Tech Savvy 101: AI & Automation Made Simple

[AI in Action] Claude vs. ChatGPT: Which AI Tool Is Best for Your Business?

• Sarah Baker • Episode 127

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Episode #127: [AI in Action] Claude vs. ChatGPT: Which AI Tool Is Best for Your Business? 

WATCH THIS EPISODE ON YOUTUBE

If you’ve only been using ChatGPT… you’re missing out.

This episode kicks off a brand-new AI Essentials mini-series, and we’re starting with one of my favorite underrated tools: Claude.

Claude is smart, simple to use, and incredibly good at things like writing, summarizing documents, and sounding like a real human. 

It’s become my go-to for content creation, brainstorming, and project planning — and in this episode, I’m walking you through exactly how to use it.

By the end, you’ll know how to:

  • Navigate Claude’s dashboard and features 
  • Upload docs, summarize reports, and organize your chats
  • Use Claude to create better content (with less back-and-forth than ChatGPT)

If you’re looking to get more done in less time, Claude might just be your new favorite AI assistant.


IN THIS EPISODE, I COVER:

➔ Why Claude is a powerful alternative (and complement) to ChatGPT
➔ How to use Claude for writing, research, and analyzing documents
➔ Real-world examples + pro tips to get the best results from this tool


RESOURCES MENTIONED:

📌 Claude → https://claude.ai/  

📌 Watch the YouTube Demo of Claude in Action → https://youtu.be/0oFKSzOl0ZU
 
📌 Join the Waitlist for AI Evergreen Content Machine → https://thesarahbaker.com/ai-evergreen-content-machine-waitlist

 📌 Want me to build you a Done-For-You Custom GPT? → https://thesarahbaker.com/dfy-custom-gpts


🎙️ RELATED EPISODES OF TECH SAVVY 101: AI & AUTOMATION MADE SIMPLE: 


⏱️ TIMESTAMPS:

