ChatGPT: Revolutionizing Business Interactions

1. CHATGPT Revolutionizing Business Interactions © Operational Excellence Consulting. All rights reserved.

2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Understand the key concepts, principles, technology and capabilities of ChatGPT Understand the benefits and potential applications of ChatGPT Understand the considerations and best practices for implementing ChatGPT in an organization 2 © Operational Excellence Consulting

3. CONTENTS 02 03 04 01 INTRODUCTION TO CHATGPT CAPABILITIES & POTENTIAL OF CHATGPT IMPLEMENTATION & BEST PRACTICES FUTURE OF CHATGPT 3 © Operational Excellence Consulting

4. 62% Of consumers would prefer to use a customer service bot rather than wait for human agents to answer their requests. 4 Source: Tidio © Operational Excellence Consulting

5. 1.4 B People are using messaging applications and are eager to communicate with chatbots. 5 Source: Acquire © Operational Excellence Consulting

6. BRIEF HISTORY OF CHATBOTS & AI CHATBOTS Large language models like OpenAI’s GPT-3 and its derivatives, including ChatGPT, have demonstrated remarkable natural language processing capabilities, pushing the boundaries of AI chatbots even further. Advanced AI-powered chatbots and virtual assistants, such as Facebook’s M and Google Assistant, were introduced. Apple's Siri and Amazon's Alexa paved the way for the widespread use of AI- powered personal assistants. The first AI-powered customer service chatbots were introduced. ALICE, a conversational chatbot, was developed. Throughout this history, chatbots and AI chatbots have continued to evolve, with the goal of making human-like conversation with computers a reality. The creation of ELIZA, an early chatbot developed by computer scientist Joseph Weizenbaum. 1960’s 1990’s 2000’s 2010’s 2020’s 6 © Operational Excellence Consulting

7. CHATGPT: THE ARRIVAL OF A POTENTIALLY DISRUPTIVE AI TOOL “ ChatGPT is, quite simply, the best artificial intelligence chatbot ever released to the general public. ” The New York Times December 05, 2022 7 © Operational Excellence Consulting

8. “ many office jobs more efficient by helping to write invoices or letters. This will change our world. Until now, artificial intelligence could read and write, but could not understand the content. The new programs like ChatGPT will make BILL GATES 8 © Operational Excellence Consulting

9. DEFINITION OF CHATGPT ChatGPT (Generative Pretrained Transformer) is an AI-powered language model developed by OpenAI that uses deep learning to generate human-like responses to text-based prompts. It can generate text for a wide range of tasks, including language translation, summarization, question answering, and conversation generation. It was trained on a massive corpus of text data, which allows it to generate responses that are highly contextually relevant and natural sounding. 9 © Operational Excellence Consulting

10. CHATGPT CAN BE A VALUABLE TOOL AS PART OF AN ORGANIZATIONAL DIGITAL TRANSFORMATION It’s important to keep in mind that ChatGPT should be seen as one tool among many, and should be integrated with other technologies and approaches to drive a comprehensive digital transformation. 10 © Operational Excellence Consulting

11. BENEFITS OF USING CHATGPT INCREASED EFFICIENCY COST SAVINGS IMPROVED CUSTOMER EXPERIENCE ChatGPT can automate routine and repetitive tasks, freeing up valuable time for human agents to focus on more complex and higher-value tasks. Automation through ChatGPT can help reduce operational costs and improve the cost-effectiveness of customer service and support. ChatGPT provides a seamless, personalized, and conversational experience for customers, which can lead to increased customer satisfaction and loyalty. 24/7 AVAILABILITY IMPROVED ACCURACY SCALABILITY ChatGPT can operate continuously, providing customers with immediate support and information whenever they need it, regardless of time and location. ChatGPT can handle large amounts of data and provide accurate and consistent responses, reducing the chances of errors and misunderstandings. ChatGPT can handle a large volume of customer interactions simultaneously, making it suitable for organizations with growing customer demands. 11 © Operational Excellence Consulting

12. HOW DOES CHATGPT WORK? ChatGPT’s ability to generate human-like responses is based on the massive amount of data it has been trained on, as well as the powerful deep learning and NLP techniques used in its implementation. 12 © Operational Excellence Consulting

