You must be hearing the term ‘ChatGPT’ a lot these days. Do you have any idea what it is? Though you must have encountered chatbots many times while scrolling any website on the internet. These are used to assist visitors with the right information instantly.

But now, there has been introduced ChatGPT which is said to be smarter than any of the available chatbot apps. This revolutionary AI-powered solution has amazed people all around the world and got popularity in very less time. The worldwide recognition of ChatGPT is the reason why businesses are keen to get chatbot development services.    

This new and advanced solution has facilitated people to generate any type of content in seconds. It is also called a language-based model enabling better human interaction. Well, to know about it more, you must read the below write-up.

The blog comprises all the details about what is a chatbot AI or ChatGPT, how does it work, use cases, market statistics, limitations, and many more. Without any further ado, let’s navigate to it-

What is ChatGPT?

Chat Generative Pre-trained Transformer (ChatGPT) is called the brainchild of an Artificial Intelligence company, OpenAI. It is also known as an autoregressive language model that uses deep learning techniques to generate more human-like content. It is built on the transformer architecture and is used to assess the ability of the chatbot to recognize and act precisely to users’ concerns.


In layman’s words, ChatGPT is simply an AI solution that is able to manage all types of requests to create texts of different lengths according to the customers’ demands. The app is able to generate product descriptions, news summaries, problem solutions, stories, social media content, and so on. Chatting with the bot doesn’t come with the guarantee to solve the problem in a definite way, hence, the ChatGPT is invented to support inquiries most effectively.

The AI Chatbot app was launched by Sam Altman along with Elon Musk in the year 2015. Elon Musk left the project later. After some time, Microsoft invested a big amount in the project ChatGPT that was preceded by Bill Gates and they re-launched it on November 30, 2022, as a prototype.

The CEO of the OpenAI development company, Sam Altman has stated that the app has got over 2 Million users now and the number is still running fast. It is forecasted that it will soon get a large user base.           

How is ChatGPT Actually Trained?

We have read that ChatGPT OpenAI is created to provide a fast and detailed response to customers’ queries regardless of any specific sector. The ChatGPT API is developed in a way that it delivers natural answers to all the questions that too in a conversational tone.

Do you want to know the reason how ChatGPT does it or how the system works in ChatGPT? Let’s get to know about that but first, get an understanding of GPT-

G– It represents Generative implies an initiator or producer.

P It stands for pre-trained that simply leads it doesn’t need any kind of training or learning.

T It denotes a transformer that is an ML model to identify certain content.

ChatGPT is based on the GPT-3 model including semi-supervised learning algorithms by Machine Learning programmers and data scientists. The OpenAI GPT-3 model is considered a neural network crafted to simulate data processing by the human brain. It is the largest language model ever as it has 175 billion parameters. In ChatGPT, GPT requires to be trained for a large quantity of text.

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ChatGPT is currently working on the transformer architecture that facilitates the processing of a big amount of data and learning to execute the tasks of natural language processing proficiently. The app is pre-trained for a huge dataset of text that makes it able to answer questions relevant to particular subjects.

They can also fetch the data from user interaction and adapt the answers in a conversation. Generating human-like responses is one of the key aspects of why ChatGPT is famous worldwide. The app sometimes acts like ChatGPT Chatbot and sometimes like a voice assistant system to augment the users’ experience.

The responses by the AI chatbot whether it is through emails, texts, or reminders can be better via the GPT-3.5 language model as it has a better understanding of a chat context. To consider, GPT-3.5 doesn’t need any advanced training for conversational texts.

Explain the Working of ChatGPT

ChatGPT is considered one of the top AI development trends that are occurring as a powerful solution for businesses and individuals. Though this AI chatbot platform is gaining immense popularity and providing numerous benefits to people, still there is a large population who are grappling with how to use ChatGPT.

For them, here we are providing step-by-step information that will help you easily use ChatGPT.

Check out the following points –

  • Users must create an account first. Hence, you need to visit the official website Chat.Openai.Com.
  • There you will get two options comprising Login and Sign Up, then, you need to click on the ‘Sign Up’ button to get registered.
  • To signup, fill in your details using your Microsoft account, email, or Gmail ID. Then, continue to create an account. After that, you need to choose a login method.
  • Then, you must verify the created account via a sent link to the email ID.
  • After that, enter your first & last name along with the mobile number. Then, you must verify the number as well.
  • Now, you have successfully created an account on ChatGPT.
  • After creating an account, you will get permission to its introductory page including information about limitations, functions, methods, and so on.
  • You can insert your queries in the chat box to get solutions. Then, it will provide you with results in a conversational tone.
  • ChatGPT stores your data and also admits if there is something beyond its capabilities.

