Banking and legal experts think ChatGPT could be a major disruptor
Many industries are concerned about the ramifications of AI chatbot, ChatGPT, but experts in the banking and legal fields say the technology can add value to their industries.
ChatGPT has recently dominated the news cycle, with users across the world posing questions to OpenAI’s software daily.
The large language model chatbot uses dialogue to respond to user questions. The model consists of 175 billion parameters and is trained with 570 gigabytes of text sourced from text databases across the internet, incorporating reinforcement learning with human feedback (RLHF), which generates human-like written paragraphs.
ChatGPT also uses machine learning, meaning that the more people use it, the better the text responses become.
However, questions remain regarding ChatGPT’s future and if businesses will need to adapt to new technology.
In the financial services industry, there are concerns that investment banks may have no place in the future, as ChatGPT has the potential to disrupt services offered by banks.
Heloise Greeff, an eToro Popular Investor, said that ChatGPT has the potential to massively aid the investment banking system, as it can process large amounts of data leaving staff to focus on more value-added activities.
“This is a phenomenal AI tool and, rather than being frightened of it, everyone in the financial sector should learn about it and see how they can use it in their own work,” says Greef.
Greef added that ChatGPT will allow financial retailers the opportunity to analyse financial data in ways that were previously not possible, providing additional information on companies, shares, moves in the market, etc.
ChatGPT may also have some advantages in the legal sphere.
Andrew Perlman (Perlman), the Dean of the Suffolk University Law School in Boston, USA, conducted various studies using ChatGPT.
He said that the responses from ChatGPT provided good starting points for preparing legal drafts, and could address issues in routine legal matters.
He added that legal practitioners would be able to use the technology to enhance their work quality.
Moreover, the possibilities of ChatGPT’s artificial intelligence are also limitless due to the in-built RLHF.
Potential legal concerns
Ridwaan Boda and Alexander Powell from ENS Africa said that ChatGPT does have several drawbacks.
For instance, ChatGPT relies heavily on human interaction to learn new facts, and users may provide the system with credible-sounding, but ultimately incorrect information.
Moreover, the use of ChatGPT in the legal field has some potential risks.
The chatbot currently only has a limited amount of data and cannot analyse new legal judgement or adjustments to the legislature. The amount of South African legislative data that the chatbot has learnt also remains unknown.
ChatGPT also poses a data privacy concern, as it interacts with various users, posing the risk that sensitive or personal information may be shared with one user without the respective data user’s consent. This data could then be used to train ChatGPT.
In addition, ChatGPT may not be able to identify proprietary material when it analyses vast quantities of data, meaning that the chatbot might share copyrighted material without the correct licensing.
However, Natalie Scott, Kyra South, and Janice Geel from Werksmans Attorneys said that the ChatGPT also comes with disclaimers, which state that the information it provides may not be entirely accurate. They added that ChatGPT is not intended to give any advice.
ChatGPT will also offer further disclaimers when sector-specific questions are asked, suggesting that users rather get professional advice.
Despite some reservations, Boda and Powell still believe that the lawyers who have taken the time to understand ChatGPT will be able to use the Chabot for everyday tasks, such as sending an email or finding an answer to a legal matter.
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