13. KEY CONCEPTS & PRINCIPLES OF CHATGPT Pretraining Transformer Architecture Generative Model Natural Language Processing (NLP) Attention Mechanism ChatGPT is trained on a large corpus of text data, allowing it to learn the patterns and relationships between words and phrases. This pretraining allows it to generate text that is both relevant and coherent. ChatGPT is a generative model, which means it is able to generate new text based on the input it receives. This is achieved through the use of a decoder that is trained to predict the next word in a sentence given the previous words. ChatGPT uses NLP techniques such as part-of- speech tagging, dependency parsing, and entity recognition to understand the meaning of user inputs and generate responses that are semantically and syntactically correct. The transformer architecture includes an attention mechanism, which allows ChatGPT to selectively focus on different parts of an input text when generating its response. This allows it to generate more nuanced and accurate responses. ChatGPT uses the transformer architecture. This architecture allows ChatGPT to process text inputs in a parallel manner, which makes it much faster than other models. 13 © Operational Excellence Consulting

14. OVERVIEW OF THE TECHNOLOGY BEHIND CHATGPT TECHNOLOGY TRAINING DEPLOYMENT The training process involves feeding the model with a large corpus of text data, where the model learns patterns in the data and builds representations of the language it is trained on. ChatGPT is a language model developed by OpenAI. It is based on the transformer architecture and is trained using a massive amount of text data to generate human- like text responses to various inputs. During deployment, the model is given an input, such as a prompt or question, and it generates a text response based on its training. The response is generated using a combination of deterministic and probabilistic processes, to maximize the likelihood of a good response. 14 © Operational Excellence Consulting

15. WILL CHATGPT MAKE SEARCH ENGINES OBSOLETE? AI chatbots like ChatGPT are not capable of replacing the comprehensive and diverse information that search engines like Google provide. Both AI chatbots and search engines serve different purposes and complement each other in providing information and support to users. 15 © Operational Excellence Consulting

16. HOW TO USE CHATGPT 1. 4. Using ChatGPT is very straightforward. It really is as easy as having a text conversation with a friend. Once you are loaded in, click on “+ New chat” at the top left to begin a new conversation with ChatGPT. 2. 5. First, you will need to go to chat.openai.com and create an account. Ask ChatGPT a question in the search bar. Familiarize yourself with how the program responds to your questions. 3. 6. After that, you can use ChatGPT for free. Your conversations with ChatGPT will be saved so you can go back and see how ChatGPT responded to questions from previous sessions. 16 © Operational Excellence Consulting

17. USEFUL TIPS TO PROMPT CHATGPT TO PROVIDE HIGHLY ACCURATE RESPONSES Provide clear and concise questions Provide complete and accurate context Use proper spelling and grammar Ask clear, concise and specific questions that are easy for ChatGPT to understand and respond to. Give ChatGPT enough context to provide a more accurate response. The more information you provide, the more accurate the response will be. Correct spelling and grammar help ChatGPT understand the context and provide a more accurate response. Provide relevant data and examples Be patient ChatGPT is trained on a large amount of data and can take some time to process and respond to complex questions. Be patient and allow the model sufficient time to provide an accurate response. Provide relevant data and examples that support your question to help ChatGPT better understand what you're asking. 17 © Operational Excellence Consulting

18. APPLICATIONS OF CHATGPT CUSTOMER SERVICE & SUPPORT MARKETING & SALES HEALTHCARE ChatGPT can be used to engage with potential customers, qualify leads, and personalize marketing efforts. ChatGPT can be used to provide medical information, triage symptoms, and schedule appointments. ChatGPT can be used to provide 24/7 assistance to customers, answer questions and resolve issues quickly. 18 © Operational Excellence Consulting

19. CHATGPT CAN BE APPLIED IN THE MARKETING FUNNEL TO IMPROVE CUSTOMER ENGAGEMENT AND ENHANCE LEAD GENERATION AWARENESS ChatGPT can be used to provide instant and personalized responses to customer inquiries and queries through website chatbots, social media, and other online channels. INTEREST ChatGPT can be used to create interactive and engaging content such as quizzes, surveys, and product recommendations to help customers identify their needs and interests. Awareness Interest DESIRE ChatGPT can be used to provide customized and persuasive product information, pricing, and purchasing options, helping customers make informed decisions. Desire ACTION ChatGPT can be used to support customers through the purchasing process, from product selection to checkout, through personalized and conversational interactions. Action 19 © Operational Excellence Consulting

