{"id":5837,"date":"2024-03-19T15:12:31","date_gmt":"2024-03-19T14:12:31","guid":{"rendered":"https:\/\/www.uni.lu\/snt-en\/?post_type=news&#038;p=5837"},"modified":"2025-10-28T17:08:49","modified_gmt":"2025-10-28T16:08:49","slug":"prof-state-on-chatgpt-and-competitive-advantage","status":"publish","type":"news","link":"https:\/\/www.uni.lu\/snt-en\/news\/prof-state-on-chatgpt-and-competitive-advantage\/","title":{"rendered":"Prof. State on ChatGPT and competitive advantage"},"content":{"rendered":"\n<section class=\"wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\">\n<p><\/p>\n\n\n\n<p>ChatGPT can create any kind of text. This starts with letters that&nbsp;include the&nbsp;standard phrases and&nbsp;politeness that&nbsp;everyone expects. In business applications,&nbsp;ChatGPT can automate tasks that are time-consuming,&nbsp;repetitive,&nbsp;and do not require specific expertise. For example, ChatGPT&nbsp;can&nbsp;summarise and fill in documents, which can boost the efficiency of businesses.&nbsp;This is especially relevant in heavily regulated sectors&nbsp;such asthe financial services&nbsp;industry,&nbsp;where people spend a lot of&nbsp;time&nbsp;on&nbsp;document processing.<\/p>\n\n\n\n<p><em>Author: Prof. Radu State, head of the&nbsp;SErvices and Data mANagement<\/em>&nbsp;(<em>SEDAN) research group.<\/em><\/p>\n\n\n\n<p>ChatGPT levels the playing field for applying natural language processing in businesses. While in the past only&nbsp;specialised&nbsp;companies could apply language models, ChatGPT and its competitors now lower the entrance barrier and make them available to basically everyone. With ChatGPT, we see an application of many years of research on neural networks and transformers that is now revolutionising the market. ChatGPT will help&nbsp;automate&nbsp;tedious tasks, allowing people to focus more on conceptual work.&nbsp;Missing out on this efficiency,&nbsp;companies&nbsp;that rely on repetitive and manual processes&nbsp;will&nbsp;lose their competitive advantage and&nbsp;might be at risk&nbsp;of disappearing.<\/p>\n\n\n\n<p>In our&nbsp;<a href=\"https:\/\/ncer-fintech.uni.lu\">National Centre of Excellence in Financial Technologies&nbsp;(NCER-FT)<\/a>,&nbsp;we are trying to bring cutting-edge research closer to industry. I remember my natural language processing classes with Prof. Eric Brill&nbsp;at&nbsp;Johns Hopkins University, 25 years&nbsp;ago,&nbsp;and&nbsp;I am&nbsp;excited about the progress in this&nbsp;area.&nbsp;At that time, we did not have the powerful hardware and deep learning was yet to be invented.&nbsp;&nbsp;Nowadays, OpenAI made a pioneering dream reality by leveraging&nbsp;&nbsp;huge computational power&nbsp;and&nbsp;money to train&nbsp;&nbsp;models on an enormous amount of data.&nbsp;&nbsp;ChatGPT is now trained on more information&nbsp;than&nbsp;millions of users will be able to see in their lifetime. At SnT, we built a research prototype based on ChatGPT, and we were quite amazed to see how much we can achieve in just two weeks of software development. The text&nbsp;analysis that&nbsp;we implemented provided results that are close to what we can expect from manual work done by&nbsp;humans.<\/p>\n\n\n\n<p>Today, ChatGPT can be used&nbsp;to write, autocorrect,&nbsp;and&nbsp;rewrite&nbsp;texts. Tomorrow, ChatGPT or its competitors&nbsp;will also&nbsp;be able to&nbsp;process&nbsp;voice or video, and in fact some projects are already doing this.&nbsp;Thinking ahead, ChatGPT will evolve into a direction where it can model more complex lines of thought, like we humans do. When we reason, we do not only generate text. We are thinking about&nbsp;processes&nbsp;step by step. In the future, this technology will&nbsp;simulate&nbsp;the thought of humans. This will, for example, revolutionise computer programming: While in the past,&nbsp;programming was&nbsp;required to describe each and every&nbsp;step, now&nbsp;you&nbsp;cangive ChatGPT the input specification&nbsp;and&nbsp;obtain code,&nbsp;documentation,&nbsp;as well as test suites automatically. The big winners in this regard are the speed of development and the costs of writing software.