Artificial intelligence (AI) tools like ChatGPT are revolutionizing how we communicate, learn, and solve complex problems across various industries. Here’s what ChatGPT is, how it works, and how to start using it to support your small business.
What is ChatGPT?
ChatGPT is an AI chatbot powered by the generative AI model GPT, short for “generative pre-trained transformer.” GPT is a machine learning algorithm “trained” on a massive corpus of text data, drawing on it to learn patterns, grammar, facts, and various language nuances to generate natural responses to user inputs (called prompts). ChatGPT and its underlying architecture were developed by AI technology research organization OpenAI.
How does ChatGPT work?
Generative AI tools like ChatGPT use what’s known as a large language model (LLM), an AI model that can predict the next word in a sequence based on previous words and strings of words, helping it simulate an understanding of a wide range of processes and inputs.
LLMs are distinguished from early AI models by their ability to learn. Whereas previous AI systems required human AI trainers to upload pre-categorized data—a process referred to as supervised learning—LLMs can learn from unstructured source information. This lets developers train the models on increasingly vast amounts of source data—hence the “large” in large language model.
GPT’s makers used a combination of supervised and unsupervised learning techniques to develop its algorithm. First, they essentially fed the tool the entire publicly available internet, letting it develop the statistical model it uses to predict the probability of a specific word occurring in a sequence and write rules that modify that statistical model based on nuance in a given prompt.
If a user asks for directions to a Walmart store delivered in the style of poet Walt Whitman, for example, the statistical model favors words, word combinations, imagery, and grammatical structures common in Whitman’s work.
GPT developers then used an approach known as reinforcement learning with human feedback (RHLF) to fine-tune the model. OpenAI’s fine-tuning process employed human trainers to rank responses based on quality, implementing a reward model that improved the tool’s ability to identify contextually appropriate responses.
OpenAI launched the ChatGPT AI tool publicly in November 2022. Older GPT models—like GPT-3—are open-source, meaning that both the technology and its underlying algorithm are free to use, modify, and share. The most recent of OpenAI’s several iterations, GPT-4, which offers improved accuracy, understanding, efficiency, and safety, is available only to paying ChatGPT Plus subscribers.
Benefits of ChatGPT
ChatGPT can support a range of personal and business tasks. Here are its key benefits:
ChatGPT is fast
Generating text with ChatGPT can save you a lot of time. The tool can write a blog post or summarize an article in just a few seconds. For users with even greater urgency, a ChatGPT Plus membership offers priority access and reduced wait times.
ChatGPT is multilingual
ChatGPT can create content in more than 50 languages and translate existing content, making it indispensable if you operate in multilingual markets or conduct international research. It can also write code in over 15 programming languages and help you with code syntax questions.
ChatGPT offers a free plan
The free version of ChatGPT (which uses the GPT-3.5 LLM) allows unlimited messaging. It maintains a message history, which means ChatGPT remembers your previous questions and can use the information to improve its responses.
The paid version (GPT-4) also offers access to DALL-E image generation tools and advanced data analytics.
ChatGPT includes safeguards
ChatGPT can challenge incorrect premises and refuse to provide unsafe content, such as answers that would enable illegal activities. ChatGPT responds to these questions by refusing to assist, recommending safe and legal alternatives, or providing access to community support resources.
Limitations of ChatGPT
- ChatGPT can give wrong answers
- ChatGPT has limited access to recent information
- ChatGPT relies on existing knowledge
Of course, ChatGPT isn’t perfect. Keep these limitations in mind to maximize its benefits and avoid errors:
ChatGPT can give wrong answers
ChatGPT is only as accurate as its source data, meaning it can supply incorrect information or reflect the biases of source materials. (OpenAI is upfront about this; the fine print under the prompt bar reads, “ChatGPT can make mistakes. Consider checking important information.”) The tool sometimes writes plausible-sounding but essentially nonsensical answers, and responses can also be excessively verbose.
ChatGPT also doesn’t cite specific sources to substantiate its claims, making it difficult for ChatGPT users to gauge the reliability of responses.
ChatGPT has limited access to recent information
ChatGPT was trained on data available up to September 2021 and has limited access to more recent information, so it can’t report on recent trends or events.
