Alger: Chatting with the future

January 23, 2023

A piece written by Alger, a La Française partner firm. La Française AM Finance Services, in accordance with the terms of an agreement signed with Alger Management, Ltd, is a distributor of the Alger SICAV in Europe.

On November 30th, 2022, OpenAI launched an artificial intelligence (AI) chatbot prototype called Chat GPT that has surged in popularity. In fact, the platform garnered more than one million users within the first week of launch. Is this really the next “big thing” and how might this impact investors and the global economy?

What is Chat GPT?

GPT, or Generative Pretrained Transformer, is a type of large language model developed by OpenAI. It is trained on a vast amount of text data and can generate human-like text in response to a given prompt. GPT-3 is the latest version of this model and is capable of generating highly realistic and coherent text on a wide range of topics. Some people use GPT models for tasks such as language translation, summarization, and text generation. However, it is important to note that GPT models are not perfect and may produce errors or nonsensical text at times.

Why should businesses care about Chat GPT?

Chat GPT can help improve the efficiency and accuracy of natural language processing tasks, which can in turn improve a business’s bottom line. For example, a business could use GPT-3 to create a more accurate and efficient chatbot for customer service, which could handle more customer inquiries in less time and with fewer errors. Additionally, GPT-3’s ability to generate human-like text can be useful for creating more engaging and personalized experiences for customers, which can drive customer loyalty and potentially increase revenue.

The responses to the questions above actually came from Chat GPT via natural language processing technology. Could you tell? Even more amazing, the program can actually write code as well. Imagine the implications when software is routinely writing software. As the chart indicates, Chat GPT is quickly becoming a popular AI innovation, thanks to its deep roots in a neural network combined with training on a huge amount of data. We believe AI innovations like Chat GPT may significantly change how we utilize software in the future and how we work and live, helping us all to become more productive.