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1.2 – What Is ChatGPT and Why It Matters for Business Lesson

Discover what ChatGPT is, how it works, and the reasons it’s become useful for small business owners and entrepreneurs. This lesson explains the versions of ChatGPT and how it compares to other AI tools, setting the foundation for practical business use. For an overview of these basics and how you can start using ChatGPT, refer to the video that goes alongside this lesson.

What you'll learn

  • Understand what ChatGPT is and how it operates as a conversational AI

  • Identify the main business tasks ChatGPT can support, such as writing and planning

  • Recognize the differences between the free and paid ChatGPT versions

  • Evaluate when upgrading to ChatGPT Plus or Pro might make sense

  • Compare ChatGPT briefly to alternatives like Claude, Gemini, and Perplexity

  • Navigate the basic ChatGPT interface to start your first business prompt

Lesson Overview

ChatGPT is an AI tool created by OpenAI that’s designed to respond to prompts and chat in a conversational way. You can type questions, ideas, or tasks into a chat window and get back instant responses that are clear and often surprisingly helpful. ChatGPT stands out because it isn’t just a search engine; you can ask for rewrites, more examples, or different approaches, making your interaction feel natural and productive as you clarify your needs.

For business owners and entrepreneurs, ChatGPT can take on routine but time-consuming tasks. Examples include drafting emails, summarizing content, brainstorming marketing ideas, or helping to organize your workflow. These features can free up your time and help you generate new ideas or complete repetitive business work more quickly.

This lesson also introduces you to the different versions of ChatGPT—from the free plan to paid subscriptions—and briefly touches on other AI tools like Claude, Gemini, and Perplexity. While each of these platforms has its own features, ChatGPT is often the best starting point for small businesses due to its simplicity and broad capabilities. Understanding your options and how ChatGPT fits into common business tasks will help you decide the right tools for your needs.

Who This Is For

If you’re looking to save time and improve everyday business tasks using modern tools, this lesson is well suited for you. You will find this lesson useful if you are:

  • A small business owner exploring ways to automate writing or content creation
  • An entrepreneur interested in AI for planning, organizing, or brainstorming
  • A marketer seeking new ways to develop ideas or communicate with customers
  • Anyone curious about how conversational AI tools can make daily business work easier
  • Individuals comparing options before choosing an AI assistant for their team
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Where This Fits in a Workflow

Understanding ChatGPT and its business relevance is an essential first step before you start using AI for specific tasks. This lesson prepares you to decide when and how ChatGPT can fit into your daily workflow—whether that means quickly generating a rough draft of an email, summarizing meeting notes, or bouncing around fresh ideas for social media.

For instance, after learning the differences between free and paid ChatGPT versions, you’ll be better equipped to choose the service level that matches your workload and needs. If you find yourself often at your usage limit, you may consider ChatGPT Plus for higher capacity or additional features. This first step lays the groundwork for all following lessons where we’ll tackle hands-on business tasks using ChatGPT in real scenarios.

Technical & Workflow Benefits

Using ChatGPT for everyday business activities gives you faster results compared to handling things manually. For example, rather than spending 20 minutes trying to write a customer response from scratch, you can get a solid draft in seconds and simply tweak it to match your style. The basic (free) version supports a wide range of tasks, and upgrading unlocks even more features with higher daily limits—avoiding interruptions during busy workdays.

With AI, brainstorming sessions speed up, content output increases, and you can automate routine emails or plans with more consistency. Compared to juggling multiple AI tools, starting with ChatGPT gives you one simple place for writing, research, and even image generation. If your business grows or your needs become more advanced, knowing about alternative tools like Claude or Gemini helps you expand without switching your workflow. For most users, ChatGPT’s ease of use and flexibility deliver clear time savings and better work quality.

Practice Exercise

Try opening a ChatGPT account, or log in if you already have one, and test its core functionality by setting up a simple business task:

  1. Go to chatgpt.com and sign up with your email or a Google/Microsoft/Apple account.
  2. Once inside, type a prompt such as, “Write a short follow-up email to a customer who made a recent purchase.”
  3. Review and edit the response to fit your business’s tone or style.

Reflection: How quickly did you get a usable draft compared to writing it manually? What would improve the output, such as being more detailed in your prompt?

Course Context Recap

This lesson introduced what ChatGPT is and why it’s an important tool for small businesses and entrepreneurs, building your understanding before you use it for real tasks. Previously, you learned how the course is structured and what you can expect to accomplish. Next, you’ll put this knowledge into practice as we cover how to use ChatGPT to write faster, more personalized emails. Continue exploring these lessons to see how ChatGPT can transform your business routine with practical, hands-on skills.