ChatGPT about the risks of SAAS solutions

      

Logo ChatGPT
The most acute problem - vendor lock-in combined with large price increases - is not mentioned. However, Gartner ("SaaS Dominates Software Contracting by 2026 — and So Do Risks") predicted back in December 2021 that the rapid growth in the market power of SAAS providers will have a significant impact on how companies deal with IT costs.

ChatGPT, a generative AI application, is currently a hot topic. Is this super app a worthy content creator or not? We put it to the test and investigate the application. Therefore, we check two issues. Can this AI robot reliably show us the risks of SAAS (Software as a Service) solutions and does the language in which you communicate make a difference? Read in this article the result of our experiment.

 

The language in which you communicate

We first ask our question in Dutch. At first glance, the result is, as expected, spectacular. See the screenshot for results. We get a neatly structured and sensible answer. And that of a machine! After a critical look, some disappointment follows. The first point ‘Dependence on internet connection’ is indeed correct, although we would not immediately mention this as the biggest risk.

As far as number 5 is concerned, the customization options of SAAS solutions are more limited compared to custom software. However, this does not necessarily apply versus software that you install on your own computer as the machine claims.

 

 

Furthermore, we had hoped to read something about vendor lock-in where the customer is dependent on the supplier because he cannot change supplier without substantial costs or inconvenience. Information on possible high price increases is also missing. That is why we ask whether it is not a risk that the provider can change the price.

 

 

The AI app’s answer makes sense but is of little relevance. After all, recent research shows that most SAAS contracts explicitly allow price increases. Intensive users who have a lot of data in the SAAS system, face high costs to move that data to another player. In other words, they have little power to counter the sharply rising price.

More quality in English

Then we try out the system in English. The quality of the output of such an AI system strongly depends on how well the system is trained. Of course, there is much more ‘learning material’ available in English than in Dutch.

As expected, the response in English is a whole lot better. Vendor lock-in is now explicitly mentioned and the list is more complete.

Although here too, the most acute problem,  vendor lock-in combined with large price increases, is not mentioned. However, Gartner (“SaaS Dominates Software Contracting by 2026 — and So Do Risks”) predicted back in December 2021 that the rapid growth in the market power of SAAS providers will have a significant impact on how companies deal with IT costs. 

What ChatGPT performs is spectacular. We are convinced that many possible applications will follow. It is best to keep in mind that the system does not ‘think’ itself. It generates output based on what has been inserted as ‘learning material’. That output may be completely unique, hence the name generative AI, but is not necessarily correct and thoughtful. Although this sometimes also applies to people.

 

 

 

 

 

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