FEATURE
What is ChatGPT and why should brands and retailers take note ?
Terence Ng is currently a Senior Analyst in Coresight Research , focusing on research related to B2B and B2C surveys , US retail technology startups , the Metaverse and Chinese consumers . Prior to joining Coresight , Terence worked in international research agencies such as Nielsen and Ipsos , HK retail conglomerate AS Watson Group and the HKSAR Government assisting in the Ocean Park Rethink initiative .
ChatGPT , also known as Chat Generative Pre-trained Transformer , is a large language model launched by OpenAI in November 2022 . Different from the usual chatbot which is normally based on specific datasets , ChatGPT is based on an extensive amount of information and is able to answer questions , carry out conversations in a human-like manner , and provide users with personalized recommendations .
websites , social media accounts , and messaging apps to provide customers with instant and accurate responses to their queries . Companies such as Snap and Instacart have already incorporated ChatGPT API into their solutions . This can reduce response times , improve customer satisfaction , and ultimately increased sales among brands and retailers . After all , ChatGPT can also provide 24 / 7 customer support service – something humans will struggle with .
Furthermore , ChatGPT can be used to collect data on customer preferences , behaviors , and pain points . This data can be analyzed to improve product offerings , marketing strategies , and customer service . Ultimately , ChatGPT can help brands and retailers better provide personalized recommendations to customers based on their browsing and purchase history .
Take Vietnam as an example , even though ChatGPT has not been disbursed in the country , dozens of Facebook groups that pertain to the OpenAI platform have been set up in Vietnam , with one of the Facebook groups having 79,000 members . Sonny Dang , manager of one of these Facebook groups , said ChatGPT ’ s ability to save time , ease of use and people ’ s fear of missing out have fuelled interest in ChatGPT .
With the advanced characteristics that ChatGPT carries , different technology and e-commerce companies , such as Google , Amazon and Alibaba attempting to invent their own version of ChatGPT in order to compete for more users . For Alibaba ’ s case , it is more about suiting the local needs of Chinese consumers , as ChatGPT is currently banned in China .
There are also not surprisingly multiple benefits that ChatGPT brings to brands and retailers , and giants such as Walmart , Coca Cola and Carrefour have announced plans earlier to experiment with ChatGPT . Firstly , ChatGPT can help brands and retailers save costs and improve efficiency , as fewer customers service staff are required for performing mundane tasks . It is also makes content generation quicker , through ChatGPT leveraging machine learning algorithms that it is equipped with . In fact , the replacement of human staff is already happening in the US – according to Resume Builder , almost half of US companies using ChatGPT have replaced workers with AI chatbot since its launch .
Secondly , brands and retailers should take note of ChatGPT because it can be used to improve customer experience and loyalty . With the rise of e-commerce and digital communication , ChatGPT can be integrated into
That said , there are certain limitations that ChatGPT currently possess , in which brands and retailers must be cautious of . Firstly , it lacks human touch and does not possess the full communicative and linguistic capabilities of humans , meaning ChatGPT may not be suitable for all customers .
Secondly , the performance of ChatGPT is highly dependent upon the sufficiency and quality of training data it is fed on . This means without recent and human feedback to constantly maintain quality of training data , the performance of ChatGPT will be greatly compromised .
Thirdly , for businesses , there is risk of disclosing proprietary or confidential information to either the public or competitors if information is misfed into ChatGPT . This is why certain companies , such as Walmart , are asking employees to refrain from feeding sensitive information when using ChatGPT to avoid chaos from occurring .
In summary , despite numerous announcements regarding how hot topic ChatGPT is and how many companies are experimenting with ChatGPT , ChatGPT is still at an early stage of development and it is not time to pour in massive amounts of money yet . However , it is a good time to nevertheless trial the technology , and watch out what the competition is doing regarding ChatGPT or its alternative technologies . With adequate caution and recognition of ChatGPT ’ s benefits , companies will be able to use to its advantage to beat competition , ultimately saving operation costs and providing better experience to customers .
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