ChatGPT: Global Market Growth and Statistics

Not only technology, but businesses have also grown with time. They are adopting new trends with open arms and it is the reason why there have been occurred so many digital transformation trends for businesses. We can say that ChatGPT is also one of them. It is the only app in the last two decades that has got one million users in just five days.

Be it top Chatbot alternatives or any other social media app, they all have taken much longer time than ChatGPT to reach 1 million. Below, we have provided a comparison graph that shows the time taken by apps to hit a million user base.

Also, there are a large number of people who have searched mobile applications applying keywords like ChatGPT and Chatbot in the search bar between the time of January 1, 2023, to Jan 11, 2023. In the wave of Chatbot AI’s ChatGPT, various mobile apps are getting benefits by using these keywords. Have a look at the below representation to see the number of app downloads with these keywords.

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ChatGPT has also got a little benefit from the popularity of Chatbot software as people already knew what are chatbots. But after the arrival of ChatGPT, the market size of Chatbots has also increased.

As per the current reports, the online chatbot market globally is predicted to grow between the years 2018 to 2027. In 2027, it is forecasted to evolve at $454.8 million in revenue which is quite a jump from $40.9 million in the year 2018. Have a look at below graph-      

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Here are some of the key Chatbot statistics you need to consider-

  • There are 69% of the users prefer Google AI chatbots as they want to solve their queries instantly.
  • 62% of the people will choose to use an online chatbot rather than wait for a human assistant to get a reply.
  • 48% of online users have a preference for a chatbot that can quickly solve their issue over one with a good personality.   
  • It is noted that 64% of consumers consider flexible services the most needed function provided by Google Chatbot.
  • 65% of consumers feel more comfortable with an AI chatbot rather than a human assistant.  

Reasons Why ChatGPT Got So Much Popularity

Businesses are wholeheartedly integrating OpenAI API to get access to GPT-3 and other conversational AI apps to get benefits from them. Though chatbots have been in the interest of businesses for a long time but they had some limitations that have been defeated by the ChatGPT.

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It provides human-like responses to a different range of queries and requests. Other than that, some of the potential reasons behind the popularity of ChatGPT are-

1. Broad Range of Language Inputs

Artificial Intelligence Chatbots are able to take different language inputs, no matter how complex they are. The AI chatbot coding is done in such a way that it can understand and deliver responses to a broad range of inputs with the help of a wide human language dataset. It makes the ChatGPT enable to manage users questions quickly.     

2. Ability to Learn & Understand

Enterprises are using Chatbot extensions as it is more capable to meet users’ needs. The more users’ responses it processes, the more efficiently it gets to know about their requirements. It directly indicates that over time, it will become more proficient and effective to learn and understand what users want exactly.

3. Facilitate Fast App Development

ChatGPT includes appealing UI and pre-trained NLP models that are helpful to build chatbot applications fast. AI is not prompt only for suitable outcomes. It can be beneficial for developers to guide them or correct errors. With this, ChatGPT helps dedicated developers to work in a human-machine hybrid mode.  

4. Cost-effective

It is the foremost advantage of using ChatGPT that it helps businesses to alleviate the costs related to resources, staff, and training processes. This pre-trained app contains a large dataset of text; therefore, it can manage all the customers’ queries without the help of any additional employees. It is more beneficial for ventures active in competitive industries.  

5. Better User Experience

Using ChatGPT development solutions, enterprises are capable of having more natural, fast, and human-like interactions that improve customer experience, loyalty, and satisfaction. When businesses provide personalized and related responses to customers’ queries, it augments their experience which is the key factor to drive long-term success and growth.

6. Flexibility

AI chatbot extension can be integrated with different marketing channels comprising mobile apps, websites, and social media platforms. It benefits marketers to get connected with their clients in places where they feel comfortable and engaged. It enhances the overall consistent and smooth experience across different channels.

7. Improved Efficiency

Automating time-consuming and repetitive tasks can help employees a lot as they get more time to concentrate on other valuable activities. For instance, Chatbot online can handle customers’ queries better and provide them with the response they want more effectively and fast. It also facilitates marketers to manage multiple customers simultaneously.   

8. Market Differentiation

Nowadays, businesses are getting more benefits by using intelligent automation systems via adopting AI chatbot websites and apps that help them to gain a competitive advantage over their competitors in the worldwide market. It leads to various benefits such as improved decisions, better customer services, and efficient process automation. It is why businesses are keenly embracing chatbot applications.

9. Better Decision-making

Automation has assisted ventures to access, process, and identify large sets of data in real-time and it has been very easy with the arrival of ChatGPT. It is one of the most popular custom software development trends that has taken over the market in very less time. This OpenAI GPT-3 has helped endeavors to improve decision-making that leads them to use the data in a more useful way to make cognizant business decisions.  

