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Text Classification and AI: GPT 3, GPT 4 and More

Peter Szalontay
November 23, 2023
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Introduction to text classification

The modern business landscape is awash in data, surpassing anything previously experienced. The sheer volume of text data processed by today's companies is unprecedented. While certain tasks, such as those in legal and accounting domains, demand the expertise of seasoned professionals, others call for fundamental techniques like grouping, filtering, and analysis.

The surge of processing data in the form of text was the biggest reason why decision-making as a whole became much more data-driven in recent years. Text-based information is widely used by businesses to acquire insights into operational efficiency, market trends, and customer behavior. This data-centric approach has revolutionized a great number of industries, including retail, finance, manufacturing, healthcare, and more. 

However, not all tasks require the same level of competency and knowledge. Some processes, such as extracting key information from customer reviews or identifying trends in social media discussions, can be handled with basic grouping, filtering, and analysis techniques. These tasks can be automated using data processing tools and algorithms, freeing up skilled professionals to focus on more complex and nuanced analyses.

Text classification (text data processing), a vital component of Natural Language Processing (NLP), has emerged as a powerful tool for addressing various business challenges, particularly in the realm of data management. This technology plays a crucial role in effectively organizing and analyzing large volumes of unstructured text data, such as emails, messages, and support requests.

Automatic text classification was fueled by two major technology branches – Machine Learning and Natural Language Processing. Both of these technologies represent a specific part of Artificial Intelligence as a more of an overarching term. These technologies enable the intelligent categorization of text based on its inherent sentiment, extracting valuable insights from seemingly unorganized data.

The automation of text classification processes has transformed the way businesses handle data, saving significant time and resources. By automating the classification of vast amounts of text, companies can streamline their operations, enhance productivity, and gain valuable insights into customer sentiment, market trends, and potential areas for improvement.

The ability to accurately categorize text data empowers businesses to make informed decisions that drive strategic growth. By leveraging text classification, companies can effectively manage customer interactions, optimize marketing campaigns, and identify potential risks or opportunities within their operations.

Text classification stands as a cornerstone of Machine Learning, empowering the automatic categorization of open-ended text into predefined categories. This versatile technology can organize, structure, and classify a wide range of text data, including articles, medical research, customer tickets, and online content.

While it is true that businesses are now working with more data than ever, most of that data is usually unstructured. This vast and ever-growing volume of unstructured data poses a challenge for businesses seeking to extract meaningful insights. Traditional manual methods of processing this data are both extremely expensive and consume a lot of time for larger data sets. 

To address this challenge, automated text classification tools have emerged as a powerful solution. These tools harness the combined strength of Natural Language Processing and Machine Learning to structure and analyze massive amounts of text data in a timely and sustainable manner.

The importance and advantages of text classification

Harnessing the power of text classification empowers businesses to unlock the untapped potential of unstructured data. Text classification tools provide organizations with an efficient and cost-effective solution for organizing and analyzing a wide range of text formats, including emails, legal documents, advertisements, databases, and other forms of written communication. 

This capability enables businesses to streamline operations, save valuable time, and make informed decisions guided by relevant data insights. For example, crash reports can be automatically sorted and categorized based on the nature of the problem using general-purpose words such as “freeze”, “not responding”, “loading”, etc.

Advantages of text classification as a methodology

Text classification offers a plethora of benefits for businesses seeking to optimize their operations and gain valuable insights from their data. By automatically categorizing and analyzing unstructured text, businesses can achieve a range of objectives, including:

