Despite its impressive capabilities, ChatGPT is still not ready to replace finance professionals. A study by Washington State University (WSU) explored the accuracy of large language models like ChatGPT, BARD, and Llama in answering questions from financial exams.
AI Struggles with Complex Financial Tasks
The study, published in the Financial Analysts Journal, found that while ChatGPT performed well on broad financial concepts, it stumbled when asked to provide explanations or handle specialized topics. Researchers tested over 10,000 responses to questions from exams like Series 6, 7, 65, and 66. While ChatGPT 4.0 was the top performer, its accuracy dropped significantly on complex issues like insurance coverage and tax statuses.
AI is a Tool, Not a Replacement
DJ Fairhurst, the study’s lead author, emphasized that AI tools like ChatGPT are not yet advanced enough to replace professionals entirely. He noted that AI excels at synthesizing common knowledge, but falls short when asked to handle unique or significant financial problems. In simpler terms, ChatGPT is better as an assistant than a replacement.
The Future of AI in Finance
Though ChatGPT still can’t replicate the judgment of seasoned finance experts, it may help streamline tasks in entry-level roles at investment banks. The study suggests that AI could reshape the industry by eliminating menial jobs for junior analysts, rather than replacing experts who tackle complex tasks.
ChatGPT can assist with basic tasks but isn’t close to taking over the finance industry. For now, financial professionals remain irreplaceable.
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