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A Guide to Using ChatGPT For Data Science Projects

Learn how to use ChatGPT in a real-life end-to-end data science project. We will use it for project planning, data analysis, data preprocessing, model selection, hyperparameter tuning, developing a web app, and deploying it on the Spaces.
Mar 2023  · 17 min read

ChatGPT for Data Science

We all know about the popularity of ChatGPT and how people are using it to boost their productivity. But if you are new, it’s worth signing up for a ChatGPT free demo and experimenting with all it can do. You should also take our Introduction to ChatGPT course to learn best practices for crafting effective prompts and to explore common business use cases for leveraging this powerful AI tool.

In this tutorial, we will learn how we can use ChatGPT to work on an end-to-end data science project. We will use various prompts to create a project outline, write Python code, conduct research, and debug the application. Moreover, we will learn tips on writing effective ChatGPT prompts. If you're intrigued about using AI for different purposes, check out our guide on artificial intelligence projects for all levels.

Using ChatGPT For An End-to-End Data Science Project

In the project, we will be using Loan Data from DataLab and plan the data science project around it. 

ChatGPT does 80 percent of the work here, we just have to master prompt engineering to get everything right, and for that, we have our amazing ChatGPT Cheat Sheet for Data Science. It comes with 60+ ChatGPT prompts for data science tasks based on SQL, R, and Python. 

Project Planning

It is the most important part of the project, where we look at the available resources and goals to come up with an optimal strategy. 

You can go to and initiate a new chat. After that, we will mention the available loan dataset and ask ChatGPT to come up with steps to build an end-to-end generic portfolio project. 

Prompt: “I have a loan dataset consisting of 9500 rows and 14 columns: ['credit.policy', 'purpose', 'int.rate', 'installment', '','dti', 'fico', '', 'revol.bal', 'revol.util', 'inq.last.6mths', 'delinq.2yrs', 'pub.rec', 'not.fully.paid']. Can you list the steps I have to follow to develop an end-to-end project for my portfolio.”

We did get the list, but we forgot to mention the class imbalance issue and the project goal, which is to accurately predict “loan not paid back”. 

Updated Prompt: “Please include class imbalance issues and accurately predict whether a loan will not be paid back rather than if a loan is paid back.”

Again, we are not interested in model monitoring, and we want to build a Gradio app and deploy it on Huggingface Spaces. 

Updated Prompt: “We will be creating a web app using Gradio and deploying it on Spaces and we won't be monitoring the model in the production.”

Idea Generation for loan data classifier

Gif by Author | Final list of the steps involved in a project

We got a list of 9 steps, as shown above, and a detailed explanation of how we should approach each step. 

Here is the list of tasks that we are going to follow in this tutorial:

  • Data cleaning and preprocessing. Handling missing values, converting categorical variables into numeric variables, scaling/normalizing the data, and handling any outliers or anomalies in the data. In addition, you'll want to address the class imbalance issue by either oversampling the minority class (loans that are not fully paid) or undersampling the majority class (loans that are fully paid).
  • Exploratory data analysis (EDA). Exploring the dataset to gain insights into the data, such as distributions of variables, correlations between variables, and identifying any patterns in the data.
  • Feature engineering. Creating new features or transforming existing features to improve the predictive power of the model. 
  • Model selection. Try several models, such as decision trees, random forests, logistic regression, or support vector machines (SVM). 
  • Model training and evaluation. Training the selected model on the data and evaluating its performance using various metrics such as accuracy, precision, recall, and F1 score. 
  • Hyperparameter tuning. Fine-tuning the hyperparameters of the selected model to improve its performance. 
  • Creating the web app using Gradio. Once you have selected the best model, you can create a web app using Gradio. 
  • Deploying the web app on Spaces. Once you have created the web app using Gradio, you can deploy it on Spaces. 
  • Testing the web app. Test it to make sure it is working as expected.

Exploratory Data Analysis (EDA) 

Exploratory data analysis is all about data manipulation, statistical analysis, and data visualization. We can complete it by writing a follow-up prompt about writing Python code for exploratory data analysis on our dataset. 

