OpenAI recently announced the first of its B2B product portfolio, ChatGPT Enterprise, arguably the most significant upgrade to the generative AI (genAI) platform since it launched last November.
The Enterprise version aims to address two major concerns users have had with the cloud-based AI service: What happens to corporate data that’s used to customize it for specific business purposes, and how can that data be secured. The new ChatGPT offering increases security and privacy through encryption and single sign-on for enterprise authentication.
GenAI continues to dominate the tech industry and is being heralded as a steroid for business efficiency and productivity. Advertising and marketing groups can use ChatGPT to help create new campaigns. The technology can be used to speed up the writing of software code by producing a sometimes-useful base from which developers — and even non-techies — can create useful apps and plug-ins. And, as a chatbot, ChatGPT can be used for customer service and surveys.
The global artificial intelligence (AI) market was valued at $428 billion in 2022 and is projected to grow from $515.31 billion this year to more than $2 trillion by 2030, according to Fortune Business Insights.
Seventy-nine percent of CEOs believe genAI will increase efficiencies, and 52% expect it to boost growth opportunities, according to a Deloitte survey released in July. The same poll found 55% of CEOs are already evaluating or experimenting with AI.
Forty-five percent of executive leaders said ChatGPT had encouraged them to increase AI investments, with 68% believing the benefits of genAI outweigh the risks, according to a Gartner Research poll of 2,500 executives. With an enterprise version of ChatGPT, those percentages are only likely to increase.
In an interview, Claire Trachet, CEO of London-based tech business advisory firm Trachet, said she sees a new wave of tech startups leveraging ChatGPT Enterprise to reduce their costs and increase investor appetite.
CEO Claire Trachet
In this Q&A, Computerworldposed a series of questions via email to Trachet about ChatGPT Enterprise and how it could affect the adoption of genAI tools at both startup firms and more established enterprises. The following are the answers to those questions:
What does ChatGPT Enterprise means for startups and investor sentiment? “The announcement of ChatGPT Enterprise and plans for ChatGPT Business to also be introduced could signal new opportunities for businesses and startups who are navigating an uncertain economic climate. As we saw with the debut of ChatGPT, investor confidence naturally grew — with everyone wanting to capitalize on new technology that will inevitably change the way we work on a day-to-day basis.
“This is also coming at a time when the AI arms race is becoming more competitive, and consumers are becoming more familiar with AI technology. As a result, consumers and businesses are becoming more inclined to use and integrate this technology into their lives and businesses. For startups and smaller businesses, this will act as a way to help them scale up in a more cost-effective way through M&A deals and gain investor interest.
“Despite the M&A sector experiencing a slowdown this year, Open-AI’s announcement could help the sector pick up again. Investors will no longer be frozen, as they know opportunities are presenting themselves and are ready to actively seize them. In addition, there is a growing number of investors who sat on a dry powder pile having paused investments due to uncertainty in 2022. This means there are significant opportunities on the horizon, and now is the moment to prepare and get deal ready as [options] will increase in H2 of this year.”
What is the greatest significance of ChatGPT Enterprise for businesses compared to the previous version of ChatGPT? “The previous version of ChatGPT was made as a way for people to interact with the model through text-based conversations, demonstrating the capabilities of large language models and providing users with a conversational AI experience. In comparison, ChatGPT Enterprise has been specifically tailored to address the needs and concerns of businesses by providing enhanced security, data control, and advanced features for data analysis and customization.”
Do you believe ChatGPT Enterprise will prompt greater adoption of generative AI? If so, why? “I think the enhanced security and privacy features are definitely a step in the right direction, which could see a greater adoption of AI. [While] the debut of ChatGPT was met with a lot of excitement, dominating headlines and signaling a change in the way we interact with technology, there have since been a lot of experts and academics who have raised concerns about the service.
“We have seen various countries banning ChatGPT, including Italy becoming the first Western country to do so, and experts such as Elon Musk, Tim Cook, and even AI godfather Geoffrey Hinton expressing their concerns over the capabilities of generative AI. However, with ChatGPT Enterprise assuring data ownership and controls to mitigate these concerns, it is possible businesses will be more willing to integrate AI into their operations.
“Additionally, unlimited access to GPT-4 will also be a significant advantage, giving users quicker and more accurate insights from data, which are essential for informed decision making. This efficiency boost enhances the appeal of generative AI for businesses looking to streamline their processes and gain competitive advantages. The ability to modify ChatGPT's knowledge of company data and the future advanced analytical tools will also make use of the software more appealing for businesses.”
Many businesses are still wary of using ChatGPT or other generative AI platforms because the tech poses a risk not only to security but to privacy and copy rights. Does ChatGPT Enterprise address those concerns? “Although ChatGPT Enterprise has addressed various concerns related to security, privacy, and data rights, some business leaders remain reticent. For example, certain nuanced concerns such as copyright, data security during usage, and the flexibility of customization might still require further clarity or solutions.
“At the same time, AI regulation remains a significant topic of discussion [among] academics, experts, and the government. The UK has announced it will be hosting an AI safety summit in November where discussion will take place around regulation and potential consequences of AI. The outcomes of this summit are likely to have a significant effect in terms of how widely these tools are adopted in businesses across the country.”
Microsoft and Amazon appear locked in a battle over who’ll rule the cloud, and genAI appears to be at the center of that fight now. Who do you believe has the advantage, and how should users approach the adoption of AI in the cloud? “Both tech giants have made headlines for being prominent figures in both the cloud and generative AI race. At present, Amazon leads in the cloud market, having been in the market for several years prior to the likes of Microsoft. Most recently, the company has announced various new AI tools such as a language-model-based, Bedrock and a code generator, CodeWhisperer. The tech giant also announced it would start the process to develop its own AI chips. The diversification of the business’ approach demonstrates it is thinking far into the future about how it will utilize AI and retain its place as a leader in the space.
“Despite this, Microsoft has seen significant growth in its revenues despite being much earlier on in its journey compared to Amazon. At the same time, while Amazon has pulled back on its public announcements and marketing, Microsoft has been a prominent name in the media in relation to AI. This includes announcing that all of its products would have ‘copilots,' a brand that would be across all of the company’s platforms to make things more efficient.”
How does ChatGPT Business that differ from the Enterprise version? “ChatGPT Business is designed for businesses and individuals looking to access and use OpenAI's language model for general purposes. It offers an enhanced version of the standard ChatGPT experience, with improvements and optimizations that cater to business-related queries. This version might provide features such as improved comprehension of business terminology, better handling of industry-specific information, and possibly faster response times.
“[While] ChatGPT Enterprise is a more advanced version of the original ChatGPT model, addressing the concerns surrounding security, privacy, data ownership, and customization for businesses. It goes beyond the features offered in ChatGPT Business, providing more enhanced security measures, full data ownership, and control over data usage.”