00:55 – Getting Started with Claude
01:42 – Exploring Claude’s Inte

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Sarah Baker

Hey there. Welcome back to Tech Savvy 101: AI Automation Made Simple. I'm your host, Sarah Baker, your tech savvy bestie, who's here to help you simplify your business, embrace automation and save hours every week. Today I'm excited to kick off our AI Essentials miniseries, where we're exploring powerful AI tools beyond just ChatGPT. In this series, I'm sharing my screen and giving you hands-on tutorials of the most powerful and valuable AI platforms that can transform how you work and create content. If you're listening to this episode right now, don't worry, you'll find the YouTube link for the screen sharing tutorial in the show notes. Feel free to listen along right now and then grab the link afterward to see the visual demonstration. Each tool in this series offers unique capabilities that might be perfect for specific tasks within your business. By the end of this mini series, you'll have a complete AI toolkit at your fingertips, and know exactly which tool to use for different situations. In today's episode, we're diving into Claude, an incredible AI assistant that deserves way more attention than it's been getting. According to a recent survey by the Pew Research Center, 62% of Americans are now familiar with ChatGPT, but only about 18% have actually used it or another AI chat bot. When it comes to Claude, specifically, awareness is even lower, but those who use it often become strong advocates for it, and that's what we're gonna change in today's episode. By the end of this tutorial, you'll understand exactly what Claude is, how it compares to ChatGPT, and most importantly, I'll show you in real time how to use its powerful features to save time and create better content for your business. Let's dive in. Let me start by sharing my screen and showing you what Claude looks like. As you can see, I'm at claude.ai, which is where you can access Claude directly if you don't already have an account. Signing up is super simple. You can use your email, your Google account, or an Apple ID. The basic version is completely free to use, with certain limitations that we'll discuss later. Now that I'm logged in, let's explore the interface. As you can see, it's clean and very intuitive. If you've used ChatGPT, the setup will feel familiar, but with some key differences that I wanna point out. You'll see that if you hover over the word Claude in the upper left hand corner, your chats will pop up. This is your conversation history sidebar. You can organize and name your conversation. You can see all of your past chats and scroll down, and if you hover over the words, it'll pop up and you can go back to reference that previous chat. You can organize and name your conversations, which is super helpful for keeping track of different projects. You can also create folders for content ideas, research, and client work. At the bottom you'll see that there is a text box where you can type in your prompts. And then down here at the bottom you can see this is where you can access your account information and your settings. You can see that I currently have the professional plan. I use this a lot. So when you click on your email, this is where you will find your settings. You can enter information such as your profile, your appearance, if you want to edit any information such as personal preferences that Claude should consider in your responses, you can turn off capabilities and you can turn on feature previews. Claude just recently enabled the feature of being able to search the web, which is a game changer that it previously did not have. I'm very excited about this new feature, but you do need to enable it by toggling this on and the analysis tool, which you also need to toggle on. You can also connect your Google Drive if you want to be able to upload documents for Claude to be able to analyze. This is really helpful if you have large documents that you want to add to Claude for content purposes, for example, I upload things like my podcast transcripts so that Claude can help me to work on blog posts or if you want to upload information about your business, so Claude can help understand your brand voice. You need to be able to upload unless you wanna upload directly from your desktop. If you wanna be able to upload from your Google Drive, you need to connect your Google Drive and you would do that here. You can also connect your GitHub. So those are some of the other things. You can also edit the appearance by changing the font or the, you can set it to light mode, dark mode, or match the system depending on the time of day. You can also log out of all devices. There is a very helpful mobile app that I use frequently, and for any reason, if you wanted to delete your account, you could do that here or export all of your data. And you can edit your billing information from the settings as well. One of the first things to understand about Claude is that it comes in different versions. Like I said, right now I am using the paid plan. I think it is one of the best investments in my business that I have made. It is$20 per month. I think it is absolutely worth it. Claude 3.7 sonnet is a game changer. The quality of the content that I get out of Claude is fantastic. So if you upgrade to that, it is fantastic, and in my opinion, definitely worth it, especially for how much I use it on a daily basis. However, if you use the free plan, you are also going to get fantastic content. The difference primarily between the free plan and the paid plan is you get higher usage, priority access, you get access to some of the newer features sooner. And I find that based off of how much I use it, the higher usage limits is very important for me. One of the coolest things that I found is that Claude three Opus