21. Feb 2024

ChatGPT – Here to stay

For small and medium-sized companies in Switzerland, the use of AI technologies such as ChatGPT can provide a real competitive advantage. Four Rochester-Bern alumni talk about how they use ChatGPT in their field.

This is an image created by ChatGPT in which ChatGPT presents itself.

“What we are experiencing will change the world forever,” says Bernhard Bühlmann, CEO of ELIZA. He is referring to ChatGPT and its impact on the business world. The tool is used as support in administrative areas, as a sparring partner in analyses and strategy and even to control production processes. At present, there are still major differences between Swiss companies. “Some companies have been using AI for a long time, while others are not yet familiar with the new tools,” says Dave Mürner, founder of Nordfabrik. Bühlmann agrees, observing that many of his customers belittle ChatGPT and do not (yet) understand the potential behind it. “ChatGPT has achieved a breakthrough because it makes the technology so easy to use,” adds Daniel Aebersold, Co-Lead Strategy and Board Member of Nexplore AG. But how can SMEs use ChatGPT successfully?

The new employee with unknown skills

“At Nordfabrik AG, we use ChatGPT across all departments,” says Dave Mürner, CEO and founder of Nordfabrik – a consultancy firm specialising in SEO, SEA and AI, among other things. He advises his clients to treat ChatGPT like a new employee – one whose skills and knowledge are still unknown. “Ask ChatGPT about his skills and how he can support you in this or that area. ChatGPT provides very insightful and valuable information about himself and how he works,” says Mürner.

In general, Mürner’s experience shows that ChatGPT is particularly useful for routine tasks such as analysing SEO data. “ChatGPT is often less error-prone than humans when it comes to recurring tasks and offers excellent support here,” says Mürner. One of ChatGPT’s strengths is also its ability to communicate complex issues simply; for example, you can enter a complex report and let ChatGPT create a summary. The tool is also suitable for brainstorming, text creation and correction.

The topic also needs to be addressed by the Board of Directors: “ChatGPT should be on the agenda yesterday, not tomorrow. AI has an impact on practically every industry,” says Mürner. It is the responsibility of the Board of Directors to be aware of the strategic potential, but also the dangers and risks of AI. “Management is usually already using AI in its operational business – but many SMEs don’t know how to deal with it,” says Mürner. It is therefore the task of every Board of Directors to provide management with the appropriate strategic guidelines and impetus for a future-oriented approach to AI.

However, caution is also advised when using ChatGPT. Sometimes the answers look very convincing, but are completely false and made up. “We strongly recommend seeing ChatGPT as a support and partner for people and never simply blindly trusting the tool to outsource tasks,” says Mürner. There are also data protection and copyright issues. When using ChatGPT, it makes sense to have clear guidelines on what employees can and cannot post in the chat. “The legal requirements in this area are still largely undefined,” says Mürner.

Part of holistic quality management

ELIZA is the name of a computer programdeveloped by Joseph Weizenbaum in 1966 to demonstrate the possibilities of communication between humans and computers in natural language. More than 55 years later, this vision has become reality with ChatGPT. Alumnus Bernhard Bühlmann took up the idea and founded the eponymous company ELIZA four years ago – a quality management tool that efficiently digitalizes all of a company’s processes. “ELIZA’s vision is a tool that provides the right answers to all kinds of questions thanks to background information,” says Bühlmann. The idea was inspired in part by the Rochester-Bern CAS Board of Directors program, which Bühlmann completed. “When we looked at the various management tools, I kept asking myself: Couldn’t we summarize all the important information we need for management digitally in one system? That’s how ELIZA came about,” says Bühlmann.

ELIZA has integrated ChatGPT, which offers several advantages: Firstly, with ELIZA, companies can give all employees access to a licensed version of ChatGPT. “Without ELIZA, it is very expensive and complicated for companies to give all employees access. With ELIZA, companies only need a centrally registered, licensed version and all employees can use it,” says Bühlmann. A second advantage is that information about the company and specific questions can already be stored with ELIZA. This simplifies the use of ChatGPT and lowers the inhibition threshold. A third advantage is the higher level of data security – while all data is sent to OpenAI with ChatGPT, no data is passed on with ELIZA.

ChatGPT also plays an important role for Bühlmann in his role as Chairman of the Board of Directors of ELIZA – on two levels: Firstly, it is the task of every Board of Directors to ensure that ChatGPT is used and deployed in the company. A good start is usually when companies begin to create offers and emails using ChatGPT. “This is a good way to get employees used to ChatGPT. Because anyone who doesn’t start now will be left behind sooner or later,” says Bühlmann. The second aspect is that board members can also use ChatGPT as a tool themselves: “For many board activities, ChatGPT can help to create an initial draft, e.g. of the vision, mission, risk management and annual plan. There are no limits to the application,” says Bühlmann.

Like any instrument with a big impact, there are also downsides. “The potential for fraud is huge,” says Bühlmann. In addition, the train for meaningful regulation has left the station. “It’s as if the instructions for a nuclear bomb were available on the internet and you could buy all the materials for it in the supermarket,” says Bühlmann, describing the situation. The dangers include, for example, deep fake: the possibility of creating fake photos and videos of people. Or even hacking. “Anyone can give an AI the task of hacking in somewhere. The AI can then program and carry out this job itself without a human being able to influence it,” says Bühlmann. At the moment, it is therefore important that companies are aware of this and pay close attention to what they want to put online and what they don’t – including on their website.