  • Real-time brand sentiment tracking: Automated text classification tools can monitor online conversations and social media mentions in real-time, providing businesses with immediate insights into brand sentiment. This kind of continuous monitoring offers the ability to quickly respond to potential issues.
  • Optimizing user segmentation: Text classification can be used by businesses to separate their audience into groups based on specific factors – made possible by analyzing information such as preferences and language patterns. This granular segmentation enables tailored marketing campaigns and targeted messaging, maximizing the effectiveness of advertising efforts.
  • Eliminating human error: Unlike humans, machine learning algorithms consistently apply the same rules and parameters to data analysis, minimizing the risk of errors. This consistency ensures reliable and unbiased results, offering a solid ground for many business-related decisions.
  • Identifying customer pain points: Text classification can effectively identify and categorize customer service requests, providing businesses with a comprehensive overview of the problems users are facing. This enables product teams to prioritize their efforts and address customer concerns promptly, enhancing customer satisfaction and retention.
  • Uncovering feature development opportunities: Text classification can uncover valuable feedback from user interactions, such as social media posts, reviews, and support requests. This feedback serves as a rich source of inspiration for product development, enabling businesses to prioritize features that genuinely address user needs and enhance product value.

The mechanics behind text classification

Text classification can be approached in two primary ways: manual and automatic.

In manual text classification, a human observer carefully evaluates the content of the text and assigns it to the appropriate category. Human reviewers must meticulously examine each piece of text, making it impractical for large volumes of data. It can be a very useful process, but it is extremely ineffective in terms of both resources and time. 

Automatic text classification, on the other hand, harnesses the power of Machine Learning, Natural Language Processing, and other artificial intelligence techniques to categorize text with greater speed, efficiency, and accuracy. Automatic text classification solutions are capable of analyzing and categorizing massive amounts of data with the help of various statistical models and algorithms. 

Since this article revolves around text classification automation with the help of Artificial Intelligence, our main focus here would be on automated text classification methods. There are three main categories of automated text classification methods:

Text classification based on rules

Rule-based techniques, employing various linguistic principles, categorize text into structured categories. These rules are used to identify specific categories based on their contents by analyzing text components that are semantically relevant. Each rule comprises two components: a pattern and an associated category.

While rule-based systems may appear straightforward to set up, achieving accuracy requires thorough testing and refinement. Additionally, crafting these rules can be intricate, demanding extensive domain knowledge specific to the defined categories. However, once testing is complete, the time previously allocated to manual categorization becomes available for more valuable endeavors.

Rule-based techniques offer a structured and transparent approach to text categorization, providing advantages such as explainability, flexibility, and efficiency. However, their reliance on extensive domain knowledge and potential difficulties in handling ambiguities warrant careful consideration for specific applications.

ML-based text classification

Machine Learning-based text classification approaches differ from rule-based methods in that they derive classifications from prior observations rather than relying on predefined rules. ML algorithms analyze training data, which consists of text examples paired with their corresponding tags (categories), to identify patterns and correlations between text features and their associated tags.

As the ML model is exposed to a sufficient amount of training data, it develops the ability to accurately predict the tags for new unseen text inputs. This ability to generalize from learned patterns makes ML-based text classification more efficient and accurate than manual rule-based methods.

Moreover, ML classifiers are inherently flexible and adaptable, allowing them to handle new text classifications by simply incorporating additional labeled examples into the training data. This continuous learning capability ensures that ML models remain relevant and up-to-date even as language usage and communication patterns evolve.

Some of the most widely used ML algorithms for text classification include:

  • Support Vector Machines (SVMs): SVMs are powerful classification algorithms that effectively separate text data into distinct categories by finding optimal hyperplanes in the feature space.
  • Deep Learning (DL): DL algorithms, particularly recurrent neural networks (RNNs), excel at capturing long-range dependencies within text data, making them well-suited for tasks such as sentiment analysis and topic modeling.
  • Naive Bayes Classifiers: Naive Bayes classifiers are probabilistic models that rely on Bayes' theorem to estimate the probability of a given text belonging to a particular category based on its observed features.

Mixed text classification systems

Combining rule-based and machine learning (ML)-based text classification techniques has emerged as a promising approach, yielding even more precise results. Hybrid systems harness the strengths of both methodologies, leveraging the interpretability and domain knowledge of rule-based systems with the data-driven adaptability of ML algorithms.