scored an impressive 86.8% on the MMLU, which is the massive multitask language understanding benchmark, which tests knowledge across 57 subjects ranging from math to law. For comparison, the average human college student scores around 89.8%, which means Claude is approaching human level performance on these tests. So let me show you how to start a new conversation and change between Claude's versions. When you're starting a new chat, all you're gonna do is enter in the box, just like if you're using ChatGPT. If you're already familiar with that, you would enter your prompt right here where it says, how can I help you today? If you want to change the version of Claude that you're using, similar to ChatGPT, all you have to do is click on where it says Claude 3.7. For me, it says 3.7 Sonnet because that's the version I'm using. And you can click and there's a dropdown like with ChatGPT, where you might be using 4.0 and you can click on that dropdown and select if you want to use. o1 or regular ChatGPT, and you can select and drop down. It's exactly the same. You can go to normal, which is best for most use cases. You can go to 3.5 Haiku, which is fastest model for daily tasks. Or you can go to extended, which is best for math and coding challenges. There are additional models. Opus, Sonnet, which is as of October 24. You can choose which model is best for the task that you are asking Claude to do for you. So that is just a dropdown right here, and you ask it your task and then choose which model is best for you. I typically stay in 3.7 Sonnet, and that one works really well for me. I tend to use Claude when I am working on creative content. Having it help me develop ideas for this podcast, having it help me write blog posts, having it help me with emails, content for my website, anything that's a very, word heavy is where Claude really excels. In my opinion, it knows my brand voice backwards and forwards, and I feel like the content that comes out of Claude sounds the most natural and requires the least amount of back and forth to really get content that shines. So for me, Claude is my go-to for copywriting. Obviously, as with everything else, I still put my own final touch on it. But when I get a rough draft out of Claude, I feel like it needs less back and forth to tweak it and massage it and get it to where I want it, and then I still go in and put my final human touch on it. So that is really where Claude shines. Now let me show you one of Claude's most powerful features, document analysis. This is something that really sets it apart from other AI tools. As you can see here, I can click the upload button and add documents to Claude for analysis. Let me show you how this works with a real example. You can either upload directly from your desktop using the paperclip, or you can upload directly from GitHub or Google Drive if you have connected those. So I've already uploaded a PDF document here that I want Claude to help me understand. Watch how easily I can ask Claude to analyze this document for me. This document handling capability is exceptional. According to a benchmark study by Arthur AI, Claude can effectively process documents up to approximately 75,000 words, which is substantially more than other consumer AI assistance. This makes it particularly valuable for analyzing lengthy reports, research papers, or even legal documents. Now that the document is uploaded, I can ask Claude specific questions about it. I'm going to type in,"Can you summarize the key findings from this report and identify the three most important trends mentioned?" Claude is analyzing, reading, and giving me a response based on the course creator Google Drive cheat sheet document. Here's a summary of the key information and it has presented all of the information in a very easy to read, formatted with bullet points. And I can now go back and ask additional questions if I want to. Claude has read through the entire document and extracted exactly what I asked for. This feature alone has saved me hours of reading and note taking. You can upload PDFs, word documents, text files, and more. The free plan gives you five uploads per day. The pro Plan increases this limit. A study by Forrester Research found that knowledge workers spend an average of two and a half hours per day searching for information. Using AI tools like Claude for document analysis can potentially reduce this time by over 60 to 70%, freeing up significant time for higher value tasks. Let me show you another example of how you might use this for your business. Let's say you are working on creating a presentation and you want to use Claude to identify if you have any gaps in your presentation. You could very easily using the Google Drive feature, upload the work you have done so far and ask Claude to analyze your own work and say: hey, Claude, am I missing any key features? Explain what you're working on and have Claude analyze what you've done so far, and say, am I missing anything? I have done this many times and Claude has been extremely helpful in helping me to identify that I might be missing a component here or there, a lesson here, there in a course I'm building. Or even helping me to reorganize the work I've done. So it makes it flows better in a more logical order because sometimes when you're in the thick of it, it's very hard to see the forest through the trees. But having Claude analyze your work in a matter of minutes can make everything so much clearer. So that is another really, really great way to have an AI tool like Claude just take an impartial look at what you've been doing, and give you an outsider's perspective. So now we're gonna do a side-by-side comparison of Claude and ChatGPT to see how they handle the same prompts differently. I've got ChatGPT and Claude side-by-side on my screen. According to the Stanford Human Preferences Benchmark