Is ChatGPT Generative AI: Understanding Its Functioning, Capabilities, and Limitations

Imagine chatting with a computer program based on artificial intelligence (AI) that can not only hold a meaningful conversation but also can assist you in writing stories, translating languages, and explaining complex topics—all in real time. These are some capabilities of OpenAI’s ChatGPT generative AI model. Launched in November 2022, it quickly amassed over 100 million users within just two months [1], making it the fastest-growing consumer-facing application in history. 

Read on to discover more about OpenAI’s technology and how you can use it.

Is ChatGPT generative AI, and how does it function?

Because ChatGPT is built on OpenAI’s neural network specifically designed for natural language processing (NLP) known as generative pre-trained transformer (GPT) architecture—it is generative AI. ChatGPT is pre-trained on vast amounts of data, including text from books and websites—about 570 gigabytes of text for the GPT model alone [2]. This pre-training allows it to learn the patterns and structures of language in a process called unsupervised learning, where the program uses context to predict the next word in a sentence. 

Fine-tuning occurs after pre-training, allowing ChatGPT to use a curated data set of high-quality responses to help it provide more accurate and appropriate replies. ChatGPT also uses reinforcement learning from human feedback (RLHF), which enlists human raters to rank AI responses to improve the system’s performance. This feedback loop refines the model to align its outputs with human preferences, ensuring reliable responses. 

ChatGPT can understand context when you are having a conversation with it, allowing it to generate coherent responses in a natural and engaging manner. The transformer architecture of ChatGPT facilitates this critical ability, allowing the technology to analyze input sequences using a self-attention mechanism. The model looks at every part of the sentence and compares it to every other part. This helps the model determine which words relate to each other and how. 

By doing this, the transformer can understand long and complex relationships in a sentence. It further uses transformer blocks or layers of processing to look at the input sequence in more detail, further refining the process. GPT 3.5, for instance, uses 13 transformer blocks [3]. After analyzing the input, the model takes what it has learned and generates an output.  

As the model evolves, OpenAI collects data from conversations between the human trainers and the chatbot to improve ChatGPT’s performance over several iterations. The latest version of ChatGPT can process images and text and although it is still less capable than humans in many real-world applications, it can demonstrate human-level capabilities on academic benchmarks. 

Applications of ChatGPT across industries

With its ability to generate contextually relevant responses and automate tasks, ChatGPT can make an impact across industries. For example, you might use ChatGPT to streamline operations and boost efficiencies in your sector. Check out a few use cases to gain a deeper understanding of the possibilities.

Customer service

One prominent application of ChatGPT is conversation generation. Nowadays, you might find yourself interacting with customer service chatbots or virtual assistants powered by AI. These chatbots can handle many basic inquiries and troubleshoot common issues without requiring any human intervention. For example, Expedia employs ChatGPT-driven bots to optimize customer service operations. 

Idea generation

ChatGPT can also help you generate content writing ideas. Its ability to quickly generate outlines for blog posts or articles can be a helpful time saver. For example, you might use ChatGPT to help innovate new ideas, which may open up more time for you to focus more on strategic tasks. 

Translating foreign languages

Language translation is another area in which you can find some of ChatGPT’s applications. Duolingo uses GPT-4 to provide you with in-depth explanations about your answers to language questions, acting like an actual human tutor. It can also create an AI persona with whom you can interact in the language of your choice.

Educational support

You might use ChatGPT as a personalized tutor in education. A recent example is its collaboration with Udacity. Udacity’s GPT-4-powered virtual tutor can provide quick summaries to explain specific topics, answer questions, and help fix errors in coding assignments, tailoring support to individual learners. AI-driven platforms, such as Scribe, also use ChatGPT to provide feedback on training manuals, ensuring clarity and effectiveness in instructional content.

Health care

You can also find potential applications of ChatGPT in the health care sector. For instance, you might implement ChatGPT to automate tasks like appointment scheduling and prescription refills, which can improve efficiency and reduce health care costs. Companies like Nuance are exploring the use of ChatGPT-based systems to automate clinical documentation, making it a potentially vital tool for the health care professionals’ workflow. 

