5 Things Open AI's ChatGPT Cannot Resolve in The Financial Sector
OpenAI’s ChatGPT and now GPT-4 are creating a buzz in the industry. However, there are still several problems in the financial sector that these innovations cannot resolve. Here are the five things that ChatGPT/GPT-4 cannot solve in the financial sector:
1. Compliance with legal requirements
Financial institutions (FIs) are responsible for safeguarding their customers' assets and complying with legal requirements like KYC and AML regulations. ChatGPT/GPT-4 are not yet equipped to meet these basic requirements as monetary products come with a lot of risks.
2. Consistency in financial services
Consistency is a crucial aspect of any monetary service business. Organizations need experts to evaluate evolving standards, determine strategies, and direct the compliance program to ensure that they meet those requirements. Although AI can help with monitoring suspicious activity, human insight is needed to decide which data to use and the policies to guide such decisions.
3. Credit underwriting policies
To determine the appropriate credit thresholds for a company, FIs must evaluate their risk priorities carefully. Data analysis can be useful, but human knowledge is necessary in choosing the right policies to use to guide what data to use in making those decisions.
4. Account opening process and post-account opening issues
Customers expect a streamlined account opening process that should be completed in less than ten minutes. While FIs use things like telephone-based identity checks and report verification, clients also desire a more immersive experience when resolving issues post-account opening. However, suppose a client suspects they might have been the victim of a social engineering trick. In that case, they expect to interact with a bank representative directly to report the issue.
5. Creation of new financial products
Creating new financial products requires a thorough understanding of market trends, customer requirements, and the regulatory environment. Additionally, it requires strategic decisions that go beyond what data alone can reveal. While ChatGPT/GPT-4 can provide data analysis-based insights and recommendations, a human designer's creativity and intuition cannot be substituted.
In conclusion, although ChatGPT/GPT-4 can be of assistance in the financial sector, they cannot yet replace human expertise in resolving complex issues that require intuition, creativity, and strategic decisions. Companies need to use both AI solutions and expert human teams to stay ahead in the industry.