released in March, 2023, Claude three Opus was rated as more helpful than GPT-4 by human evaluators in 69.7% of cases and more harmless, and 82.9% of cases. So that is a significant difference that reflects anthropic, which is the parent of, for lack of a better word, the creator of Claude's focus on creating helpful and harmless and honest ai. So let's start with a content creation task. I'm gonna ask both AI's to write an introduction paragraph for a blog post about using automation to save time in a small business. Alright, here's what we've got. In Claude, it came up with a title. Time saving automation for small businesses work smarter, not harder. And the paragraph is: In today's fast paced business environment, small business owners often find themselves juggling multiple responsibilities with limited resources. Implementing automation strategies can be a game changer, allowing you to reclaim valuable hours while maintaining or even improving the quality of your operations. From streamlining customer communications to simplifying inventory management, the right automation tools can transform tedious manual tasks into efficient digital workflows. By identifying your most time consuming processes and gradually introducing targeted automation solutions, you'll create space to focus on what truly matters, growing your business and serving your customers. Not bad. Now, given that I gave it very, very few parameters, all I asked was, please write an introduction paragraph for a blog post about using automation to save time in a small business. That was pretty good ChatGPT gave us: Ever feel like your to-do list is breeding overnight? You're not alone. For small business owners, time is the most valuable and limited resource, and yet so much of it gets sucked up by repetitive tasks that don't actually grow the business. That's where automation steps in, like your new favorite employee, one that works 24 7, never needs coffee and doesn't drop the ball. In this post we're breaking down how smart automation can help you reclaim your time, reduce burnout, and finally focus on the big picture stuff like serving your clients, scaling your income, or heck taking a real day off. Also not bad. In my opinion. The ChatGPT one feels a little bit more like it was written by AI. Now I'm going to start fresh with clean chats, and I'm going to give it a new prompt of something that requires a little bit more analytical thinking. I'm going to ask it to explain the pros and cons of using email marketing versus social media for a service based business. All right, it has given us the responses and right off the bat what I've noticed is that the Claude responses are clear. They've given us more detail including facts. Claude has told us right off the bat, email Marketing Pros: email marketing typically generates better conversion rates than social media with average conversion rates of 15 to 22% compared to social media's, 1% to 2%. Better ROI Email marketing averages.$42 return for every$1 spent. Scrolling down, it's given us bullet points. Platform volatility, content, treadmill, less direct conversion, and at the bottom is also analyzed: best approach for most service businesses. A combined approach works best. Use email marketing for nurturing leads and driving conversions while leveraging social media for brand awareness, community building, and top of funnel lead generation. It then asks us a question. Would you like more specific information about implementation strategies for either channel? Whereas on ChatGPT, it's given us more high level information. a lot of the information is the same from both ChatGPT and Claude. You own your list, higher conversion rates, personalized and targeted. However, on ChatGPT, it's not giving us those facts. It's at higher conversion rates. For email. Email consistently converts better than social, but it didn't give us those facts. So again, we would have to go back to ChatGPT and ask, well, if it's a higher conversion rate, what is the conversion rate? It said better analytics, open rates, click rates, conversions. You actually get data that means something, but it didn't tell us what. It did provide us with the same analysis. Which one's better for a service base biz? The answer, you need both. You use them differently. And then it asked us want help mapping out your funnel from scroll to scale? So overall, it pretty much gave the same answer. I would just say in this case, that Claude just gave us a little bit more, including those facts about what the conversion rates are and what the ROI is. But overall, they pretty much gave us the same information. Just may be a little bit more vague on ChatGPT. You might have to go back and ask it a little bit more detail. I also have found lately that ChatGPT is just giving so many emojis. No matter how many times I go back I and say, please remove the emojis. So it's a little bit more, especially if you're copying and pasting that information into a document. I'm having to go back a lot and say, okay, chill on the emojis. I like the formatting of Claude a lot more. Both tools are definitely impressive and you can see that they each have their own strengths. In my experience, Claude often shines with more nuanced reasoning, longer more detailed responses, and better handling of complex documents. It's definitely more straightforward acknowledgement also of its own limitations while ChatGPT often excels at more concise responses, certain technical tasks like coding, if you're using that, and creative writing in very specific styles. It also has a broader ecosystem of plugins and extensions. I've covered this when I talked about custom GPTs. According to a comparative analysis by scale ai, while both models perform very well across various tasks, Claude tends to outperform on tasks requiring really nuanced understanding of complex instructions