There has been a lot of discussion surrounding ChatGPT and its growing influence. ChatGPT, an artificial intelligence (AI)-powered chatbot, leverages extensive data to generate human-like text across a wide range of subjects. The capabilities of ChatGPT seem to be unlimited – the system can write Python code, create video scripts, and write songs in the style of Taylor Swift.
It’s already widely used to write posts for social networks, generate job descriptions, write email templates, and more. ChatGPT has been trained on a diverse array of topics, allowing it to provide information, answer questions, offer suggestions, and engage in creative or informative discussions.
In other words, ChatGPT is great to automate basic manual tasks and save your time. But is it a helpful tool for your compliance department? Not yet.
- One of the main disadvantages of ChatGPT is that it cannot serve as a reliable source of information. The technology is based on the information from the Internet of 2021. Considering the prevalence of misinformation on the internet, it is unwise to accept ChatGPT’s answers at face value without proper scrutiny. For instance, when you ask ChatGPT about credit unions and CRA, it says that credit unions are subject to the Credit Reinvestment Act. And the answer is completely wrong since CRA is only applied to banks.
- ChatGPT has faced criticism due to its tendency to generate text that appears plausible and convincing but may contain errors or nonsensical information. It’s important to note that ChatGPT does not provide references or citations for the information it generates. Therefore, relying solely on this chatbot for research purposes or as a standalone source of information is not ideal. For example, if you ask the chat to give an example of an enforcement action against a bank caused by their vendor, ChatGPT creates a fake story – it uses the enforcement action against Wells Fargo in 2016 but changes circumstances under which it happened. As a result, we have a fake story that sounds so real. So, we recommend using ChatGPT in conjunction with reliable and verified sources to ensure accuracy and credibility.
- While ChatGPT possesses the capability to comprehend natural language and generate relevant responses, it does have certain limitations. One such limitation is its inability to fully grasp the nuances of conversation, which can lead to misunderstandings or inadequate outcomes. This means that in certain situations where precise understanding and context are crucial, ChatGPT may fall short.
ChatGPT may appear knowledgeable about compliance matters and give you good-to-go ideas, but it’s crucial to exercise caution before accepting its responses as factual. Despite its proficiency in generating grammatically correct and seemingly authoritative answers, it is important to note that ChatGPT is designed to provide plausible responses rather than guaranteed factual accuracy.
So, ChatGPT is not ready yet to take over compliance at your financial institution today and definitely cannot replace modern compliance management solutions. The system lacks flexibility, knowledge, accurate data, and more features necessary to generate quality information for compliance management. Today it’s better to work with compliance experts and experienced risk and compliance software providers.