30 C
Mumbai
Wednesday, October 4, 2023

GPT-3 use cases in banking, finance and fintech

Since its launch in November 2022, the artificial intelligence (AI)-powered chatbot ChatGPT has generated a lot of buzz in the tech industry, praised by industry observers and experts for its ability to answer questions accurately, mimic human language and complete a wide range of tasks. from the creation of software to the formulation of business ideas.

Developed by American AI research lab OpenAI, ChatGPT is a chatbot that can articulate responses across many knowledge domains, handle complex queries, debug computer programs, compose music, write poetry, and much more.

ChatGPT leverages the Generative Pretrained Transformer 3 (GPT-3), a language model trained on large Internet data sets. GPT-3 is aimed at answering questions in natural language, but it can also translate between languages ​​and generate impromptu text consistently.

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, spanning chatbots for customer inquiries, document processing and reporting, personalized financial advice, financial forecasting, and fraud detection, to name a few.

Customer service and inquiries

GPT-3 can be integrated into virtual assistants to provide 24/7 customer support and respond to a customer’s financial inquiry quickly, whether it is an account balance inquiry or a Loan status update.

Technology can also be used to make the work of support staff easier, for example by classifying tickets based on their content and then assigning them accordingly, or by summarizing queries, helping agents quickly understand the issue and provide an appropriate response. . quickly.

Document processing

Because GPT-3 can automatically extract information from documents and text, the technology can be used to generate financial reports and summaries, ultimately reducing the time and effort spent on manual data analysis and processing.

The technology is capable of analyzing large amounts of financial data, identifying patterns, and extracting critical information, making it a powerful tool for use cases such as financial forecasting and investment analysis.

Personalized financial advice

Advisors can use GPT-3 to provide their clients with personalized financial advice. The technology can be used to generate personalized financial plans and investment strategies based on the user’s objectives, risk tolerance and financial situation. You can also identify spending patterns and offer suggestions to optimize the budget.

Using GPT-3 for personalized financial advice would mean integrating the technology with a financial management platform, thus giving you the client financial data you need to make relevant recommendations.

loan processing

In loan processing, GPT-3 can make the underwriting process more efficient by automatically analyzing and evaluating the borrower’s financial situation, credit history, and income.

Technology can also help improve credit decision making 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 transaction and fraud data to train GPT-3 to recognize anomalies in transaction patterns, detect fraudulent activity, and flag anomalies.

Technology can assist in the detection and prevention of fraud by generating alerts and reports, and notifying relevant personnel of potential fraud.

The creator of GPT-3, OpenAI, is ranked by AI researchers as one of the top three AI labs in the world. The company received a multi-year, multi-billion dollar investment from Microsoft earlier this month, a deal that marked the third phase of the partnership between the two companies and followed previous investments by the tech giant in 2019 and 2021.

OpenAI’s AI chatbot, ChatGPT, went viral shortly after its launch on November 30, 2022, surpassing 1 million users in just five days.

Venture capital investment in generative AI, or algorithms that can be used to create original content, increased nearly 500% between 2020 and 2022 to $1.37 billion, Pitchbook data shows.

Generative AI Funding Rounds, Source: Pitchbook, December 2022

Generative AI Funding Rounds, Source: Pitchbook, December 2022

Featured image credit: freepik

Print friendly, PDF and email

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles