Limitations of ChatGPT

While ChatGPT is a powerful tool with a wide range of applications, it is essential to understand its limitations to set realistic expectations and use it effectively. When writing prompts for data-driven decisions, business leaders should consider the following points to navigate the limitations of ChatGPT:

a. Real-time data: ChatGPT's knowledge is based on the text data it has been trained on, with a cutoff in September 2021. It does not have access to real-time information or updates. [Note: this will change as users are given access to the ChatGPT with browsing feature that is currently in alpha.] When seeking data-driven insights, use reliable external sources to gather the latest data and provide this context in your prompt. For example, instead of asking, "What were the market trends in 2022?" you could ask, "Given the market trends observed in 2020 and 2021, how can we adapt our strategy to remain competitive in our industry?"

b. Quantitative analysis: ChatGPT is not designed to perform complex calculations or statistical analysis. When dealing with numerical data, it's better to rely on dedicated tools for data analysis, and then use ChatGPT for insights based on the results. For instance, after performing a data analysis on customer churn, you can ask ChatGPT, "Based on the findings that show a high customer churn rate in the first quarter, what strategies can we implement to improve customer retention?"

c. Verification of information: ChatGPT may occasionally generate responses that are plausible-sounding but inaccurate or outdated. When using the model for data-driven decisions, always cross-check the information provided by ChatGPT with reliable sources to ensure accuracy. If you notice inconsistencies in the response, you can refine your prompt to request more specific or up-to-date information.

d. Ambiguity and uncertainty: In some cases, ChatGPT may provide vague or overly general responses, especially when dealing with ambiguous or uncertain situations. To minimize this limitation, make your prompts as specific and clear as possible, and feel free to ask follow-up questions for clarification or further details.

e. Iterative questioning: If the initial response from ChatGPT does not fully address your query or seems off, don't hesitate to ask follow-up questions or rephrase your prompt to obtain the desired insights. This iterative process can help you refine the AI-generated response and ultimately provide more valuable input for data-driven decision-making.