Is ChatGPT Free To Use?

Yes, the core version of ChatGPT is currently free-to-use for people as it is still in its testing phase. OpenAI wants to use the users’ reviews to improve ChatGPT in the future. But it’s not free for OpenAI as they spend about $3 million monthly to run the software which costs around $100,000 daily.  

Though, there is an announcement by OpenAI that they will launch the ChatGPT Pro version with added benefits that will be a pay-to-use version. It is also said that the version will cost $20 monthly including features like fast load time, priority access, and many more. But for now, enjoy the free Chatbot.  

Top Features of ChatGPT

Some amazing features make the free chatbot ChatGPT worth using. Various businesses who are thinking to obtain AI Chatbot marketing, sales, customer support, or others must know about these in order to get the maximum use of AI systems including NLP. Check out the following features-

1. Automation

Automation feature is used to program the tasks automatically that have been performed previously with the help of Artificial Intelligence and Machine Learning. Automation facilitates businesses with lower operating costs, improved ROI, and others.  

2. Personalization

The best AI chatbot is considered the one that can provide personalized recommendations and answers to users to improve their experience and gain their attention instantly. It helps in predicting human inputs and generating responses that can be a time saver for support teams and other employees.

3. Multilanguage Support

Making Chatbots understand different languages can lead to the solution getting a huge customer base in no time. Multi-language support features ensure to get a user base from different cultures and regions all over the world. Everyone can easily use the app in their own language.

4. Fine-tuning

ChatGPT can be set on the fine-tuning for particular conversational tasks including text generation, language understanding, and text summarization that make the app more efficient to manage the users’ queries.

5. Easy Communication

To create the best chatbot AI solution, it is necessary to make it respond fast and fluently to customers’ questions. It must be able to generate human-like text and manage both long and short texts including diverse kinds of expressions, irony, sarcasm, and many more.

6. Scaling

ChatGPT is capable to handle large-scale datasets and intricate calculations, all this is possible with the help of distributed computing. This efficiency helps to increase the scalability of ChatGPT.

7. Batching 

The ChatGPT app can deal with batch input and output which indicates its ability to cope with numerous urges and provide multiple responses at one time. It directly enhances the app’s efficacy and decreases latency. 

What are the Limitations of ChatGPT?

The arrival of ChatGPT has shaken the technology world and appears as the most powerful tool till now. Even businesses are going for chatbot builders to create the best chatbot using NLP. ChatGPT has an immense ability to learn, understand, and respond to difficult language inputs by users and that makes it an ideal choice for endeavors.

But do you know there are still some limitations that need to be overcome? Get to know about them below –

  • Sometimes, ChatGPT is not able to catch the real-time variety of languages, cultural differences, and experiences despite having a large database. Thus, it can lead to provide out of context responses.
  • The ChatGPT-3 model pulls power from various assets. It clearly depicts that it can be limited to only high-powered devices or specific ones.
  • ChatGPT uses ML algorithms trained by the datasets, hence, we can’t be sure about the accuracy of the provided responses. They can be biased or inaccurate depending on any parameter.
  • ChatGPT only has a database till 2021 and doesn’t provide any information about the events post-2021. This is the biggest drawback till now.
  • It is stated that currently, the model costs $3 million monthly to operate which is not suitable for the long run. It directly indicates the higher AI chatbot development cost for businesses.
  • The ChatGPT is not able to make qualitative assessments comprising differentiation between good or bad, identifying offensive content, and so on. It is only dependent on the pre-trained data and can’t understand other aspects like sentiments.   

If we talk about the past few years, market giants like Google, Microsoft, Facebook, etc. have said that digital assistance will be the future of technology. When it comes to chatbot applications, we can see it has become a necessity at present.

Whether it is taxi rides, food ordering, booking tickets, planning a trip, or getting information, if anyone is stuck somewhere, they take help from these assistants and get the solution within seconds.


Now, let’s come to the point ‘will ChatGPT replace Google Search’, so we will say everything is possible but it will be too soon to jump to any conclusions. Google operates with LLMs (large AI language models) that are no less than OpenAI’s ChatGPT. These models comprise MUM, BERT, and LaMDA.

Over the years, Google has improved its search engine a lot and knows better what users want. It is the one that has introduced people to the possibilities of Chatbot but has also limited its uses.

On the other hand, OpenAI has also created its LLM technology and then, launched the ChatGPT for public use. And now, we have witnessed its popularity currently. Even, there are a lot of companies that want to develop Chatbot like apps with more features, no matter how much custom software development cost.  


