GPT-4 vs GPT-5: what’s changed and what it means for your business

So GPT-5 was released a few days ago – what does that mean for the way I use ChatGPT? Most people who use ChatGPT use the default model, but with different models, come differences in GPT’s ability. Hold on to your hats while we deep dive into the evolution from GPT-4 to GPT-5, what changed, what improved, where GPT-4 still has the upper hand, and what GPT-5 does better in practical use.

We’ll break it into sections so it’s easier to follow:

ChatGPT - GPT-4 vs GPT-5The Big Picture: GPT-4 vs GPT-5

The GPT-4 → GPT-5 jump isn’t just about “more parameters” or “bigger data” (though that’s part of it). It’s about capabilities, reliability, and adaptability. GPT-5 is designed to be:

  • More accurate in following complex instructions.
  • More contextual with longer memory and better at holding a consistent thread.
  • More versatile in handling multi-step reasoning, planning, and decision-making.
  • Better at “thinking ahead” — predicting what you’ll need next in a conversation.
  • More natural in tone, adapting writing style to your audience without losing clarity.

At its core, GPT-5 feels less like a “Q&A machine” and more like a proactive collaborator.

 

Key Differences

Here’s the high-level view of what’s changed:

AreaGPT-4GPT-5
Context LengthGood, but limited in long sessions — sometimes forgets earlier details.Much longer context window, remembers more and keeps it coherent across extended chats.
Instruction FollowingSolid, but sometimes misses nuance or over-simplifies.More precise, catches subtle requirements in complex, layered instructions.
ReasoningStrong, but struggles with highly multi-step logical chains.Better at step-by-step reasoning, planning, and working with dependencies.
CreativityStrong at short-form creative tasks.Better at long-form creative projects that need consistency over many pages.
Tone AdaptationCan adapt, but sometimes too generic or overly formal.Much finer tone control — from casual banter to academic writing without breaking flow.
Error HandlingTends to “confidently guess” when uncertain.More likely to acknowledge uncertainty and suggest verification steps.
Tool UseBasic API and plugin interaction.More seamless multi-tool reasoning — can plan, reason, and integrate multiple tools in one coherent output.

 

Where GPT-4 Still Wins

Surprisingly, GPT-4 still has some edges in certain situations:

  1. Simplicity in short tasks
    GPT-4 is sometimes quicker for small, one-shot questions — it doesn’t “overthink” when you just need a quick, basic answer.

Example:

    • GPT-4: “What’s 37 × 42?” → immediate, short answer.
    • GPT-5: Will still answer instantly but might also give context (“That’s 1,554; for reference, that’s roughly the number of minutes in 25 hours”). Helpful, but more verbose if you didn’t ask for it.
  1. Lower verbosity by default
    GPT-4 tends to be concise unless prompted otherwise. GPT-5 can be more elaborate by default, which is great for depth but sometimes overkill for quick queries.
  2. Predictability for old prompts
    If you have prompts optimised for GPT-4’s quirks, they might not behave identically in GPT-5 — GPT-5 interprets instructions more literally, which can subtly change outputs.

 

Where GPT-5 Shines

Here’s where GPT-5 is a clear upgrade, with examples.

a) Complex, Multi-Step Reasoning

GPT-5 handles long logical chains much better than GPT-4.

Example Task:
“Create a three-month content calendar for a small cybersecurity business in Australia, targeting small business owners, incorporating seasonal events, major news cycles, and SEO-optimised blog topics. Then write the first two blog posts in Australian English, making sure the tone is approachable but authoritative.”

  • GPT-4’s Result:
    Might produce a decent calendar but miss subtle seasonality (e.g., tax-time cyber scams in June for Australia). The blogs may be slightly generic without deep keyword alignment.
  • GPT-5’s Result:
    Will integrate Australian financial year timing, recent cyber trends, SEO research logic, and match tone exactly — producing not just a calendar, but content that reads like they came from a niche expert.

b) Long-Form Memory and Consistency

GPT-5 keeps track of more context across a conversation or document.

Example:
In a 10,000-word policy draft, GPT-4 might accidentally contradict an earlier section or change terminology halfway through. GPT-5 will keep definitions, tone, and terminology aligned throughout — especially important for legal, technical, or creative projects.

c) Nuanced Tone Control

GPT-5 is better at fine-grained adjustments to voice and style.

Example:
“Rewrite this technical security policy so it sounds like a friendly, plain-English guide for small business owners, but without removing legal accuracy.”

  • GPT-4: Might oversimplify and drop important compliance language.
  • GPT-5: Keeps the legal precision intact but frames it with analogies and approachable phrasing.

d) Proactive Assistance

GPT-5 often anticipates what you might need next.