Follow-Up Prompt: “Please write a Python code to load and perform Exploratory data analysis (EDA) on loan dataset”

The bot will understand the context and come up with Python code with comments and a detailed explanation of how it works. 

Python code for EDA

Gif by Author | Python code for EDA

  1. Loading and displaying the dataset as Pandas dataframe. 
import pandas as pd
import matplotlib.pyplot as plt
import seaborn as sns

loan_df = pd.read_csv("loan_data.csv")



  1. Displaying the number of rows and columns and statistical summary for numerical variables. 
# Display the number of rows and columns in the dataset
print("Number of rows and columns:", loan_df.shape)

# Display summary statistics for numerical variables
Number of rows and columns: (9578, 14)
      credit.policy     int.rate  ...      pub.rec  not.fully.paid
count    9578.000000  9578.000000  ...  9578.000000     9578.000000
mean        0.804970     0.122640  ...     0.062122        0.160054
std         0.396245     0.026847  ...     0.262126        0.366676
min         0.000000     0.060000  ...     0.000000        0.000000
25%         1.000000     0.103900  ...     0.000000        0.000000
50%         1.000000     0.122100  ...     0.000000        0.000000
75%         1.000000     0.140700  ...     0.000000        0.000000
max         1.000000     0.216400  ...     5.000000        1.000000
  1. Displaying missing values in each column. As we can see, we have none. 
credit.policy        0
purpose              0
int.rate             0
installment          0       0
dti                  0
fico                 0    0
revol.bal            0
revol.util           0
inq.last.6mths       0
delinq.2yrs          0
pub.rec              0
not.fully.paid       0
  1. Visualizing the distribution of target variable “not.fully.paid”
sns.countplot(x="not.fully.paid", data=loan_df)

Visualizing the distribution of target variable

  1. Visualizing the correlation between variables.
corr = loan_df.corr()
sns.heatmap(corr, annot=True, cmap="coolwarm")

Visualizing the correlation between variables

  1. Understanding loan purpose distribution.
sns.countplot(x="purpose", data=loan_df)

Understanding loan purpose distribution

  1. Understanding the distribution of interest rates by loan purpose.
sns.boxplot(x="purpose", y="int.rate", data=loan_df)

Understanding the distribution of interest rates by loan purpose

Feature Engineering

Instead of preprocessing and cleaning the data, we will perform feature engineering to simplify the preprocessing task. 

Follow-up Prompt: “Write a Python code to perform feature engineering”

We did get the right solution, but it included irrelevant code, so we had to write an update prompt to modify the code. 

Updated Prompt: “only add feature engineering part.”

# Perform feature engineering
loan_df["installment_to_income_ratio"] = (
    loan_df["installment"] / loan_df[""]
loan_df["credit_history"] = (loan_df["delinq.2yrs"] + loan_df["pub.rec"]) / loan_df[

ChatGPT has suggested two new features:  “installment_to_income_ratio” and “credit_history”.

Preprocessing and Balancing the Data

Again, ChatGPT knows the context of the project. We don't have to explain everything again. So, we will simply ask it to write a Python code to clean and preprocess the data. 

Follow-up Prompt: “Now write a python code to clean and preprocess the dataset”

  1. Dropping unnecessary columns and converting the categorical variables to numerical ones.
from sklearn.preprocessing import LabelEncoder, StandardScaler

loan_df = loan_df.drop(['credit.policy', '', 'purpose'], axis=1)

# Convert categorical variables to numerical using LabelEncoder
le = LabelEncoder()
loan_df['not.fully.paid'] = le.fit_transform(loan_df['not.fully.paid'])
  1. Scaling the numerical features using Standard Scaler. 
scaler = StandardScaler()
numerical_cols = ['int.rate', 'installment', '', 'dti', 'fico', 'revol.bal', 'revol.util', 'inq.last.6mths', 'delinq.2yrs', 'pub.rec','credit_history','installment_to_income_ratio']
loan_df[numerical_cols] = scaler.fit_transform(loan_df[numerical_cols])
  1. Handling class imbalancing using imblearn’s oversampling method. 
from imblearn.over_sampling import SMOTE

sm = SMOTE(random_state=42)

X = loan_df.drop('not.fully.paid', axis=1)
y = loan_df['not.fully.paid']

X_resampled, y_resampled = sm.fit_resample(X, y)

loan_df = pd.concat([X_resampled, y_resampled], axis=1)

As we can see, we have successfully balanced the class. 

