ChatGPT is an artificial intelligence-driven chatbot developed by OpenAI based on the GPT-3.5 architecture. ChatGPT was released to the public in October 2022, and has taken the world by storm. Using ChatGPT for finance and accounting can have both pros and cons.
On one hand, ChatGPT provides accurate responses to complex financial and accounting questions swiftly. On the contrary, relying entirely on an AI model can lead to errors. AI can’t replicate human expertise in the field of finance and accounting. Like any technology, ChatGPT has both positive and negative impacts. Some of the positive and negative impact of AI based technology have been listed below:
The Positive Impacts
- Optimized investment analysis
ChatGPT is capable of analyzing massive volumes of financial data and can generate beneficial financial insights allowing investors to make accurate investment decisions. ChatGPT conducts real-time analysis providing investors with up-to-date information regarding profitable market trends, thus, minimizing losses.
ChatGPT is also capable of detecting potential losses in risky investments. This helps investors to make a more judicious decision. ChatGPT analyzes past market trends and patterns that can be used to predict future market behavior. This is the most relevant positive impact of ChatGPT on finance and accounting.
- Better fraud detection
ChatGPT has the potential to identify fraud cases quickly and take the necessary actions in no time. ChatGPT can be trained to detect irregularities in financial transactions. Unusually large and frequent transactions indicate fraudulent activities. ChatGPT ensures the integrity of the financial data.
ChatGPT is also capable of analyzing financial data. Transactions occurring at odd times or between opposite parties may have fraud potential. ChatGPT can analyze unstructured data leaks and sources such as emails and generate warning signs of fraudulent behavior.
- Better customer support
ChatGPT can be integrated into chatbots and can provide fast, accurate, and customized responses to customer queries and can resolve the tickets raised. Since ChatGPT is an AI language model, it is capable of providing 24/7 assistance to customers. It is capable of resolving customers’ queries around the clock.
ChatGPT can be trained to respond to a customer’s query individually and provide the customer with accurate information. Thus, dispensing engrossing and rapid service. ChatGPT can be trained to be an automated assistant capable of resolving simple issues without human intervention.
The Negative Impacts
- ChatGPT as a substitute for human analysts
ChatGPT has caused a breakdown in the job market. Companies have started using ChatGPT as a substitute for human analysts resulting in the crashing of the job market of data analysts. Companies should use ChatGPT as a tool to enhance the human analyst’s capabilities, not to replace them.
ChatGPT has led to a rapidly diminishing requirement for skilled human resources in finance and accounting. While companies may benefit by reducing costs, they are losing the specialized knowledge and expertise that AI isn’t capable of. Human analysts are capable of crucial thinking which AI models like ChatGPT can not replicate.
- ChatGPT lacks transparency
ChatGPT lacks transparency in the field of finance and accounting. ChatGPT is an AI language model based on complex machine learning algorithms. ChatGPT algorithms are based on past statistical patterns rather than present market trends thus, making it difficult to interpret its predictions and insights.
ChatGPT predictions and insights are based on data structures it is trained on which may be biased or liable to inaccuracies. Investors may make wrong decisions based on biased information. ChatGPT lacks accountability. If things go wrong, no one can be held accountable or find the source of the error.
- Highly vulnerable to cyberattacks
To provide predictions and insights, ChatGPT needs access to large amounts of sensitive financial information. This extremely valuable data can be breached by cybercriminals. Cybercriminals may inject malicious data into the model during the beta phases, manipulating the predictions in their favor.
ChatGPT is a well-known AI language model and is at high risk of model theft. If the attacker somehow manages to get access to the model’s code, they can use it to manipulate the model with malicious intent.
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