Example:
If you ask GPT-5 to outline a cybersecurity awareness workshop, it might also suggest a slide deck structure, a handout template, and potential quiz questions — without you asking. GPT-4 would stick more strictly to the outline request.

e) Handling Ambiguity

GPT-5 is better at clarifying unclear requests before answering.

Example:
If you say:
“Write a security plan for an office.”

  • GPT-4: Will pick one interpretation and run with it — maybe physical security or maybe IT security — without asking.
  • GPT-5: Will ask: “Do you mean physical premises security, IT/cybersecurity, or a combined plan?” and proceed accordingly.

f) Better at Cross-Domain Integration

GPT-5 is much stronger when you ask it to combine knowledge from different fields.

Example:
“Design a marketing campaign for a cybersecurity company that uses behavioural psychology principles to encourage password hygiene.”

  • GPT-4: Knows both marketing and psychology basics, but the integration may feel surface-level.
  • GPT-5: Will integrate psychology frameworks (e.g., habit formation, loss aversion) into specific marketing tactics with measurable outcomes.

 

Technical Under-the-Hood Improvements

GPT-5 Improvements

While OpenAI hasn’t disclosed every technical detail, here’s what we can reasonably infer:

  1. Larger and more diverse training corpus — covering newer events, cultural references, and updated technical standards.
  2. Improved fine-tuning — GPT-5’s responses are more aligned with real-world business and professional workflows.
  3. Better multi-modal reasoning — GPT-5 integrates text, image, and other data types more seamlessly (where supported).
  4. More robust factual checking — it’s still not perfect, but GPT-5 reduces “hallucinations” in specialised domains.
  5. Extended context window — allowing it to keep track of more information at once, making it useful for book-length or project-length work.

 

Practical Use-Case Examples

Here are some real-world scenarios where GPT-5 would save more time and effort than GPT-4.

Scenario 1: Legal & Policy Drafting

You need an IT usage policy that complies with Australian law, aligns with ISO 27001, and is readable by staff.

  • GPT-4: Will create a good draft but might need manual fixes to compliance details and tone.
  • GPT-5: Produces a compliant draft in the correct jurisdiction, cross-references ISO standards, and formats it for distribution.

Scenario 2: Strategic Business Planning

You’re building a 12-month digital marketing plan for a new Software as a Service (SaaS )product.

  • GPT-4: Will give you ideas for each quarter but may not balance budget, seasonal demand, and resource constraints effectively.
  • GPT-5: Produces a month-by-month plan factoring in resource allocation, competitor activity, seasonal demand, and your internal milestones.

Scenario 3: Education & Training

You want a full training package for “Security Awareness” tailored for a remote Australian workforce.

  • GPT-4: Creates a good outline and some training slides.
  • GPT-5: Delivers a detailed program with slides, handouts, interactive quiz scripts, and even guidance on delivering it via Zoom — plus follow-up reinforcement activities.

Scenario 4: Customer Communication

You run a tech support service and want a chatbot that handles complex customer issues while maintaining brand voice.

  • GPT-4: Will handle FAQs well but sometimes slip into generic language.
  • GPT-5: Maintains your brand tone consistently, even in tricky situations, and can handle escalation protocols without breaking tone.

 

Summary Table: Use which GPT model for what?

If you need…GPT-4GPT-5
Quick, simple Q&A
Short, concise answers⚠ (Can be verbose)
Long, complex projects
Multi-step reasoning
Highly nuanced tone matching
Anticipatory, proactive help
Lower cost for simple tasks

Final Takeaway

  • GPT-4 is like a reliable, experienced assistant — great for straightforward tasks and quick answers, with a predictable style.
  • GPT-5 is more like a senior strategist — it can manage bigger projects, juggle more complexity, adapt tone precisely, and think a few steps ahead.

 

In a nutshell:
If your work involves short, one-off queries or you’ve already optimised prompts for GPT-4, it’s still an excellent tool. When given a complex, multi-part request  GPT-4 delivered a solid, concise plan — but it was generic, and used basic measurement methods.

However, if you require in-depth reasoning, multi-stage planning, tone-perfect communication, or seamless project continuity, GPT-5 is a clear upgrade. It produces richer, more localised, and more engaging results, references (where required), gamified learning, and multi-layered progress tracking, all while maintaining a friendly yet professional tone.

We at innoTel look forward to getting to use GPT-5 as we help customers automate parts of their business. Want to find out how GPT models can help your business? Get in touch and have a chat with the team at innoTel.