0    8045
1    8045
Name: not.fully.paid, dtype: int64

Model Selection

In this part, we have asked ChatGPT to train the data on various models for a model selection task.  

Follow-up Prompt: “Write a follow-up python code for model selection. Try decision trees, random forests, logistic regression, or support vector machines (SVM). Note: only include the model selection part.”

It has generated the Python script to split the dataset into a training and test and train the dataset on specified models to display accuracy metrics.

from sklearn.model_selection import train_test_split

# Split the dataset into training and testing sets
X = loan_df.drop('not.fully.paid', axis=1)
y = loan_df['not.fully.paid']
X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=0.3, random_state=42)

# Fit and evaluate decision tree classifier
dt = DecisionTreeClassifier(random_state=42), y_train)
dt_score = dt.score(X_test, y_test)
print("Decision Tree Classifier Accuracy: {:.2f}%".format(dt_score*100))

# Fit and evaluate random forest classifier
rf = RandomForestClassifier(random_state=42), y_train)
rf_score = rf.score(X_test, y_test)
print("Random Forest Classifier Accuracy: {:.2f}%".format(rf_score*100))

# Fit and evaluate logistic regression classifier
lr = LogisticRegression(random_state=42), y_train)
lr_score = lr.score(X_test, y_test)
print("Logistic Regression Classifier Accuracy: {:.2f}%".format(lr_score*100))

# Fit and evaluate support vector machine classifier
svm = SVC(random_state=42), y_train)
svm_score = svm.score(X_test, y_test)
print("Support Vector Machine Classifier Accuracy: {:.2f}%".format(svm_score*100))

The Random Forest algorithm has significantly outperformed the other models.  

Decision Tree Classifier Accuracy: 81.21%
Random Forest Classifier Accuracy: 89.14%
Logistic Regression Classifier Accuracy: 61.32%
Support Vector Machine Classifier Accuracy: 66.54%

Hyperparameter Tuning and Model Evaluation 

We will be selecting the better-performing model and performing the model evaluation. We have specified the use of accuracy, precision, recall, and F1 score as metrics and cross-validation to ensure the model stability.

Follow-up Prompt: “Select RandomForestClassifier and write a python code for model evaluation. Use accuracy, precision, recall, and F1 score as metric and cross-validation to ensure the model is not overfitting to the training data.”

We will update the Python to add hyperparameter tuning tasks and save the best-performing model. 

Updated Prompt: “also include hyperparameter tuning in the above code and save the best-performing model”

The final version of the code is using GridSearchCV for hyperparameter tuning with five cross-validation splits and uses the f1 metric for evaluation to find the best hyperparameters. 

After that, ChatGPT automatically added the code to select the best model for model evaluation on the testing set and displayed the best-performing hyperparameters. 

from sklearn.model_selection import GridSearchCV
from sklearn.metrics import accuracy_score, precision_score, recall_score, f1_score
# Define the parameter grid for hyperparameter tuning
param_grid = {
    'n_estimators': [100, 200, 300],
    'max_depth': [10, 20, 30, None],
    'min_samples_split': [2, 5, 10],
    'min_samples_leaf': [1, 2, 4]

# Perform grid search with cross-validation to find the best hyperparameters
grid_search = GridSearchCV(rf, param_grid, cv=5, scoring='f1'), y_train)

# Get the best model and its hyperparameters
best_model = grid_search.best_estimator_
best_params = grid_search.best_params_

# Evaluate the best model on the testing set
y_pred = best_model.predict(X_test)
accuracy = accuracy_score(y_test, y_pred)
precision = precision_score(y_test, y_pred)
recall = recall_score(y_test, y_pred)
f1 = f1_score(y_test, y_pred)

# Print the results
print("Random Forest Classifier Evaluation Results:")
print("Accuracy: {:.2f}%".format(accuracy * 100))
print("Precision: {:.2f}%".format(precision * 100))
print("Recall: {:.2f}%".format(recall * 100))
print("F1 Score: {:.2f}%".format(f1 * 100))
print("Best hyperparameters:", best_params)

We have a stable model with an 89.35 accuracy score. Both Precision and recall are similar. 

