How ChatGPT Impacts Kenyan Businesses
By Kennedy Chege, Investment Analyst, Jubilee Asset Management Limited.
Large language models (LLMs) like ChatGPT are revolutionizing how businesses operate worldwide, and Kenya is no exception. ChatGPT and similar AI technologies present both positive implications and potential challenges for Kenyan companies. Let’s look at how they could shape the way we do business in Kenya in the future.
What are Large Language Models?
LLMs are sophisticated AI systems trained on massive amounts of text data. This allows them to understand and respond to human language in a remarkably human-like way. ChatGPT, developed by OpenAI, is a prominent example.
It’s important to note that ChatGPT is just one player in a rapidly evolving field. New and even more powerful LLMs are constantly being developed, promising even greater capabilities for businesses in the future.
ChatGPT’s Potential for Kenyan Businesses.
ChatGPT offers a range of applications for Kenyan companies, with the potential to significantly impact areas like:
Customer Service: ChatGPT-powered chatbots can handle routine inquiries, answer frequently asked questions, and even process orders. This frees up human customer service representatives to focus on complex issues, leading to improved customer satisfaction and reduced costs. This is a potential game changer for small companies with limited resources which is prevalent in Kenya.
Marketing and Sales: LLMs can personalise marketing campaigns, recommend products to customers, and even negotiate deals. This personalized approach can increase brand loyalty, lead generation, and ultimately, sales.
Efficiency and Productivity: AI can automate repetitive tasks such as scheduling appointments, managing inventory, and generating reports. This allows employees to focus on more strategic initiatives, boosting overall productivity.
Challenges and Considerations.
While the potential benefits are significant, there are also challenges to consider:
Job displacement: As AI automates tasks low-skill, repetitive, some jobs may be lost. According to the World Economic Forum’s The Future of Jobs Report 2020, 85 million jobs are expected to be lost globally. It’s imperative that companies implement these technologies responsibly and sustainable. One solution to this dilemma is introducing reskilling initiatives for affected employees.
Data Security and Privacy: LLMs require access to large amounts of data, including personal data like names, addresses, and payment information. Naturally, this raises concerns about data security and privacy. Companies must ensure data is collected, stored, and used ethically and in compliance with regulations.
A Catalyst for Growth.
Despite the challenges, large language models like ChatGPT offer immense potential for Kenyan businesses. By leveraging these technologies strategically and responsibly, companies can streamline operations, enhance customer experiences, and drive innovation. This, in turn, can contribute to economic growth and development in Kenya.