GPT-3 use cases within banking, finance and fintech
Since its release in November 2022, artificial intelligence (AI)-powered chatbot ChatGPT has garnered much excitement in the tech industry, praised by industry observers and experts for its ability to accurately answer questions, mimic human language and complete a wide range of tasks, from create software to formulate business ideas.
Developed by the American AI research laboratory OpenAI, ChatGPT is a chatbot capable of articulating answers across many domains of knowledge, handling complex questions, debugging computer programs, composing music, writing poetry and much more.
ChatGPT leverages Generative Pre-trained Transformer 3 (GPT-3), a language model trained on large Internet datasets. GPT-3 is aimed at natural language answering of questions, but it can also translate between languages and coherently generate improvised text.
With 175 billion parameters, GPT-3’s language model is said to be one of the largest language processing AI models to date, making it better than any previous model for producing human-like text.
In the banking and fintech sector, the applications for GPT-3 are wide-ranging and include chatbots for customer enquiries, document processing and report generation, personal financial advice, financial forecasting and fraud detection, to name a few.
Customer support and inquiries
GPT-3 can be integrated into virtual assistants to provide 24/7 customer support and quickly respond to a customer’s financial inquiry, whether it’s an account balance inquiry or getting an update on a loan status.
The technology can also be used to facilitate the work of support staff, for example by classifying tickets based on their content and then having them properly assigned, or by summarizing requests so that agents can quickly understand the problem and provide an appropriate response in a fast manner.
Document processing
Because GPT-3 is able to automatically extract information from documents and text, the technology can be used to generate financial reports and summaries, ultimately reducing time and effort in manual data analysis and processing.
The technology is capable of analyzing large amounts of financial data, identifying patterns and extracting critical insights, making it a powerful tool for use cases such as financial forecasting and investment analysis.
Personal financial advice
Advisers can use GPT-3 to provide personal financial advice to their clients. The technology can be used to generate tailored financial plans and investment strategies based on a user’s goals, risk tolerance and financial situation. It can also identify consumption patterns and provide suggestions for budget optimization.
Using GPT-3 for personalized financial advice will involve integrating the technology with a financial management platform, thereby providing the necessary customer financial data to formulate relevant recommendations.
Loan processing
In loan processing, GPT-3 can streamline the underwriting process by automatically analyzing and assessing a borrower’s financial situation, credit history and income.
The technology can also help improve credit decisions by reducing the risk of human error, identifying risk factors that would otherwise be overlooked, and automatically flagging potential risks.
Fraud detection
Banks can also use GPT-3 for fraud detection. Organizations can use historical fraud and transaction data to train GPT-3 to recognize anomalies in transaction patterns, detect fraudulent activity, and flag anomalies.
The technology can help detect and prevent fraud by generating alerts and reports, and by notifying relevant personnel of potential fraud.
GPT-3 creator OpenAI is ranked by AI researchers as one of the top three AI labs worldwide. The company earlier this month received a multi-year, multibillion-dollar investment from Microsoft, a deal that marked the third phase of the partnership between the two companies and followed previous investments from the tech giant in 2019 and 2021.
OpenAI’s AI chatbot ChatGPT went viral shortly after its release on November 30, 2022, surpassing one million users in just five days.
Venture capital investment in generative artificial intelligence, or algorithms that can be used to create original content, increased nearly 500% between 2020 and 2022 to $1.37 billion, data from Pitchbook shows.
Generative AI funding rounds, Source: Pitchbook, December 2022
Featured image credit: freepik
