There is huge excitement about the new smart toyartificial oils, but what it mainly does is produce on-demand content distilled from information gleaned from the internet.
So why do banks ban ChatGPT in their offices? America Corp. and Goldman Sachs Group joined JPMorgan Chase & Co. and told staff they must not use it for “professional purposes”.
Perhaps senior bankers think their juniors will become lazy. Compliance departments are most likely reeling from the risks involved, especially after being fined by regulators for bankers’ use of WhatsApp.
ChatGPT and other language models have been shown to make mistakes and get things wrong, or even invent non-existent fields of scientific research, for example.
“If a sell-side analyst research report turned out to have plausible but entirely fantastic sector developments that threaten or benefit a publicly traded company, I suppose it would look bad,” says Paul Davis, an analyst at Bloomberg .
“ChatGPT could also be used to write computer code. However, banks would be crazy to let him near their code. There would still be hurdles for banks that still have large parts of their systems built on proprietary coding languages that ChatGPT would have to learn.”
But beyond that, banking regulators and customers have an extremely low tolerance for failures in banking systems – transactions need to be confirmed and settled, payments need to be made, and businesses and people need access to their money. Banks need to be pretty sure that everything that happens on their computers is reliable and trustworthy.
One of the main selling points for traders, investment bankers and research analysts is its own intellectual content.
Companies pay them large sums of money to advise them on takeovers or capital raising because they know things about rival firms and the markets’ appetite for risk.
For similar reasons, investors pay banks to buy and sell assets or help them build tailor-made derivatives deals with a multitude of benefits.
Would you be willing to pay that much if you thought an internet-crawling robot was the one writing your business pitch?
