7 Ways To Use ChatGPT for Finance

ChatGPT is a highly versatile and powerful tool. It has revolutionized different sectors spanning from marketing to customer service, content creation, e-commerce, and research and development. OpenAI launched ChatGPT in 2022 and it has already amassed more than 100 million users, a testament to its usefulness.

In a very short time, ChatGPT has evolved into an integral tool in the finance sector, helping stakeholders generate reports, create visualizations, analyze data, provide customer service, build question-answering chatbots, and much more. While it's not perfect, ChatGPT is facilitating increased productivity through the automation of repetitive and monotonous tasks, which allows individuals to focus more on core activities.

That said, the financial sector is a deeply sensitive field requiring decision-making based on accurate and real-time data. Human oversight is required to review and fact-check all AI-generated outputs to ensure they are helpful for the use case.

In this article, we explore ways you can harness the power of ChatGPT in finance.

Table of contents:

• Understanding ChatGPT
• Using ChatGPT for finance
• Integrating ChatGPT into finance tasks
• AI challenges and considerations

Understanding ChatGPT

ChatGPT is an AI chatbot that uses machine learning algorithms, deep learning models, and neural networks to process text inputs and respond in a conversational manner. At the heart of ChatGPT, you’ll find GPT (generative pretrained transformer) models.

With natural language processing technology, ChatGPT processes natural language and generates relevant and meaningful responses. ChatGPT also supports contextual understanding, meaning it can keep track of previous interactions with the user and utilize these details in future responses, leading to a more natural conversational experience.

Behind the scenes, ChatGPT uses the tokenization technique to break down text inputs to process and interpret them more accurately. ChatGPT relies on preexisting datasets of publicly available information to produce coherent narratives. With its contextual understanding and interpretation, ChatGPT supports multi-turn conversations with real-time responses.

‍OpenAI offers an API to integrate ChatGPT functionalities into your applications. These underlying models can be trained using custom knowledge bases to provide more tailored and accurate responses.

Using ChatGPT for finance

From data analysis to forecasting financial trends, here are some benefits of using ChatGPT for finance.

How to use ChatGPT for finance:

1. Basic data analysis and drawing insights
2. Automated customer interaction and support
3. Compliance and risk management assistance
4. Integration with financial software and tools
5. Advanced financial analysis with generative AI
6. Automation and efficiency in financial workflows
7. Forecasting finance industry trends

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1. Basic data analysis and drawing insights

ChatGPT helps finance professionals analyze and process large datasets. Using advanced GPT algorithms, it can identify trends, patterns, and relationships between different variables and extract actionable insights from raw data.

Unlike traditional data analysis methods that mainly involve manual labor, ChatGPT leverages natural language processing and its machine learning model to process inputs and complex data, saving you time and effort.

Since ChatGPT has been trained on vast amounts of data, it can perform these analyses with a higher degree of accuracy, reducing the potential for human error.

ChatGPT can also rapidly adapt to changing datasets, allowing organizations to quickly take advantage of opportunities. Its machine learning capabilities also assist financial analysts predict market trends based on large datasets.

Despite these powerful capabilities, ChatGPT is not flawless. It can at times generate inaccurate or biased outputs. ChatGPT’s responses also depend on the quality of the data you provide.

As a result, you must counter-check to ensure your data is error-free. Use techniques like prompt chaining to perform complex tasks better and generate more comprehensive responses. Use GPT-3 and GPT-4 APIs to perform more intensive data analysis.

Example prompt: We recently released our annual revenues, and the reports show our profits are decreasing. Use the uploaded data to identify trends and factors contributing to reduced company performance.

2. Automated customer interaction and support

As an AI chatbot, ChatGPT can handle customer queries spanning from basic account inquiries to simple financial advice. With the integrated NLP technology, ChatGPT interprets queries and provides relevant responses, boosting customer satisfaction and engagement rates.

ChatGPT operates 24/7, automating various monotonous tasks in the customer service workflow. Its ability to provide consistent, accurate, and personalized responses enables financial professionals to enhance their customer experience.

GPT models can also be fine-tuned and connected to custom knowledge bases to provide more tailored customer support. Such a level of automation facilitates significant cost savings and time efficiency.