Random Forest Classifier Evaluation Results:
Accuracy: 89.35%
Precision: 89.92%
Recall: 88.33%
F1 Score: 89.12%
Best hyperparameters: {'max_depth': None, 'min_samples_leaf': 1, 'min_samples_split': 2, 'n_estimators': 300}

In the end, we will be saving the model using joblib. 

import joblib
# Save the best model to disk
joblib.dump(best_model, 'loan_classifier.joblib')

You can find the source code with the outputs on this DataLab workbook; you can easily create your own copy to edit and run the code in the browser, all without having to install anything on your computer. 

Creating a Web App using Gradio

Now comes the most fun part. We will only use prompts to create a fully customizable web app that will take numerical input and display the results using a machine-learning model. 

ChatGPT already knows the context, so we need to just ask it to write a Gradio web app for the loan data classifier. 

Follow-up Prompt: “Write the Python code to create a Gradio web app for loan data classifiers. We are not using columns ['credit.policy', '', 'purpose'].”

Ask ChatGPT to only include the Gradio app part instead of training and then the inference script. 

Updated Prompt: “just include the gradio app part.”

The code we got displays the predictive class probability, and we want to show classification labels. 

Updated Prompt: “modify the code to show classification instead of class probabilities.”

After running the code, we have seen multiple warnings and errors. You can improve it by mentioning the errors to ChatGPT. 

We need to understand the limitations of ChatGPT. It was trained on an old dataset, and if you are expecting it to update the code with the latest API, you will hit the wall. Instead, we must read the Gradio documentation and update the code manually. 

Failed Prompt: “update the Gradio code with component from gradio.components”

In the Gradio app, we are loading the saved model and getting the inputs from users to display model predictions. 

Learn how Gradio works by reading the Gradio Docs.

import gradio as gr
import joblib
# Load the trained model
model = joblib.load("loan_classifier.joblib")

def predict_loan_status(
    input_dict = {
        "int.rate": int_rate,
        "installment": installment,
        "": log_annual_inc,
        "dti": dti,
        "fico": fico,
        "revol.bal": revol_bal,
        "revol.util": revol_util,
        "inq.last.6mths": inq_last_6mths,
        "delinq.2yrs": delinq_2yrs,
        "pub.rec": pub_rec,
        "installment_to_income_ratio": installment_to_income_ratio,
        "credit_history": credit_history,
    # Convert the dictionary to a 2D array
    input_array = [list(input_dict.values())]
    prediction = model.predict(input_array)[0]

    if prediction == 0:
        return "Loan fully paid"
        return "Loan not fully paid"

inputs = [
    gr.Slider(0.06, 0.23, step=0.01, label="Interest Rate"),
    gr.Slider(100, 950, step=10, label="Installment"),
    gr.Slider(7, 15, step=0.1, label="Log Annual Income"),
    gr.Slider(0, 40, step=1, label="DTI Ratio"),
    gr.Slider(600, 850, step=1, label="FICO Score"),
    gr.Slider(0, 120000, step=1000, label="Revolving Balance"),
    gr.Slider(0, 120, step=1, label="Revolving Utilization"),
    gr.Slider(0, 10, step=1, label="Inquiries in Last 6 Months"),
    gr.Slider(0, 20, step=1, label="Delinquencies in Last 2 Years"),
    gr.Slider(0, 10, step=1, label="Public Records"),
    gr.Slider(0, 5, step=0.1, label="Installment to Income Ratio"),
    gr.Slider(0, 1, step=0.01, label="Credit History"),
outputs = [gr.Label(num_top_classes=2)]

title = "Loan Approval Classifier"
description = (
    "Enter the details of the loan applicant to check if the loan is approved or not."