In early 2023, OpenAI announced its decision to grant paid versions of ChatGPT real-time internet access, a new feature that lets the tool generate responses informed by recent information. The company plans to extend internet access to all ChatGPT models.
ChatGPT relies on existing knowledge
ChatGPT can create unique content, brainstorm ideas, and combine information in new ways, but it’s ultimately limited to recognizing and reproducing existing patterns. Although the tool can simulate human intelligence, it can’t create new knowledge or produce insights beyond its source material.
If your goal is to add to the existing body of human knowledge, ChatGPT may support the process, but it can’t do it for you.
How to access ChatGPT
- Navigate to the OpenAI website
- Sign up for an OpenAI account
- Verify your email
- Configure your account
- Start using ChatGPT
Here’s how to set up an account and start using ChatGPT.
1. Navigate to the OpenAI website
Go to OpenAI.com then hover over ChatGPT in the main menu and select “Try ChatGPT.” You can also go directly to the tool by typing chat.openai.com into your address bar.
2. Sign up for an OpenAI account
Select the button that says Sign Up, enter your email address, and create a password. You can also sign up using an existing Google or Microsoft account.
3. Verify your email
Navigate to your email inbox, open the email from OpenAI, and click the verification link to verify the email address associated with your account.
4. Configure your account
Once you’ve verified your email, you can start using ChatGPT.
To configure your account, click on your username, located in the bottom-left-hand corner of your browser window. The pop-up menu lets you adjust your settings and provide custom instructions to help ChatGPT meet your needs. OpenAI suggests sharing information about your location, occupation, hobbies, and goals.
5. Start using ChatGPT
You can ask ChatGPT questions by typing them in the text field at the bottom of your browser window. Provide feedback using the thumbs-down button located below each response, or simply tell the tool whether a given response meets your needs.
How to use ChatGPT
ChatGPT is flexible. You can use it to play games, compose music, or support a range of professional and business-related tasks. Here are a few of the most popular use cases for business owners:
Create marketing content
Use ChatGPT to quickly create marketing content like social media posts, blogs, or emails. You can also use it to rewrite content for different publication channels (i.e., to rework a blog into a marketing email), optimize existing content for search, or proof content for spelling or grammatical errors.
ChatGPT also lets you provide voice and tone parameters. Specify a tone or feed it source data (like your own blog posts) and ask it to create new content using the same tone. Because this is a relatively small amount of training data, be prepared to revise the content to reflect your unique brand voice more accurately.
Provide customer support
You can use a third-party plug-in to integrate ChatGPT into your customer service platform. Train the tool on company information and configure it to answer common customer questions and escalate difficult cases to a member of your customer support team. ChatGPT-powered API integrations can also assist with data entry and automate specific tasks, like updating customer profiles or creating support tickets.
Human customer service agents can also use ChatGPT as an AI assistant. The tool can efficiently generate personalized and comprehensive responses to queries.
Summarize content
ChatGPT can summarize articles or reports, speeding up your research process by distilling complex topics into a few key points. Note that the tool can’t retrieve information from URLs or external databases, so you must paste content directly into the application to use this feature.
It also can’t read messages longer than 4,096 characters, so you might need to split up longer pieces into several sections.
Conduct market research
GPT can provide information about a market’s size, segments, and customer demographics. It can also identify challenges, opportunities, and trends, substantiate claims with relevant statistics, and write concise research previews to accompany reports.
Keep in mind that the free version of ChatGPT doesn’t yet have access to information about anything that happened after September 2021, so supplement its research to identify more recent trends.
AI ChatGPT FAQ
What are alternatives to ChatGPT?
Other chatbots similar to ChatGPT include Google’s Gemini, Jasper, Writesonic, and Bing AI.
Are there ethical concerns with ChatGPT?
Some industry leaders have expressed concern that tools like ChatGPT herald the development of “dangerously strong AI.” ChatGPT-generated content is also notoriously difficult to identify: Leading classification tools—AI detection algorithms—generate high rates of false positives and false negatives.
Can ChatGPT be used for business?
Yes. You can use ChatGPT for business tasks like content creation and market research. You can also use ChatGPT-powered API integrations for data entry, workflow automation, and customer service applications.