By incorporating specialized rules for edge cases or ambiguous text that the underlying ML classifier may not handle effectively, hybrid systems can significantly improve overall classification accuracy. Additionally, the combination of rule-based and ML approaches can substantially reduce the amount of labeled data required for training, alleviating the resource-intensive task of manual labeling.


Deep Learning algorithms is something we have mentioned before as one of the possible variations of an ML-based text classification. In this context, it would be logical to mention ChatGPT – one of the most popular names behind the recent AI popularity explosion.

ChatGPT, a large language model (LLM) chatbot created by OpenAI, emerged in November 2022, marking a significant leap forward in chatbot technology. Built upon the foundations of GPT-3.5 and GPT-4 language models, ChatGPT boasts enhanced versatility and usefulness compared to its predecessors.

ChatGPT's capabilities extend far beyond mere conversation. Its main specialization is in generating text in many different forms – emails, poems, letters, scripts, etc.  Additionally, ChatGPT's multilingual proficiency enables seamless language translation, broadening its reach and potential applications.

Beyond its creative prowess, ChatGPT serves as a valuable tool for information retrieval and content generation. Its ability to answer questions in an informative way makes it a reliable source of knowledge. Moreover, ChatGPT's capacity to generate different kinds of creative content, from scripts and musical pieces to emails and letters, opens up a world of possibilities for creative expression and communication.


As we have mentioned before, GPT-3 and GPT-4 are large language models that ChatGPT is built upon, offering comprehensive text generation performed with the power of deep neural networks. GPT-3 is a slightly older version of the model, and yet it is barely a year old at this point. Nevertheless, GPT-3 alone has been a massive step forward in terms of coherent text generation, making it extremely relevant in the text classification category.

Leveraging GPT-3 for text classification tasks involves fine-tuning the model on a smaller, task-specific dataset to enhance its ability to accurately categorize documents. This process entails training GPT-3 to infer the category of a document based on the content it contains. By effectively capturing the nuances and patterns within the training data, GPT-3 can develop a robust understanding of the classification task.

Furthermore, GPT-3's capabilities extend to generating labels for new documents, a feature that proves particularly useful in automating the categorization process. By analyzing the content of unlabeled documents, GPT-3 can assign relevant labels, enabling seamless integration into automated workflows. This capability significantly reduces the need for manual labeling, streamlining the categorization process and enhancing overall efficiency.


GPT-4 is, as the name suggests, a successor of GPT-3 that is supposed to be the better version of the model. It would be difficult to say that GPT-4 does not evolve at all compared with its predecessor – it is faster, more accurate, more aware of the context, and so on.

It would be safe to say that GPT-4 succeeds in improving GPT-3’s results on all major factors. It uses far more parameters as its learning material (1.5 trillion, compared with GPT-3’s 175 billion), it can work with context far better in comparison, and it is also far more accurate than ever before.

Additionally, the model in question deals a lot better with unfamiliar instructions and prompts, and it can even process materials that are other than text – such as code or images. Plenty of services use GPT-4 as a basis for text classification templates that are easy to work with, accurate, efficient, and so on. 

A “Fast API endpoint for Text Classification using GPT” template from Lazy AI is one such example. It uses a no-code API implementation to allow for extensive text classification with the help of GPT-4. All of its parameters and preferences can be found using the link above.

Text classification examples and categories

There are many situations that an AI text classification tool can be useful in. This includes both internal business-specific examples and external use cases for marketing and moderation purposes.

  • Trend detection for customer feedback

Unraveling trends and patterns from customer feedback, encompassing product reviews, NPS ratings, and survey responses, is a laborious and time-intensive endeavor. However, ML models have emerged as a transformative force, automating the process and providing a wealth of actionable insights.