You can save the above code in the `` file and launch the app in the browser by running the `python` script in the terminal. 

Loan approval classifier app

Gif by Author | Loan approval classifier app

Even though our app is working fine, ChatGPT has completely missed that we have scaled the numerical features. So, instead of asking to update the code, you can go back and save the standard scalar parameters. 

scalar = joblib.load('std_scaler.bin')

After that, load the scalar in your app using joblib.

input_array = [list(input_dict.values())]
scaled_array = scalar.transform(input_array)
prediction = model.predict(scaled_array)[0]

So, why are we doing it manually? If you ask ChatGPT to modify a single line, it might modify the entire code and even variable names. 

Yes, ChatGPT is not perfect, and it will never replace a developer. 

Deploying the Web App on Spaces

You can simply ask ChatGPT to teach you the simple way of deploying a gradio app on Hugging Face Spaces, and it will list the necessary steps. 

Prompt: “how to deploy gradio app to huggingface spaces.”

  1. Go to Hugging Face website and click on your profile picture on the top left to select the “New Space” option.  

Hugging Face

Image by Author

  1. Add the name and license type to create the app repository. 
  2. Click on Files and Versions tab > + Add file > Upload files to add file on repository. 
  3. Drag, model, and scaler files and click on “Commit change to main'' button and save the commit with a commit message.  Similar to Git.

Commit change to main

Image by Author

If you are facing a runtime error, it is because you forgot to also add requirements.txt file. Select Files and Versions tab > + Add file > Create a new file and add the file name and Python libraries with versions as shown below. 

Create a new file

Image by Author

Your app is ready. You can change the input using sliders and predict if the customer should get a loan or not. 

You can try the live demo on a Hugging Face Space by kingabzpro.

Hugging Face Space

Image by Author | Loan Classifier

Tips For Writing Effective ChatGPT Prompts

Prompt engineering is tricky when it comes to using it for real-life projects. We need to understand the rules about what we can do or where we have to step in to correct the ChatGPT. 

Here are some tips on how you can improve your experience with ChatGPT without compromising the project.

  1. Always write clear and concise prompts. Make sure you explain everything in detail about what you need at the start.
  2. Create a history of a project. ChatGPT is a chatbot, so for it to effectively understand the context, you need to establish history. 
  3. Keep trying. There is no standard way of writing prompts. You need to start with a base prompt and keep improving the suits by writing follow-up update prompts.  
  4. Mention code errors. If you run the code on your local machine and it raises the error, try mentioning the error in the follow-up prompt. ChatGPT will immediately learn from the mistake and come up with a better solution. 
  5. Make changes manually. ChatGPT was trained on old data, and if you are expecting it to come up with the idea or new API command, you will be disappointed. Try making manual changes to your code where possible because the generated code is not perfect. 
  6. Use it for common tasks. There are better chances of success with ChatGPT if you ask for common tasks.
  7. Use it for learning something new. Always ask ChatGPT to explain new things or for “how to do” tutorials. It will provide you with a list of simple steps that will get the work done. It is quite helpful if you have a learning disability. 

If you are interested in ChatGPT and OpenAI API, register for the webinar: Getting Started with the OpenAI API and ChatGPT. You will learn to perform language and coding generation tasks using the OpenAI API and much more.


Developing a loan approval classifier is one of many examples of using ChatGPT for data science projects. We can use it to generate synthetic data, run SQL queries, create data analytics reports, do machine learning research, and much more. Generative AI is here to stay, and it will make our lives easier. Instead of spending weeks and months on a project, you can develop, test, and deploy data science applications in hours. 

In this tutorial, we have learned to use ChatGPT for project planning, data analysis, data cleaning and preprocessing, model selection, hyperparameter optimization, and creating and deploying web applications. 

There is a catch to using ChatGPT. You need to have experience with statistical analysis and Python coding to understand different tasks in the project; without it, you are walking blind. Start your data science journey by taking Data Scientist with Python career track and gain the career-building skills you need to succeed as a data scientist. 


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