Want to Use ChatGPT for your business? Read this first.

I recently paid a contractor at Kasvaa a few thousand dollars to produce some market research for two consumer markets for a couple of clients. The work took several weeks and the research was solid and well-sourced. 

So imagine my shock when the same contractor sent me a 1000-word text message containing findings similar to the ones I paid them for, but this time the findings were generated by ChatGPT in a matter of seconds and at no additional cost.

As I stared at my phone, I wondered if I had wasted my money paying someone for market research when this robot could spit it back for free in under a minute. 

After looking more closely, I realized that the robot’s output was no where near “client-read”. 

Thankfully, humans aren’t obsolete just yet.

Years ago, I wrote that we don’t need to fear the robots but I must admit that lately, I've started to doubt my own advice.

How can we compete with robots who can effortlessly scan vast amounts of data and produce summaries in seconds?

The answer lies in understanding the distinction between research and insight, recognizing how ChatGPT can assist in business decision-making, and appreciating the development of insight within the human mind.

The Difference Between Research and Insight

While working at a market research firm years ago, my boss shared feedback from a client at Google who stated that research is about three fundamental questions: What's going on? Why is it going on? What do we do about it?

I would refine this handy framework to acknowledge that research primarily answers the first question, while insight addresses the last question. Insight leads to action.

So what sets research apart from insight?

Research comprises a collection of data, while insight weaves together multiple data points into an actionable narrative.

Returning to the ChatGPT research that my colleague shared with me, you'll find statements such as, "Ceramic coatings and paint protection films have gained significant popularity among hobbyist car polishers. These products offer long-lasting protection against UV rays, oxidation, and minor scratches, while providing an enhanced glossy finish."

ChatGPT produces data. 

It tells you the answer to the first question posed by my former client: “What’s going on?” And it does it within seconds!* (Quick caveat: as of this writing, ChatGPT ChatGPT only has access to data up until September 2021).

Yet ChatGPT fails to answer the third question about the implications of the research. 

It can, however, help you frame the decision.

How to leverage AI for research

As we see above, the initial query asked about the DIY market for auto detailing. But I want to know why it’s happening and what this implies for my (or my client’s) business.        

Brian Chen, tech reporter and columnist for the New York Times, promotes what he calls, “magic prompts.” Chen writes in a recent article that we should start prompts with the words, “Act as if…” This prompt “will instruct the bot to emulate an expert,” Chen writes. 

So, when I posed a strategic question to address a challenge faced by one of my clients, using Chen's prompt, ChatGPT quickly provided a list of four factors to consider: customer demand, team expertise, competitive advantage, and partner relationships.

Now I have a concise framework to guide the decision-making process with my client. 

Next, I might lead a discussion with my client performing a SWOT on the company’s position based on those four dimensions. 

After my client responds, I could challenge their assumptions and push them to think more deeply about the implications. 

So let’s recap how we have used ChatGPT so far.

First, I use it to get a quick overview of the market situation. Then I ask it to emulate my context and it generates broad parameters to consider. Finally, I apply the broad framework to my specific business context through discussion and analysis. 

How Insight is Developed in the Mind

ChatGPT attempts to emulate the human mind by identifying patterns in textual data. It already does a pretty good job of this. The problem is that humans cannot equally match the reverse. We are slow at processing the information and lodging it into our brains.

Ezra Klein wrote an opinion piece in the New York Times that I encourage everyone who cares about this stuff to read. He notes that many of us think of the process of outsourcing research and other tasks to ChatGPT like the scene in the Matrix when Neo “downloads” Kung Fu into his brain.

However, lack of information is not the reason why I am not a Kung Fu black belt; it's the time it takes to internalize and integrate that information into my mind and body.

Klein writes that when AI produces summaries of long documents, “the increased efficiency would come at the cost of new ideas and deeper insights.” 

Put simply, Chat GPT, in its current form, cannot replace the reading and thinking process. We still need to grapple with complex arguments, and no robot can do that for us. This is because humans process information at a much slower pace than the internet can produce it. 

As we said above, insight comes from making connections across multiple data points. Moreover, there is no shortcut to insight; it requires traditional thinking and engaging with the challenges by conducting our own research.

Klein continues, “no one thinks that if students have ChatGPT write their essays, they have cleverly boosted their productivity rather than lost the opportunity to learn. The analogy to office work is not perfect — there are many dull tasks worth automating so people can spend their time on more creative pursuits — but the dangers of over automating cognitive and creative processes are real.”

Summary

In short, ChatGPT can be the starting point on the journey towards insight, but it should never be the endpoint. I can use AI “magic prompts” to help me structure my thinking, but I still have to read articles, ask questions and make non-linear connections to past challenges. This “connectivity” is the linchpin of insight and will separate your business from the lazy ones that try to outsource their way out of difficult decisions. 

As always, I welcome your comments. If you want to talk about the big questions facing your business I invite you to ask a robot and then give me a call. We can compare notes!

Best,

Stephen