Advanced features and capabilities

ChatGPT is not just about generating simple text—you can use its advanced features across many domains. A unique feature of ChatGPT is its ability to handle multiturn conversations, which are interactions between users and ChatGPT that require follow-up questions or prompts to arrive at the correct answer. By analyzing the flow of language in a given input and grasping your underlying needs over several interactions, ChatGPT can offer you customized guidance and suggestions. This capability can make your interactions with ChatGPT feel more dynamic and meaningful, enhancing your experience. 

Another powerful feature is conditional text generation. You can guide ChatGPT in producing responses in a specific tone, and it can adapt accordingly. If you are a content creator who shifts between styles, for instance, this flexibility might make ChatGPT a valuable tool for you.

You can also fine-tune ChatGPT for specialized tasks. You might use it to recognize chemical compounds, label roles in reactions, extract information about metal-organic framework synthesis, pull data from nuclear magnetic resonance (NMR) reports, and break down reaction descriptions into step-by-step actions. Even with limited training data, the fine-tuned ChatGPT achieved accuracy rates between 69 percent and 95 percent [4], outperforming other language models. Fine-tuning ChatGPT 3.5 with specialized prompts can also help you achieve higher accuracy for complex evaluations, such as interdisciplinary learning evaluations, where you would typically need human-level expertise. 

One of ChatGPT’s notable abilities is its ability to generate diverse responses to refined input questions. You can ask ChatGPT the same question multiple times with slightly refined instructions (prompt engineering), and it will generate different answers. This diversity in answers can be beneficial for brainstorming sessions where you need new ideas or for adopting different writing styles. 

Ethical and social implications

While you can benefit from all that ChatGPT offers, you will also want to consider the ethical and social concerns it presents. One issue is the potential for misinformation and bias. If the data ChatGPT is trained on contains harmful stereotypes or false information, it can inadvertently produce content that may reinforce these ideas. This becomes particularly problematic when you ask questions about health where misleading information can have serious consequences. 

Another concern with ChatGPT use is privacy. The large volumes of data used to train ChatGPT may contain sensitive information, making privacy an issue, especially in sectors like health care. As AI-generated content becomes more prevalent, issues regarding copyright and intellectual property may arise, leading to questions about who owns the rights to the content—the developers, the users, or both. 

The rise of AI also raises concerns in some areas regarding job displacement. This shift could highlight the need for human reskilling programs. 

Despite these ethical challenges, efforts are underway to ensure the responsible use of generative AI. For example, governments and private organizations are actively working to build frameworks to help regulate AI technologies’ use. For instance, the AI in Government Act in the US aims to set AI transparency, accountability, and safety standards. Educational institutions are also incorporating the ethics of AI and its responsible use into their curricula. These efforts aim to prepare the next generation of AI developers and users to navigate the ethical challenges these powerful AI technologies pose. 

What’s next for ChatGPT? 

By now you likely know the answer to the question, “Is ChatGPT generative AI?”, but you may be wondering about the possibilities in ChatGPT’s future. One significant development you can expect is improvement in planning and reasoning abilities, enabling ChatGPT to handle more complex tasks like project management. Customizing ChatGPT to address specific problems in health care, math, or coding will likely be a key trend in the future. 

Looking ahead, the rise of interactive AI agents capable of automating real-world tasks is another exciting possibility. These AI assistants may provide suggestions and perform tasks autonomously, increasing productivity across industries. 

Explore OpenAI and ChatGPT further on Coursera

ChatGPT is revolutionizing how humans interact with technology, offering new ways to improve efficiency across industries. With advanced features like multiturn conversations, conditional text generation, and fine-tuning, ChatGPT can become an indispensable tool for your daily productivity. However, as its capabilities expand, addressing ethical concerns related to bias, misinformation, privacy, and job displacement will be crucial. 

If you want to automate repetitive tasks to enhance customer experiences or brainstorm content writing ideas, learning how to use ChatGPT effectively might be able to help. You can start by experimenting with its various functions, integrating it into your daily workflows, and identifying areas where it can deliver maximum value. For those looking to discover the basics of generative AI and practical uses of ChatGPT for project management, check out courses offered on Coursera, such as Generative AI Fundamentals or ChatGPT for Project Management-Leveraging AI for Success.