and really detailed reasoning. While ChatGPT performs better on coding tasks and adhering to specific formatting requirements. So at the end of the day, having both tools in your arsenal gives you more options depending on the tasks at hand. Now let's dive into some real world use cases. I'm going to share exactly how I use Claude in my own business for various tasks. A 2023 survey by Capterra found that businesses using AI for content creation reported a 50% reduction in content production time and a 37% decrease in content creation costs. These are significant numbers that directly translate to the bottom line Use Case#1 is content creation. First, I provide context about my business and audience. Then I give specific instructions about what I want. For example, I might tell Claude that I am creating content for my AI Evergreen Content Machine course. Claude would then create a series of captions that match my unique brand voice and target specific pain points for my ideal customers. Use Case#2 is for research and summarization. Now, I've already shown you how quickly Claude can read and summarize documents. You can use Claude to help with research. I previously uploaded that document and now I wanna extract specific information. I can ask Claude any number of questions about the documents that I've uploaded, and then I can have Claude help me to analyze that information and apply it directly to the work that I'm doing. According to a study by the information overload research group, the average knowledge worker spends 25% of their time managing information overload. That sounds exhausting! Using AI to parse and summarize information can significantly reduce this burden. Claude can pull needle in a haystack information from lengthy documents, saving you hours of reading and note taking Use Case#3 is for content refinement. I've already given you an example of how I use this by uploading all of the information for a project or course or presentation that I'm working on and asking Claude to help me refine my own work, for example, I'm currently in the process of preparing to launch a course that will be launching this fall, and I have used Claude multiple times to help me reorganize the lessons to make sure that they're in the optimal order for my students and to help me figure out if I have any knowledge gaps within the course. It has been extremely helpful in making sure that I have every piece of information that needs to be in the course and not anything extra because it's important that my students can make sure that they make it through the course in the least amount of time possible. I'm not here to be wasting people's time with unnecessary fluff, so I want to make sure that I have the most efficient and streamlined course possible without forgetting to include relevant and necessary lessons. So I have been using Claude to upload my course outline as I'm working through building this course and asking Claude to give me feedback, and it has been extremely helpful. A study published in the Journal of Marketing found that personalized email campaigns achieve 29% higher open rates and 41% higher click-through rates than generic campaigns. So using AI to refine and personalize your email content is another way to directly contribute to these improved metrics. You could very easily upload your email campaign through Claude, just as I've been doing with my course in progress, and have Claude make thoughtful edits and suggestions about how you can stick with your core message while making it more engaging and clear. Now that you've seen the basics, let's explore some advanced prompting strategies that will help you get even better results from Claude Research from Stanford University's Human Centered Artificial Intelligence Institute found that well crafted prompts can improve AI output quality by up to 30% compared to basic prompts. Let me show you how to implement this research in practice. So strategy#1 is system prompts. A system prompt is essentially instructions about how Claude should behave throughout your conversation. So for example, you could type something like you are a marketing expert specializing in email sequences for service-based businesses, your responses should be practical, actionable, and tailored for entrepreneurs with limited time use conversational language and provide examples whenever possible. So now when I ask questions about marketing, Claude will maintain this expertise and style throughout our conversation. For more tips about how to write really effective prompts, make sure you check out Episode#105, where I go through all the best prompt writing tips. Strategy#2 is step-by-step collaboration. Rather than asking Claude to complete a complex task all at once, I often break it down into steps. First, I ask for an outline. Then I refine the outline with Claude. Then I ask Claude to develop each section. Finally, I have Claude edit for a specific tone and style. You can always teach it your style first, if you have developed a brand voice, and if you haven't, make sure you check out my episode where I teach you how to develop your brand voice. I will also link that in the show notes, but in general, if you give it too many steps or too many tasks all in one prompt, your results will be mixed at best. Think of it like giving a toddler five tasks at once. The odds of getting all of those things done are slim. Research from the IEEE International Conference on AI assisted learning found that interactive iterative approaches to working with AI led to 45% higher quality outputs compared to a single prompt approach. Again, if you haven't heard my episode on iterative prompting, I will also link that in the show notes. This collaborative approach leads to much better results than trying to get everything perfect in one prompt. Strate#3ree is using Claude's memory effectively. Claude