Paytm Founder Warns Of Nightmarish Consequences For Fraud Detection As ChatGPT Gains Prominence In Finance World

Paytm founder Vijay Shekhar Sharma on Wednesday pointed out that the rise in popularity of ChatGPT within the financial world could be a “nightmare” for fraud and money laundering prevention in the next 3-5 years.

What Happened? Sharma took to Twitter on Wednesday to state that with artificial general intelligence (AGI) gaining prominence in finance, dealing with fraudsters could turn far more difficult.

“AGI will generate more nightmare for fraud prevention than impersonation on calls and messages have,” noted the billionaire businessman. “Only the ones who build systems leveraging it will be able to counter some,” he added.

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Why it Matters? The tech entrepreneur’s concern arrives at a time when ChatGPT adoption among investors and institutions across the world grows rapidly. The AI tool is widely used to analyse prompted data and assess the creditworthiness of borrowers. ChatGPT can analyse factors such as income, credit history, and other data to determine the likelihood of loan repayment and set appropriate interest rates.

Since the tool leverages machine learning, and natural language processing to comprehend and respond to requests, it also reduces the likelihood of errors.

Already viewed as a super-intelligent chatbot, the tool is also gaining prominence among industry players. Industry giants like Microsoft and fintech firms like Stripe recently announced integrations of ChatGTP-4, while banks like Morgan Stanley Wealth have also publicly announced their internal adoption.

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