The following is a guest post by Shannon Flynn, Managing Editor at ReHack Magazine.
Chatbots have been slowly growing in fintech for years, but they’ve yet to reach their much-publicized potential fully.
The advent of ChatGPT could change that. Chatbots in banking could transform the industry as generative AI takes a step forward.
A 2019 study predicted that chatbots would manage 79% of successful interactions in banking customer service by 2023.
However, more recent data shows that just 23% of financial institutions in 2022 had plans to implement this technology.
Chatbots have come a long way since their inception, and consumers are used to dealing with them, but their adoption in finance has lagged. That was before ChatGPT.
What is ChatGPT?
ChatGPT is a publicly available chatbot developed by OpenAI and released in late 2022. The bot, which builds on GPT-3, the most prominent language model in the world, quickly gained notoriety for its ability to generate convincingly human text across various formats, from resumes to academic essays.
The chatbot reached 1 million daily users within just five days of its launch, a feat platforms like Facebook and Twitter took months, if not years, to achieve.
This spike in interactions has helped the deep learning model become even more accurate, coming closer to sounding like a real person. ChatGPT is now undoubtedly the best chatbot AI in use today.
How ChatGPT could impact chatbots in banking
ChatGPT’s success paints a promising picture of the future of chatbots in banking. Some financial institutions have already started experimenting with this bot, which could lead to broader AI chatbot investments.
Firms have found that ChatGPT can improve job descriptions in as little as five seconds, refining an organization’s language to be more transparent and readable.
This could help banks strengthen their recruiting efforts to work past ongoing labor challenges.
The best chatbot AIs like ChatGPT can generate code, not just natural language. Banks could use that to streamline app development to expand their fintech investments in less time.
Considering that 62% of digital leaders worry they’ll never have enough tech staff, the ability to use chatbots to generate code could prove a crucial advantage.
ChatGPT’s rapid rise to notoriety means more consumers are familiar with and even excited about talking with chatbots.
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That could lead to increased chatbots in banking as financial institutions learn they can implement these tools in customer service workflows without fear of disappointing users. This growth would let more banks provide around-the-clock service despite struggling to fill support roles with human workers.
Conversational interfaces like chatbots are an essential investment to stand out from competitors. That trend will likely grow as the underlying technology behind ChatGPT improves and becomes more accessible.
Now that GPT has revolutionized the chatbot experience, it’s clear that banks must capitalize on this technology if they hope to compete.
2023 Is the Year of the Chatbot in Banking
ChatGPT marks a turning point in conversational AI. Its rapid adoption proves this technology is ready for more extensive use, especially in customer-facing applications. As attention on the world’s best chatbot AI grows, the banking industry could finally significantly shift its attitudes toward the technology.
In light of these trends, 2023 will likely turn out to be the year of the chatbot in banking. AI chatbots are becoming more accurate, versatile, and accessible faster than many expected and could transform the fintech industry.