All the hype created for ChatGPT has made everyone think that it will take over the Google Search engine soon but we don’t think that the technology is completely ready for this yet. There are still a lot of things that it needs to fix. Till then, we can just wait and see how much potential ChatGPT holds!

Why SemiDot Infotech is the Best Option to Go for Chatbot App Development?

Creating and implementing AI chatbots is a whole level different thing and it completely relies on the web or mobile application development company you are hiring. If you are convinced that implementing your own chatbot will benefit your organization in numerous ways, then the next step you must follow is to hire AI developers from a reliable agency. As a business, you must be aware of the changing preferences of users, hence, you must act and modify the solutions accordingly.

ChatGPT is also one of the trending solutions enterprises want to acquire to beat their competitors. SemiDot Infotech can prove to be your perfect companion in this journey. If you are a tech geek and always eager to experiment with new technological solutions for your business growth, come to us and we will help you in every possible way. We are working in the industry for more than a decade and know every essential dimension to include in a solution.

Our development team follows a proper software development guide to create a perfect AI chatbot according to your business vision. We deliver custom chatbots with great AI capabilities facilitating businesses to provide personalized responses to customers.


We powered chatbots by using machine learning APIs like LUIS (Language Understanding Intelligent Service) that monitor daily conversations of users to provide them with relevant information and augment their experiences. If you have been asking yourself lately, should I go for hiring an AI chatbot development company, then I think you have got your answer!

In Essence

The rapidly growing user base of ChatGPT depicts that it has come to stay longer in the market. The next version of ChatGPT is said to be updated with more advanced features with improved accuracy and potential. Before using ChatGPT, businesses must know how they can get the most out of it using their creativity. To do so, they need to get the assistance from top software development companies in the USA that has both expertise and experience.

As we have mentioned ChatGPT is well-suited for different kinds of applications such as content generation, chatbots, language translation, and many more, that’s why enterprises want to implement it as fast as possible to make more profit. This AI chatbot also offers various capabilities comprising question-answering, text summarization, etc.

All these services can’t be included without technical expertise, thus, ventures need to hire chatbot developers who have rich knowledge about Blockchain, Artificial Intelligence, Machine learning, and other required technologies and tools to create a competent solution.


If you have any queries related to ChatGPT or chatbot app development, look at the below FAQs:

  1. What is Machine Learning?

    Machine learning can be counted as an application of Artificial Intelligence that assists systems to understand & progress from experience without being programmed explicitly. Businesses prefer to hire machine learning development companies to get solutions that are used to perform difficult tasks similar to humans and solve any problem with more intelligence.

  2. What is a Chatbot?

    The chatbot can be considered a human program used to imitate human-like conversations via voice commands or text messages or both. These are implemented by businesses to assist their customers and solve their problems 24*7. It is helpful to engage customers while augmenting their experience.

  3. Who Made ChatGPT?

    In November 2022, the CEO of OpenAI, Sam Altman created ChatGPT. It is an organization situated in San Francisco. ChatGPT is built on GPT-3 model and fine-tuned with Machine Learning techniques.

  4. How does ChatGPT Work?

    ChatGPT is a virtual assistant using an aspect of Machine Learning called NLP (Natural Language processing). It has trained using Reinforcement Learning from Human Feedback. There is a huge data collection used to provide smooth answers. Users get the answers from human AI trainers in a conversational tone.

  5. How will ChatGPT Improve Human Life?

    ChatGPT has made human life easier than before as they get instant assistance about any subject. Be it any industry or sector, ChatGPT can assist people in identifying a large amount of data and analyzing trends & patterns. It can help in writing blogs, emails, scripts, social media posts, codes, debugging, and many others.

  6. Will This Put Writers Out of Work?

    There is not a definite answer to it as these tools will have to go a long way to put writers out of their jobs. The tool still doesn’t have that much amount of creativity and ideas needed to replace human authors completely.

  7. What Kinds of Questions Can You Ask On ChatGPT?

    ChatGPT has answers to all the things you want to know. You can ask it about how to write a mail or script or any blog. You can also ask about how to book tickets. It provides answers related to any industry or anything you desire. The list is never-ending and so are ChatGPT’s capabilities.

  8. Can ChatGPT Write Code?

    Yes, ChatGPT can be used to write code or programs to create software or applications. It is also able to debug the code that can help developers or programmers a lot to fasten the development process while improving their work.

  9. Do You Need to Download ChatGPT?

    Downloading ChatGPT is not required as it is available through a webpage. You can visit the official site Chat.Openai.Com. All you need to do is to create an account and then, you can use it freely.

  10. Did Microsoft Invest in OpenAI?

    Yes, Microsoft has announced its multibillion-dollar investment in AI startup OpenAI. In 2019, Microsoft provided $1 billion in funding to OpenAI.

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