By harnessing the power of ML, businesses can effortlessly extract valuable insights from customer feedback, unlocking a treasure trove of information that would otherwise remain hidden amidst the vast sea of unstructured text data. This newfound understanding of customer sentiment, preferences, and pain points empowers businesses to make informed decisions that drive improved customer satisfaction, enhanced product offerings, and ultimately, business growth.

  • Moderation of online content

Online content moderation serves as a crucial mechanism for establishing and enforcing predefined guidelines and policies governing user-generated content. These guidelines are implemented and automated through AI-powered content moderation techniques.

Natural Language Processing (NLP) algorithms play a pivotal role in deciphering emotions and comprehending the intended meaning of written text. Sentiment analysis, a prominent NLP technique, enables the identification of the underlying tone of communication, classifying it as bullying, rage, abuse, irony, or other sentiments. This classification further categorizes the content as positive, neutral, or negative.

Entity recognition, another AI-driven content filtering tool, excels at extracting names, places, and businesses from user-generated content. This method provides valuable insights into brand mentions across various websites, enabling businesses to track their online presence and reputation. Additionally, entity recognition can reveal the geographical distribution of customer reviews, providing valuable demographic data for targeted marketing campaigns.

  • Sentiment analysis

Sentiment Analysis stands as a powerful tool for deciphering the emotional undertones of written text. Sentiment analysis algorithms are capable of determining if a specific text piece content conveys a positive, negative, or neutral sentiment towards a particular topic or entity. These algorithms are using both contextual nuances and language patterns to achieve rather impressive accuracy as a whole. This capability makes it possible for both individuals and companies to acquire plenty of insights – be it brand perception, customer satisfaction, public opinion,  and even the overall sentiment towards a specific product or service. 

  • Support tickets

A significant portion of support teams' time is dedicated to manually categorizing inquiries, tracking unresolved issues, and identifying customer pain points. Text classification emerges as a game-changer, automating these tasks and liberating support teams from time-consuming manual efforts.

By harnessing the power of text classification, support teams can save countless hours and eliminate the need for tedious manual categorization. Automated classification systems can efficiently categorize incoming inquiries based on their content, ensuring that they are promptly routed to the most appropriate team or agent for handling.

Additionally, automated responses generated based on message categories can provide customers with prompt initial assistance, while simultaneously reducing the workload for support agents. These automated responses can address frequently asked questions, provide basic troubleshooting steps, or direct customers to relevant resources, freeing up agents to handle more complex inquiries.

  • Language detection

Language detection, a form of text categorization, serves as a versatile tool with a wide range of applications. These classifiers possess the remarkable ability to identify the language used in textual data, enabling them to perform a variety of tasks that enhance efficiency and streamline operations.

For companies operating in the global marketplace with local teams scattered across different regions, language detection proves to be an invaluable asset. By accurately determining the language of incoming customer support tickets, companies can effectively route these inquiries to the appropriate teams, ensuring prompt and efficient resolution in the customer's preferred language.

Furthermore, language detection can revolutionize data management for local teams. By automatically classifying documents based on their language, companies can effortlessly organize and retrieve information, eliminating confusion and facilitating seamless collaboration across teams. Additionally, language detection can help filter out irrelevant messages written in languages not utilized in daily operations, reducing noise and streamlining communication channels.

The future of text classification in combination with AI

The analysis of unstructured text data, a relatively new field of study, has gained significant traction in various industries, including marketing, product management, education, and administration. This methodology, known as text analysis, offers a powerful tool for extracting valuable insights from vast amounts of text data, enabling businesses to make informed decisions and optimize their operations.

Text classification, a subset of text analysis, is essential when it comes to transforming plain text into data that can be interpreted, analyzed, and used for decision-making. This automated process eliminates the need for time-consuming manual categorization, so that businesses have more time to pursue various growth opportunities and strategic initiatives. 

Automated text classification is capable of providing businesses with a deep understanding of customer sentiment while also perceiving hidden patterns and emerging trends. This enhanced understanding empowers businesses to make proactive decisions that address customer needs, improve product offerings, and enhance overall business performance.

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