<\/p>\n\n\n\n<p>However, research needs to address major challenges for ChatGPT and other large language models from the perspectives of cybersecurity and privacy, business, and ethics. From a cybersecurity perspective, granting a language model the right to execute a program on a computer is a security nightmare. Regarding privacy, we currently cannot control where private data is going that we share with ChatGPT. This can be problematic depending on the legal framework and the data that is used for training.&nbsp;&nbsp;We already know such concerns from some companies that, for example, do not allow the use of services such as Dropbox for reasons of confidentiality. To apply ChatGPT in businesses, we need to be able to customise language models with more precise data for business use cases and to ensure the security and privacy from both a technological and legal point of view.&nbsp;Further,&nbsp;we need to improve the technology to reduce the cost of training large language models, which today&nbsp;are&nbsp;far too high.<\/p>\n\n\n\n<p>Research also needs to address ethical questions around ChatGPT. If training data contains biases, e.g., regarding race or sexual orientation, a&nbsp;model can amplify these biases.&nbsp;Thus, research needs to be able to assess if&nbsp;there is any bias in the training data.&nbsp;Furthermore,&nbsp;while ChatGPT can be helpful in many contexts, we should not&nbsp;rely on it entirely.&nbsp;ChatGPT can be an efficient tool for&nbsp;learning,&nbsp;but it&nbsp;should not be a substitute for learning.<\/p>\n\n\n\n<p>ChatGPT is an amazing development, which led to an incredible number of start-ups and projects in only six months.&nbsp;Thus, we also&nbsp;need&nbsp;a&nbsp;European version of ChatGPT operated over a&nbsp;sovereign&nbsp;cloud and network infrastructure. It will be critical to have the competencies here in Europe to make full use of the technology. Currently, the EU discusses its AI Act, which in the future is supposed to ensure that AI technology is compliant with our norms. Europe will need its own version of ChatGPT from&nbsp;both&nbsp;a strategic and ethical perspective.<\/p>\n\n\n\n<p><em><a href=\"https:\/\/www.uni.lu\/snt-en\/people\/radu-state\/\">Prof. Dr. Radu State<\/a>&nbsp;is the head of the SErvices and Data mANagement (SEDAN) research group at the University of Luxembourg\u2019s Interdisciplinary Centre for Security, Reliability and Trust (SnT). Prof. State contributes to the National Centre&nbsp;of Excellence in Financial Technologies (NCER-FT).<\/em><\/p>\n\n\n\n<p><strong><em>How does ChatGPT work?<\/em><\/strong><em> Imagine that you take every piece of text available on the Internet. You feed it into a computer, and you let the computer learn what \u201ctext\u201d looks like. \u201cLooks like\u201d means: What are words,&nbsp;what are relationships between words, or what is the relationship between sentences. To achieve this, the computer builds a model, called artificial neural network. The model includes coordinates for pieces of text and puts them into a multidimensional space. Distances of the points in this space describe similarities between the pieces of text. If you ask this computer a question, it will look at the coordinates of the question and then generate its answer from there.<\/em><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":326,"featured_media":5838,"template":"","format":"standard","meta":{"featured_image_focal_point":[],"show_featured_caption":false,"ulux_newsletter_groups":"","uluxPostTitle":"","uluxPrePostTitle":"","_trash_the_other_posts":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false},"news-category":[4],"news-topic":[10,14],"organisation":[184,354,194],"authorship":[326],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Prof. State on ChatGPT and competitive advantage - SnT news I University of Luxembourg<\/title>\n<meta name=\"description\" content=\"ChatGPT can create any kind of text. 