The ChatGPT Revolution: Transforming the Financial Landscape

0:00ChatGPT is incredibly powerful and today I want to talk about some areas in finance that ChatGPTGPT is going to absolutely disrupt and if not specifically chatGPTGPT is aIe models like it and this kind of AI generative AI technology in general. So the first area that I see some massive opportunities for disruption is in the field of investment analysis. So traditionally, investment analysis has been a job for super high skilled analysts who spend hours pouring over data and market trends to really determine the best investment opportunities. and with tools like chat GPT and other AI tools I think this job can now be very effectively automated essentially by giving different AIs tools to look at all of the different data all different market trends you're able to then get you're able to then ask it questions based off of that data and get responses in a much faster way without having to worry about building out elaborate spreadsheets and forecasting models.

1:02And you're able to pretty much get to conclusions faster and test hypotheses faster. So I think this is going to be a really powerful tool there. And I think this opportunity or this technology really is going to level the playing field for investors and give everyone kind of access to the same information and the same opportunities, assuming people use this correctly. Another area that I see as being very big for disruption is accounting. So accounting is a task that is really, honestly, it's just often seen as a very tedious and time consuming task. And I think that there's going to be a lot of AI models that come out and tackle this.

1:39Now, ChatGPT in its current form, I wouldn't necessarily trust this to do my accounting as we all know it kind of has some basic problems with math and other things. But I do believe that this is not a problem that is far off in the future. people are 100 % going to be able to train very competent very powerful AI models in this specific area and perhaps it will be chat GPT itself integrating some of these technologies in and if you really think about it being able to automate accounting tasks right like you give it all of your receipts all of your financial documents all of your invoices and it'll perhaps ask you a couple questions based on that and boom it's going to come out with all of your taxes all of your accounting, I think this is going to be incredibly powerful using AI to automate all of this.

2:26So TurboTax, if you're listening, you might want to get started integrating some of this into your system. Another area that I really think ChatGPT has a big opportunity to disrupt in finance is risk management. So risk management is essentially a part of any financial institution, and it requires skilled professionals to identify potential risks and develop strategies to mitigate those. So with ChatGPT, this task can now be automated to a pretty good, for a decent level. ChatGPT essentially can just analyze vast amounts of data and identify potential risks, allowing financial institutions to develop strategies to manage those risks more effectively.

3:03Now, people are saying, hey, like, as if some big, huge financial firm is going to go on ChatGPT and run through all of their data. Yeah, I don't think it's necessarily the front-end ChatGPT that people are using, but when you're using API access to perhaps other open AI models or other ones specifically developed for this, whether it's ChatGPT or something similar, I think that the same technology that is used to build this is going to be used to develop this really complex risk management solutions. So another area that I see ChatGPT having a very significant impact is in fraud detection for a lot of the same reasons as risk management.

3:44And I think essentially you're going to be able to upload a lot of data to this thing and you know you're going to be getting it to do what typically requires a really skilled professional that identifies fraudulent activity and chat gpt is going to be able to look at all of the activity all of the data that you might give it and you'll be able to ask it or query it you know what in this is you know looks suspicious looks fraudulent and it's going to be able to give people a pretty good answer to that so I think overall, this will be big for fraud protection. And I think that it's going to be something that is integrated, whether we know it or not, right?

4:20This might not be something that a lot of people know their financial institutions are implementing, but I think in the financial area, this will be pretty big. In addition, I think that Chachupiti is going to be pretty big at disrupting the banking industry. So I think banking services, a lot of them can be automated, and this is going to make banking a lot more accessible to everyone. Now, I know a lot of people are going to think this sounds pretty controversial, but essentially imagine a chatbot for banking that you can ask it to transfer funds and do a bunch of different things that are normally complicated tasks, transferring money, paying bills, checking your account balances, and having that sort of chatbot integrated perhaps onto your phone or some other authorized device that requires two-factor authentication to really prove it to you, and being able to get really dynamic, quick results for people.

5:10I think that personal banking would be, this would be a very good use for it. However, obviously there needs to be a very high level of security to make sure that this isn't misused and that to make sure that it's a really seamless experience for customers. So another area that I think this is going to impact in finance is in the field of insurance. So insurance companies, they deal with a massive amount of data and paperwork. And I personally have talked to someone that is the lead at a major insurance company here in America. And he's telling me all of the different ways that they're currently using AI to really automate a lot of the tasks that they're doing, a lot of the data they're doing.

5:50And he's, well, you know, it's kind of interesting talking to him, he was saying that one of the big areas they're actually worried about is there's a lot of laws, specifically California just passed one, that make it a little bit more difficult because they're essentially saying that insurance companies can't make decisions based off of algorithms. Now, you can imagine why places like California have passed these laws. Essentially, algorithms are going to disproportionately be biased against lower income places. And so whether that's, you know, obviously, that would perhaps be better for the bottom line of an insurance company.

6:22But some people think that that's, you know, some sort of bias or discrimination. So those are kind of problems that have to be played out in the insurance industry but overall i think that these chat gpt technologies are going to be incredibly powerful um you know you'll be able to feed it a whole host of data on uh case and it will be able to very quickly assess insurance claims i think it'll be able to reduce waiting times it's going to be able to automate a lot of the processes that these insurance companies run through um they're typically really tedious and time consuming now i think the biggest concern when it comes to chat gpt and these other ai technologies being integrated into finance is just the security and privacy aspect when you're looking at data around chat gbt um you know i've talked to someone that works at a very big insurance company in this in america in charge of uh ai and he said you know they've instructed all of their people not to use ai and not to put any people's uh you know obviously confidential information in there for obvious reasons because the ai once it learns something it can use that and generate it and spit it out or um you know people that are manually reviewing this might be able to see that data so obviously it's really important to keep that data safe however i don't think that it's far off to say that you know these insurance companies are big financial institutions wouldn't be able to partner and make special um you know essentially special deals where they are able to put their data in and not have it used and have it you know encrypted and safe so i think there's gonna be some massive opportunities in the finance space for disruption because of chat gpt and these other technologies but at the same time I think we definitely do need to be very cautious about the data that is being used, the algorithms that are being generated, and all of that area.

8:00And I think there will be a lot of regulatory work done in this area, but I still see some massive opportunities for innovation and disruption.