ChatGPT into Business Operations: Pros and Cons

• Blockchain Council
• January 25, 2025

ChatGPT, designed by OpenAI, has become a popular tool for improving how businesses run. Its ability to handle language tasks brings plenty of benefits, but it also comes with some challenges. Let’s take a closer look at the good and the not-so-good sides of using ChatGPT for business tasks.

What is ChatGPT?

ChatGPT is an advanced AI tool designed to understand and generate human-like text. Built on a technology called a “language model,” it uses vast amounts of data to predict and produce responses that feel natural in conversation. It can carry out a wide range of tasks, such as answering questions, drafting emails, creating detailed reports, or even engaging in creative writing.

Advantages of ChatGPT in Businesses

Round-the-Clock Customer Support

ChatGPT can handle customer service inquiries at any hour of the day, making it a reliable support system. It addresses multiple queries at once, reducing wait times and keeping customers satisfied. For example, Radfield Home Care incorporated ChatGPT to handle everyday questions from clients. This allowed their team to concentrate on more detailed and complicated concerns.

Smoother Daily Tasks

By taking over repetitive duties, ChatGPT helps businesses focus on activities that demand more creativity or strategy. It drafts emails, creates detailed reports, organizes meetings, and even handles minor office tasks, which might otherwise consume a significant amount of time. OpenAI’s “Operator” feature showcases this efficiency by handling errands such as expense tracking or ordering supplies.

Significant Cost Savings

Replacing manual handling of customer interactions with ChatGPT helps businesses reduce expenses. With this tool, they can manage larger volumes of interactions without needing to hire additional staff. This ensures operational growth without a proportional increase in labor costs, helping companies allocate resources where they’re most needed.

Tailored Customer Experiences

ChatGPT can analyze customer data to recommend products or services that suit their preferences. This leads to more meaningful interactions and stronger connections with customers. For example, by understanding what a shopper prefers, businesses can send recommendations or promotions that align with their needs, which often results in better sales performance. The Certified ChatGPT Expert certification is crucial for tailoring ChatGPT to meet organizational needs.

Challenges of ChatGPT in Businesses

Errors and Misinformation

ChatGPT, despite its strengths, isn’t always accurate. Occasionally, it provides responses that are wrong or confusing. For instance, during a recent technical issue, users faced errors that interrupted workflows, showing how reliability can sometimes be unpredictable.

Lack of Emotional Awareness

One major limitation is ChatGPT’s inability to detect or respond to human emotions. In delicate situations, it might provide answers that feel out of touch or even offensive. This can create misunderstandings with customers, potentially harming the relationship if not managed correctly.

Data Security Risks

Using ChatGPT often involves dealing with sensitive customer information, which raises privacy concerns. Businesses must ensure that the tool complies with regulations and protects all stored or processed data. Mishandling this responsibility could lead to a loss of trust from customers and even legal issues.

Dependence on Automation

Although automation simplifies many tasks, too much reliance on ChatGPT might reduce oversight. Without enough human input, businesses risk missing personal interactions with customers or overlooking subtle errors that could escalate if not addressed. Striking the right balance is critical for long-term success.

Recent Developments with ChatGPT

Innovations in the Tool

OpenAI is continually improving ChatGPT to make it more capable of handling various tasks. For instance, the “Operator” feature has been upgraded to handle tasks such as booking tables or transferring data for companies. However, as these tools become more sophisticated, businesses face challenges like integrating them with existing systems or ensuring ethical use.

In financial services, for example, BBVA’s introduction of ChatGPT Enterprise licenses resulted in measurable productivity gains. Employees built over 2,900 specialized tools, saving each person over two hours of work every week. While these outcomes are promising, ensuring the tool works seamlessly with more complex internal systems is still a work in progress.

Collaborations for Growth

OpenAI has teamed up with major industry players like Oracle and SoftBank to push forward with AI infrastructure. Through projects such as Stargate, billions of dollars are being invested in advancing AI systems, creating jobs, and making AI solutions more widely available for businesses of all sizes.

Competitive Market Developments

The AI assistant market is becoming more crowded, with new players introducing innovative tools. For instance, a company named Perplexity recently launched an assistant for Android devices. It can handle bookings, set reminders, and assist with daily tasks, presenting a direct challenge to existing tools like ChatGPT. As competition increases, companies must evaluate which solutions align best with their goals.

Conclusion

Using ChatGPT comes with both rewards and risks. On the positive side, it delivers consistent customer support, automates repetitive work, saves money, and improves customer engagement through personalized suggestions.

But businesses must stay cautious about the tool’s limitations. Accuracy problems, lack of emotional understanding, privacy concerns, and potential overuse are all significant considerations. Relying too heavily on automation could lead to mistakes slipping through or missing the human touch in customer relations.

By keeping up with new advancements and carefully managing these concerns, businesses can maximize the benefits ChatGPT offers while reducing its downsides. Doing so ensures it becomes a valuable part of operations rather than a source of frustration.