How the new ChatGPT can sometimes prove useless.

Dear LinkedIn readers, many YouTubers have been promoting the new ChatGPT as the next big thing in technology. Well, they might not have told you the whole story. The main issue here is how we, the users, are using it. Yes, often the problem is between the chair and the keyboard.

Ok, artificial intelligence has an amazing potential. It can summarize books, create poems, answer tough questions, and do much more. But the problem is often not with the AI itself, but with how we interact with it.

• The Challenge of Giving Enough Details in the prompt.

Let’s say you ask ChatGPT to explain something about accounting without mentioning you work under LuxGAAP standards. For us, this is obvious, but not for an AI. It might start explaining based on IFRS, US GAAP, or any other standards it thinks are right.

Here’s the issue: ChatGPT doesn’t know things we think are obvious. If we forget to give it the details it needs, it might go off in a completely wrong direction. What we get then? A well-written explanation, but not what we needed.

• Learn to give a good context in the prompt

Crafting a clear and specific prompt can make all the difference in the quality and relevance of the information you receive from an AI like ChatGPT.

For example, let's say that you received an email from a client saying "Wait, what the heck—dividends are taxed in Luxembourg? I thought Luxembourg was supposed to be a tax haven." It's time to go to your favourite IA to restore the truth.

You can ask it "Tell me about dividend tax". Well bad idea. IA don't necessary know where you live, so the answer is :

"Dividend tax refers to the tax imposed on the distribution of a company's profits to its shareholders in the form of dividends. Here are some key aspects of dividend tax:  Types of Dividend Tax:  1) Federal Income Tax: In the United States, dividends are subject to federal income tax. The tax rate depends on the taxpayer's income tax bracket. For the 2022 tax year, the tax rates are:10% for ordinary income tax rates15% for qualified dividend income (QDI) for taxpayers in the 10% to 37% tax brackets20% for QDI for taxpayers in the 37% tax bracket  2) State and Local Taxes: Some states and local governments also impose taxes on dividends. These taxes vary by jurisdiction and can range from 0% to 10% or more."        

Let's talk to him like he's mentally retarded : "I am a chartered accountant working in Luxembourg. One of my clients receives a dividend from a holding in which he has held 32% for 5 years. What will be the tax treatment of this transaction ?" Let's see what I get :

"In Luxembourg, dividends paid to a shareholder, who has held a significant shareholding for a substantial period, can benefit from favorable tax treatment under certain conditions. For your client, who has held a 32% shareholding for five years, the dividends received are subject to a withholding tax of 15% on the gross amount of the dividend. However, if the shareholder is a Luxembourg-resident company, or an entity resident within the EU or in a country with which Luxembourg has a double tax treaty, and the shareholding is at least 10% held for at least 12 months, then the dividends can be exempt from withholding tax. Additionally, the "SOPARFI" regime might apply which generally exempts dividends received from subsidiaries, provided the conditions of substantial participation, minimum holding period, and subject to a comparable tax regime are met. However, your client's 32% stake should be analyzed to ensure compliance with these thresholds for the SOPARFI benefits to be applicable."        

Yes but I also forget to tell him that I wanted to answer my client. The right prompt would be : "I am a chartered accountant working in Luxembourg. One of my clients sended my ths email "Wait, what the heck—dividends are taxed in Luxembourg? I thought Luxembourg was supposed to be a tax haven." He receives a dividend from a holding in which he has held 32% for 5 years. Explain to him the tax treatment. He loves details so give him as much legal references as possible. Invite him to a meeting if he needs more informations." Let's see the result :

• Advices

Be specific: Give as many details as you can. Think of AI as someone who knows nothing about your job and your client. Give him details about the situation.

Add context: Don’t assume it understands everything. If something matters to your question, mention it.

Explain what you want: What do you expect as an answer? A detailed explanation, a summary, examples, replying an email ? Make it clear!

A tool is only as good as how we use it. So, are you ready to become an expert in interacting with AI?