Example prompt: Assume you’re a customer service representative for a financial institution. Use the following process descriptions to provide answers to customers regarding how they can check their account balances, apply for credit cards, and manage their accounts.

3. Compliance and risk management assistance

ChatGPT assists compliance officers and risk management teams to ensure other parties follow rules and regulations. It can be trained on specific regulatory frameworks and guidelines, allowing it to review documents, monitor tasks, and simulate potential risk scenarios.

Since it has been trained on a wide range of public data, including best financial practices, ChatGPT can identify fraud and discrepancies in financial statements by analyzing vast amounts of transactional data.

Example prompt: We are a company operating in the finance sector. We are expected to follow [these rules] in our operations. Lately, we have had a surge of customers, and there was no time to perform a compliance check. Provide tips to help us ensure we are following rules and regulations.

4. Integration with financial software and tools

Integrate ChatGPT with finance software for extra functionalities. For example, finance professionals can take advantage of ChatGPT in conjunction with Excel for data analysis, visualization, and financial modeling.

The OpenAI API and Python libraries can be used together to transform financial workflows and systems. Additionally, you can work with GPT-4, a large language model (LLM), through APIs to access more advanced capabilities.

Example prompt: We have market data in a spreadsheet we wish to analyze in Excel, but this data contains duplicate values and missing entries. Generate Excel formulas we can use to clean the dataset and make it ready for processing.

5. Advanced financial analysis with generative AI

ChatGPT can summarize balance sheets, cash flow statements, and other complex financial documents, providing quick insights for decision-making.

Because ChatGPT is a form of generative AI, it can produce different types of content.

For example, you can import your data into ChatGPT and prompt it to create pro forma statements and various visualizations. It can also compare your performance with that of your competitors.

Additionally, ChatGPT can interpret financial statements for non-technical stakeholders so they better understand the contents and make more appropriate decisions.

Example prompt: We have the following cash flow statement we would like to use to gauge the company’s performance. Analyze it and help us determine if the company is making a profit or experiencing a loss.

6. Automation and efficiency in financial workflows

ChatGPT automates time-consuming tasks like data entry and generating real-time financial reports. It assists with customer support by answering basic queries and directing clients to other resources. Additionally, ChatGPT facilitates training and onboarding processes by producing materials and resources for customers and new hires.

Powered by advanced large language models, it can visualize financial data and metrics. It can also process and interpret complex datasets and provide valuable insights for decision-making.

What’s more, ChatGPT creates powerful financial models for different use cases. For instance, such models can be used for planning, forecasting, and budgeting, helping institutions use their resources efficiently.

Example prompt: We are a research company specializing in a variety of sectors. We collect most of the data manually, which is time-consuming. Write a Python script for mining data from various websites.

7. Forecasting finance industry trends

Predicting future events  improves decision-making and planning and reduces risks. ChatGPT’s AI model can be trained using specific financial datasets to help with forecasting and improve its accuracy and relevance in the finance industry.

Finance teams can leverage ChatGPT’s forecasting capabilities for collaborative decision-making. This AI-powered platform analyzes vast datasets quickly and assists with tasks like scenario planning, risk assessment, and real-time reporting. However, you need the paid version, ChatGPT Plus, to access more advanced features.

Example prompt: The attached spreadsheet contains our sales data for the past three years. Analyze it and then generate a sales forecast for the next two years.

Integrating ChatGPT into finance tasks

Embracing ChatGPT can create cost and time savings in your finance workflow. To get started, you need an OpenAI account, which you can easily create via the official website.

You also must have an OpenAI API key and a good understanding of the API’s technical documentation.

Integrating the OpenAI API into existing applications requires some coding knowledge of programming languages like Python, JavaScript, and Java. As a result, having a technical team by your side can simplify the integration process.

While working with the OpenAI API, ensure you don’t expose it to your private and confidential information. ChatGPT uses prompts for further learning, meaning your data can be exposed to unauthenticated parties.

Here are steps for integrating ChatGPT into the finance workspace.