20. USE CASES OF CHATGPT IN CUSTOMER SERVICE & SUPPORT Customer Inquiries And Support Live Chat And Virtual Assistant Customer Feedback And Sentiment Analysis Chatbots For Self-service ChatGPT can be used to create chatbots that allow customers to resolve issues on their own, without the need for human assistance. ChatGPT can answer FAQs, provide information on products and services, and help resolve customer issues. ChatGPT can provide instant and personalized support to customers via live chat, acting as a virtual assistant. ChatGPT can gather and analyze customer feedback to identify common issues, measure satisfaction, and improve CX. Routing And Escalation Personalized Recommendations Customer Retention And Engagement Customer Analytics And Reporting ChatGPT can be used to route customer inquiries to the appropriate support agent or escalate complex issues to higher-level support. ChatGPT can analyze customer data and provide personalized product recommendations or upsell opportunities. ChatGPT can be used to engage with customers, increase brand loyalty, and reduce customer churn. ChatGPT can provide insights into customer behavior, preferences, etc. for customer service improvement. 20 © Operational Excellence Consulting

21. USE CASES OF CHATGPT IN E-COMMERCE Virtual Customer Service Chat-based Shopping Assistance Personalized Product Recommendations ChatGPT can be used to provide 24/7 customer support, answering frequently asked questions and resolving customer inquiries. ChatGPT can be integrated with e-commerce websites to provide users with real-time assistance in searching for products, and making purchases. ChatGPT can use customer data to make personalized product recommendations based on their purchase history, preferences, and current shopping behavior. Order Tracking and Management Customer Feedback and Surveys Fraud Detection and Prevention ChatGPT can assist in detecting and preventing fraud by using advanced analytics and machine learning algorithms to analyze customer behavior and transaction data. ChatGPT can provide customers with real-time updates on their order status and help them manage their orders through a chat interface. ChatGPT can be used to gather customer feedback and conduct surveys to improve the overall e- commerce experience. 21 © Operational Excellence Consulting

22. STEPS FOR IMPLEMENTATION Plan and Design the ChatGPT System Train and Deploy the ChatGPT System Maintain and Update the ChatGPT System Assess and Define Requirements 7 1 2 3 4 5 6 Evaluate and Select a ChatGPT Platform Set Up and Test the ChatGPT System Monitor and Optimize the ChatGPT System 22 © Operational Excellence Consulting

23. ETHICAL AND PRIVACY CONCERNS Data Privacy Bias Transparency Misleading Information Job Loss ChatGPT is trained on large amounts of data, and it is important to ensure that personal and sensitive information is protected and not used for malicious purposes. The decision-making processes of ChatGPT can be difficult to understand, making it challenging to explain why a certain response was generated. This can raise concerns around accountability and fairness. ChatGPT can automate certain tasks that are currently performed by humans, which can lead to job loss. Organizations should consider the social impact of automation and plan for reskilling and workforce development. ChatGPT can be trained on biased data, which can lead to discriminatory or unfair responses. It is important to be aware of this and take steps to mitigate bias during the training process. ChatGPT can generate responses based on the data it was trained on, which may not always be accurate. It is important to ensure that the information provided by ChatGPT is reliable and trustworthy. 23 © Operational Excellence Consulting

24. MARKET POTENTIAL AND GROWTH TRENDS Growing Adoption Increasing Demand for Automation Market Size Competitive Landscape Investment & Innovation ChatGPT is gaining widespread adoption across various industries, such as customer service, healthcare, retail, and finance, due to its ability to improve operational efficiency, enhance customer experience, and reduce costs. The global ChatGPT market size is estimated to reach $10 billion by 2025, growing at a compound annual growth rate (CAGR) of approximately 28% between 2020 and 2025. The ChatGPT market is becoming increasingly competitive, with the entry of new players and the expansion of existing companies into the space. This is leading to increased innovation and new developments in the ChatGPT market. The growth of ChatGPT is being driven by investments and innovations from technology companies and venture capital firms, who are developing new features and functionalities to improve ChatGPT capabilities. With the growing demand for automation and the need for more efficient and effective customer service, ChatGPT is becoming a popular solution for businesses looking to streamline their processes and improve customer engagement. 24 © Operational Excellence Consulting

25. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting