What: ChatGPT could be a game changer for chatbots and customers’ request management, but it is too early?

Why it is important: There are as many risks associated to using ChatGTP now as there are benefits for retailers. This is a cruel dilemma: try now, take risks, but be prepared for the future, or wait, enter the game late and face a prepared competition and higher costs of implementation.

Companies have long sought automated solutions that can match or surpass human customer service, but chatbots have often been seen as clunky and unhelpful.

For this reason, businesses are excited about the potential of ChatGPT, a new artificial-intelligence technology from OpenAI, to turn ordinary chatbots into impressive sources of information, potentially transforming customer service. To achieve that, OpenAI is planning to add ChatGPT to its application programming interface, allowing developers to embed the technology into their own products.

However, many executives are proceeding with caution due to limitations in ChatGPT and OpenAI's older AI language system, GPT-3. Executives warn that overreliance on such AI models could lead to companies providing incorrect information to customers. They also note that while many chatbots are trained to say "I don't know" when they can't compute a request, ChatGPT is more likely to provide a response with confidence, even if it's incorrect.

OpenAI's CEO has advised against relying on ChatGPT for important tasks at the moment. ChatGPT is unique in its ability to provide reasonable answers to most prompts, regardless of users' spelling and grammar, and to respond in full, natural-sounding sentences without scripting. However, companies should exercise caution when using the technology, as it's still early days for deployment of mission-critical systems based on ChatGPT.

Some companies are using AI to write chatbot responses in sensitive situations, but this has backfired in the past. Sports brand Fanatics plans to use a customer-service chatbot fueled in part by GPT-3 when it launches an online sports-gambling division this year, but is testing the chatbot carefully to avoid risks, especially reputational ones.

Companies tap Chat GPT to make their chatbots smarter