BOSS Accounting Outsourcing Highlights Important Limitations of ChatGPT to be Aware of

While ChatGPT can be a powerful tool that can save firms time, this article highlights five limitations that ChatGPT firms should know about first.

Let’s dive into those five weaknesses.

1. Precision and Dependability

ChatGPT is not always accurate or reliable; think of it as a new team member that can make mistakes.

It reflects human bias in two ways: first, its training data may contain biases, leading to inaccuracies. Second, human evaluators influenced the model’s development, further introducing bias.

Therefore, approach ChatGPT’s outputs with caution. Always verify facts independently and use your professional judgement to assess the validity of its responses.

2. Confidentiality and Privacy

A key consideration for professionals is confidentiality and privacy. When setting up your ChatGPT account, it’s important not to share personal information or client details because the model learns from interactions.

In March 2023, a software bug exposed some users’ conversations to others, risking unauthorised access to any private information shared.

Both ChatGPT and OpenAI strongly advise against including confidential data in chats.

3. Mathematical Constraints

The third limitation, particularly significant for accountants and bookkeepers, is ChatGPT’s mathematical capabilities. While it excels in language processing, it can make errors in complex calculations despite having basic knowledge of numbers. However, with ChatGPT 4’s new plug-ins, users can now integrate mathematics more accurately in their interactions.

4. Hallucination

The fourth aspect is particularly intriguing. ChatGPT encounters what is known as hallucination, which describes its tendency to assertively deliver inaccurate information.

Essentially, when ChatGPT lacks certainty regarding a specific answer, it frequently generates an invented response. This creation can prove to be strikingly convincing.

This occurrence underscores the vital importance of verifying information and utilising your own knowledge in such circumstances.

5. Outdated Information

The fifth point is crucial: ChatGPT lacks up-to-date information. Launched in November 2022, it only includes data up to September 2021, making it impractical for real-time inquiries like TV schedules or recent lottery results.

For professionals like accountants, using it for tax-related matters can be risky due to annual changes in tax laws, which may not be reflected in the system. This raises accuracy concerns, especially with its limited mathematical abilities and potential misinformation, often called hallucinations.

However, with updates in ChatGPT 4, it now includes browsing capabilities, enabling access to real-time information beyond its original dataset.

Conclusion: The Pros and Cons of ChatGPT

ChatGPT is a valuable resource, but it has drawbacks, such as inconsistent accuracy, potential reliability issues, outdated information, and difficulty with maths tasks. Still, it can save you time and simplify tasks.

Use it as an assistant, not a replacement for your expertise, and always verify crucial details, especially for important matters like tax calculations. Avoid sharing sensitive or personal information in your conversations.

Here’s what Lee Court from BOSS accounting outsourcing Australia says about ChatGPT, “We’re not saying don’t utilise new technologies, like outsourcing they can be the way for the future, we’re just saying make sure you know the cons before delving in to safeguard your firm from any unnecessary headaches.”

About BOSS, BACK OFFICE SHARED SERVICES PTY LTD

BOSS (Back Office Shared Services Pty Ltd) was founded in 2004 to provide skilled accountants and bookkeepers on a full-time, part-time and casual basis to commercial enterprises, accounting and financial services firms in Australia.

BOSS India is a subsidiary of BOSS Australia and runs just like an ultra-modern paperless Australian public practice because the Director and Accountancy Practice Principal, Peter Vickers, has been operating his own successful Australian public practice for over twenty years.