From toy to disruptive game changer

“AI is actually an old technology. However, ChatGPT has achieved a breakthrough by creating a front end that makes this technology accessible to everyone,” says Daniel Aebersold, Co-Lead Strategy and Board Member of Nexplore AG, a digitalization company specializing in the digital workplace. ChatGPT is already being used in all areas of his company. While some people were introduced to the tool, for others – such as the developers – it was a no-brainer. “We had to make rather sure that we implemented guidelines to ensure secure use,” says Aebersold. It is also important for him to emphasize that ChatGPT is just the tip of the iceberg. “There are many forms of AI tools, such as Microsoft Copilot, but also proprietary applications that integrate the entire company’s knowledge into the ChatGPT application and thus serve as a knowledge database for the entire company. I advise companies to keep their eyes open,” says Aebersold.

Companies that have not yet used ChatGPT can find a fun way to get started: “Let your employees know that ChatGPT is available and let them play with it. The tool is very intuitive and people will find out for themselves how to use it,” says Aebersold. As soon as the tool is known, it will be possible to see whether a paid version is needed and whether a separate, isolated AI application would be useful. A separate module is often very helpful for internal knowledge management in particular. “Most companies have information in documents, but employees can’t find it at the crucial moment,” says Aebersold. With a dedicated module, they no longer have to search for the information, but can simply retrieve it.

Nexplore has for example already developed a module for the police. Such a module is sealed off and therefore more secure in terms of data protection than the public ChatGPT. Even though ChatGPT’s current guidelines state that the information entered will not be used for further development, caution is advised here. In an isolated system, the information is in a cloud and at least as secure as in your own database. In addition, it can be guaranteed in your own environment that only truthful information is given out. “ChatGPT is based on probabilities: The tool outputs the most probable answer, but this does not mean that it is true,” says Abersold. A company’s own tool can be configured so that it only gives answers if they are based on a specific data source, and if this is not the case, the tool says that it does not know the answer. This is particularly important for the police. If someone asks what a certain regulation is, the tool gives the exact answer, including the source, or says that it does not have the answer.

“I think it’s negligent if AI is not discussed on the Board of Directors,” says Aebersold. The topic affects every company and sometimes even has a disruptive character. The Board of Directors has a responsibility to address the opportunities and challenges of AI at a strategic level. Aebersold sees an example in his own company: “We are largely developers, and AI will change this service significantly because it makes code generation very easy.” The Board of Directors of Nexplore now has the task of ensuring that the company continues to provide services that maximise the benefits for customers in the future.

Sparring partner in asset management

In early 2023, the Bloomberg business agency made headlines when it asked ChatGPT if he could put together a portfolio of US stocks that would beat the market. Here is the answer: ” It is not possible for me to create a stock portfolio that beats the US stock market because the stock market is unpredictable and past performance is no guarantee of future (…)”. RoBe asked ChatGPT 4.0 the same question about Swiss equities on 30 January 2024 and received the following answer: “A portfolio that beats the Swiss market should contain a balanced mix of growth and value stocks, as well as companies from different sectors such as financial services, healthcare and consumer goods. Some examples: Nestlé, Novartis, UBS Group, Roche Holding and ABB. Note, however, that this recommendation is based on historical data and does not guarantee future results.”

ChatGPT seems to have become more confident. Even if the answer is not earth-shattering, it does show that AI can keep up with the average financial advisor. Accordingly, there are many conceivable applications for the wealth management industry. A large part of a financial analyst’s job is to quickly find and collate information in order to make the right investment decisions – something ChatGPT is very good at. In addition, AI can help analyze large amounts of text data to create portfolio constructions and help humans identify emerging investment themes and trends. ChatGPT serves as a kind of sparring partner and research assistant. It can evaluate ideas, test text structures or perform scenario analyses.

CAS Board of Directors RoBe alumnus Peter Stiefel is Senior Sales at RAM Active Investments – an institutional asset manager based in Geneva. Since 2007, the company has relied on a combination of extensive data and state-of-the-art technologies to offer diversified investment solutions. RAM AI also uses AI, among other things to evaluate companies according to ESG (environmental, social and governance) standards. ChatGPT is used here for text analyses. This means ChatGPT can analyze quarterly reports, social media and other sources. In the event of any controversies, RAM AI can contact the company directly. “We track thousands of companies, so the help of AI is very important,” says Stiefel.

Not a passing trend

“Tools like ChatGPT are clearly not a passing trend, but products of a new, ground-breaking technology that has the potential to revolutionize almost all areas of our lives,” says Mürner. And all the signs prove him right. “When I talk to customers, we’re bound to find one to three exciting new applications for AI-based tools in an hour. The fields of application are almost endless,” says Abersold. Leaders and Boards of Directors are therefore well advised to get to grips with the topic. A simple, perhaps even playful introduction, in which employees get into the habit of writing certain standard emails via ChatGPT, can already help to raise awareness of the tool among the team. In addition, tools such as ELIZA or consulting companies such as Nordfabrik and Nexplore can help with successful implementation.

You can find out more about leadership in the age of digital transformation in our CAS Digital Acceleration.