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With ChatGPT, we see an application of many years of research on neural networks and transformers that is now revolutionising the market.","breadcrumb":{"@id":"https:\/\/www.uni.lu\/snt-en\/news\/prof-state-on-chatgpt-and-competitive-advantage\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.uni.lu\/snt-en\/news\/prof-state-on-chatgpt-and-competitive-advantage\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.uni.lu\/snt-en\/news\/prof-state-on-chatgpt-and-competitive-advantage\/#primaryimage","url":"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/5\/2024\/03\/Portrait-of-Radu-State.jpg","contentUrl":"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/5\/2024\/03\/Portrait-of-Radu-State.jpg","width":1024,"height":768,"caption":"Portrait of Radu State"},{"@type":"BreadcrumbList","@id":"https:\/\/www.uni.lu\/snt-en\/news\/prof-state-on-chatgpt-and-competitive-advantage\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.uni.lu\/en"},{"@type":"ListItem","position":2,"name":"Interdisciplinary Centre for Security, Reliability and Trust (SnT)","item":"https:\/\/www.uni.lu\/snt-en\/"},{"@type":"ListItem","position":3,"name":"News","item":"https:\/\/www.uni.lu\/snt-en\/news\/"},{"@type":"ListItem","position":4,"name":"Prof. State on ChatGPT and competitive advantage"}]},{"@type":"WebSite","@id":"https:\/\/www.uni.lu\/snt-en\/#website","url":"https:\/\/www.uni.lu\/snt-en\/","name":"SnT","description":"Interdisciplinary Centre for Security, Reliability and Trust I Uni.lu","publisher":{"@id":"https:\/\/www.uni.lu\/snt-en\/#organization"},"alternateName":"Interdisciplinary Centre for Security, Reliability and Trust I University of Luxembourg","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.uni.lu\/snt-en\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/www.uni.lu\/snt-en\/#organization","name":"SnT - University of Luxembourg I Uni.lu","alternateName":"Interdisciplinary Centre for Security, Reliability and Trust","url":"https:\/\/www.uni.lu\/snt-en\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.uni.lu\/snt-en\/#\/schema\/logo\/image\/","url":"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/5\/2026\/03\/03112604\/SNT_SM-Profile_1600x1600px-scaled.jpg","contentUrl":"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/5\/2026\/03\/03112604\/SNT_SM-Profile_1600x1600px-scaled.jpg","width":2560,"height":2560,"caption":"SnT - University of Luxembourg I Uni.lu"},"image":{"@id":"https:\/\/www.uni.lu\/snt-en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.linkedin.com\/school\/snt-lu\/"]},{"@type":"Person","@id":"https:\/\/www.uni.lu\/snt-en\/#\/schema\/person\/7f5186b4d6fc7de90b6fe3fc98f170ce","name":"Geeta","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.uni.lu\/snt-en\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1e2ee5c3efd624acfb14f7cd04d93d50?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1e2ee5c3efd624acfb14f7cd04d93d50?s=96&d=mm&r=g","caption":"Geeta"}}]}},"blog_id":5,"_links":{"self":[{"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/news\/5837"}],"collection":[{"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/users\/326"}],"version-history":[{"count":3,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/news\/5837\/revisions"}],"predecessor-version":[{"id":19113,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/news\/5837\/revisions\/19113"}],"wp:authorship":[{"embeddable":true,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/users\/326"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/media\/5838"}],"wp:attachment":[{"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/media?parent=5837"}],"wp:term":[{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/news-category?post=5837"},{"taxonomy":"news-topic","embeddable":true,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/news-topic?post=5837"},{"taxonomy":"organisation","embeddable":true,"href":"https:\/\/www.uni.lu\/snt-en\/wp-json\/wp\/v2\/organisation?post=5837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}