has a really impressive ability to remember previous parts of your conversation, so one of the best ways to do this is to develop different conversations and then continue on inside of those conversations. For example, I have one that is all about one of my programs. I have one conversation that is all about another program. I have one conversation that is all about podcast episodes. Each conversation is about a different part of my business, and by continuing on those different conversations, Claude is able to remember what I've asked it for. That way, the results that I get in each of those conversations is very consistent. Claude knows all about the details of each of my programs and courses because I continue on that conversation inside of the thread. Now, let's talk about some pro tips and best practices. Based on my extensive testing and use of Claude, here's some pro tips to get the most out of Claude. Tip#1 is be specific about your output format. Claude responds very differently when I'm vague versus specific about the format that I want. For example, when I have Claude help me with my blog posts, I'm very specific about wanting it to be formatted for a WordPress post with H1, H2, and H3 formats, I always make sure to ask Claude to format my blog posts to be optimized for SEO. By doing so, Claude always makes sure to put the keywords that I provide it with in the headlines, which helps it to be optimized for SEO. Research from the University of Washington's Human AI Interaction Lab found that providing clear format specifications improved the usability of AI outputs by 56%. This is especially important for business content where consistency matters. Tip#2 is use Claude's strengths. Claude particularly excels at document analysis, nuanced reasoning, detailed explanations, and balanced perspective on complex topics. Tip#3 is to combine Claude with other tools. What I have found with all of my use of AI tools is that you should never rely on just one tool. I often use Claude as part of a larger workflow. For example, I do a lot of research using ChatGPT. I outline with Claude. I draft my content with Claude, I refine with other tools, or I do that manually. Remember, it is always important to have that human touch. And then I do a final edit check with Grammarly or with Hemingway app. According to Gartner's Hype Cycle for artificial intelligence report organizations that implement integrated AI workflows with multiple specialized tools, see 35% higher productivity gains than those using single tool approaches. This is also what I teach inside of my AI Evergreen Content Machine course. How to use a few key AI tools to build your content machine. From one core piece of content to create up to 20 individual pieces of content in just two hours per week. Next, it's important to also be aware of the limitations of Claude and all AI tools. While Claude is powerful, it's important to understand that like everything, it does have its limitations. Let's talk about them. First, it's the knowledge cutoff. If I ask Claude about very recent events, Claude will let me know that it is not able to provide that information. Claude does acknowledge that it has a knowledge cutoff and it will not try to make up that information. Next is factual accuracy. Like all AI models, Claude can sometimes make mistakes. A study published in Nature Machine Intelligence found that current generation AI models have an average factual error rate of approximately 5% to 10% depending on the topic domain. This underscores the importance of fact checking critical information like I've talked about all the time, AI is your unpaid intern, Chad. You are the CEO of your business. You must have ownership over any content that you publish. You cannot just publish information that you have used AI to create. You must have the human touch, and you must fact check it. Next is creative versus factual tasks. Claude is generally more comfortable with creative tasks than highly technical or factual ones. This is why I use Claude for things like blog posts, podcast work. The creative content that comes out of Claude is exceptional. But if you are working on highly technical work, I encourage you to continue listening to this miniseries because I will be showing you other tools that are stronger in the highly technical domain. And there you have it, a comprehensive walkthrough of Claude from basic features to advanced strategies. As you've seen, Claude is a powerful AI assistant that can help you with research, content creation, analysis, and much more. Whether you're already using ChatGPT or you're new to AI tools altogether, Claude is definitely worth adding to your toolkit. The free version is robust enough for many users, and the pro version offers even more capabilities if you're ready for them. According to McKinsey's, the state of AI in 2023, businesses that effectively implement AI tools report productivity increases averaging 35% in content production workflows. By adding Claude to your toolkit, you're positioning yourself to capture these kinds of efficiency gains. If you found this tutorial helpful, make sure to check out the full video demonstration on my YouTube channel. The link is in the show notes. Don't forget to subscribe and leave a review. It helps other tech curious entrepreneurs find the show. For more in-depth training on using AI tools in your business, check out my AI Evergreen Content Machine course. I'll show you my complete system for creating content that works for your business around the clock, including advanced AI prompting strategies for tools like Claude and ChatGPT. The link is in the show notes. Thank you so much for tuning in to today's episode of Tech Savvy 101. I'll see you really soon.

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Sarah Baker

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