ Reliability):

1. General Market Overviews ?? ChatGPT can give you a solid starting point with general economic profiles, industry landscapes, and cultural insights about different countries or regions.
2. Basic Export Readiness Checklists ? It’s a reliable resource for standard steps and checklists when preparing for international expansion, like assessing product-market fit and understanding logistics needs.
3. Cultural Etiquette and Business Norms ?? Get accurate information on business etiquette, negotiation styles, and cultural norms to help navigate initial interactions in foreign markets.
4. Trade Terminology and Definitions ?? When it comes to understanding trade jargon, like Incoterms or letters of credit, ChatGPT is a great go-to resource.
5. Market Entry Models and Theories ?? AI can provide a solid understanding of different market entry strategies (like franchising or joint ventures) and their pros and cons.
6. Global Branding Principles ? Offers consistent guidance on creating and maintaining a global brand identity across different markets.

Takeaway? ??

While ChatGPT can be a valuable tool for some aspects of international expansion, there are areas where its reliability drops significantly. For specialized, current, or highly detailed information, it’s always best to use expert tools or consult with real-world experts or use dedicated professional tools. But for general knowledge, foundational insights, and understanding broad strategies, AI can definitely be part of your toolkit!

So, how do you use ChatGPT in your international expansion strategy? Are there other topics where you’ve found it particularly helpful or not? Let’s discuss! ??