Step 1: Initial setup

• Setting objectives. When using ChatGPT, define clear objectives of using a chatbot in your financial processes. This could range from customer support to in-depth financial analysis. Setting goals keeps you focused and creates more relevant and meaningful responses from ChatGPT.
• Platform selection. Before getting started, determine where you will integrate ChatGPT. Will it be in an existing platform like finance management software or a standalone chatbot on a website?
• API integration. You can add ChatGPT to your application through the OpenAI API. Through this API, users send their inputs and get appropriate responses. However, be careful to integrate it only in systems that don’t have direct access to critical data.

Step 2: Data training

• Understanding the dataset. The quality of ChatGPT’s outputs depends on the training data. It's crucial to maintain a clean, relevant, and comprehensive dataset for training purposes. Financial data may contain sensitive information like customer contact details and credit card numbers, so ensure these details are removed from data and aren’t used for training purposes.
• Training the model. Once you’ve collected and cleaned the data, you can use it for training. This involves feeding batches of text data into the model and adjusting its parameters to process specific trends and nuances.
• Iterative testing. Test the model using sample queries to determine how it will perform in real-world situations. Use the results to fine-tune the system for more accurate, relevant, and consistent results.

Step 3: Customization

• Tailoring responses. Train and fine-tune ChatGPT using custom data and domain-specific language to generate tailored content in your desired tone and style.
• Integrating with other systems. Integrate ChatGPT with other financial tools for more advanced functionalities. For instance, use ChatGPT to integrate chatbots into CRM systems to provide personalized customer interactions. It can also be linked with database tools to process real-time data.
• Setting limitations. Financial data is highly sensitive and can be used to commit fraud, identity theft, blackmail, and extortion. As a result, you must set boundaries on what ChatGPT can access or share.

Ongoing maintenance and updates

• Regular training. ChatGPT improves its performance when it’s continuously exposed to new data. Regularly update and train ChatGPT with new financial data to keep it current.
• Feedback loop. ChatGPT is not perfect. It can spit out inaccurate and biased outputs. Conduct regular audits and report any issues or inaccuracies you experience while using ChatGPT to OpenAI to facilitate continuous improvement.

AI challenges and considerations

While ChatGPT is a powerful tool, it still has challenges that require human oversight.

• Limitations of ChatGPT in finance. ChatGPT’s capabilities are limited by its training data. When it was released, it only had access to data produced up to 2021. This knowledge cutoff means ChatGPT may not be quite effective when handling real-time data.
• Ethical and bias concerns. Just like other AI tools, ChatGPT can be subject to algorithmic biases. This means it can amplify existing forms of discrimination, raise privacy concerns, and impact transparency in financial decisions.
• Ensuring accuracy and reliability of ChatGPT outputs. ChatGPT is not 100% accurate. As a result, you must check and verify AI-generated data before making major financial decisions.
• Overcoming technical and implementation challenges. ChatGPT is a fairly new technology requiring some technical expertise to implement. It may not be compatible with your existing infrastructure, meaning you have to invest in new systems. Employees may also not have the right knowledge to use ChatGPT in their workflow effectively. Consider working with ChatGPT specialists on Upwork to minimize potential issues during implementation.
• Maintaining security. ChatGPT integration could introduce new security risks in your workspace. Put procedural and systematic safeguards in place to ensure confidential data remains secure.

The future of finance with AI

ChatGPT is transforming the finance sector by helping with tasks like report  generation, data analysis, customer support, and risk management. With the right prompts, it can save you time and enhance your creativity and productivity.

From here, ChatGPT is expected to improve as it’s exposed to newer data. As ChatGPT becomes connected to the internet, it will have access to a vast wealth of information, improving its ability to perform different tasks.

But ChatGPT can’t transform the finance sector by itself. Human and AI collaboration is required for effective results. Rather than replacing humans, ChatGPT serves as a complementary tool that helps individuals be creative and productive.

If you don’t have the necessary technical expertise in artificial intelligence, consider working with ChatGPT specialists and financial analysts to harness the power of ChatGPT.

If you're a professional looking for work, Upwork can connect you to financial analysis jobs and ChatGPT-related jobs to help build your portfolio while earning an extra income. Get started today!

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Disclosure: Upwork is an OpenAI partner, giving OpenAI customers and other businesses direct access to trusted expert independent professionals experienced in working with OpenAI technologies.