The Blubber

ChatGPT cannot pass the CFA exam currently, per JPMorgan, $JPM.

A group of researchers from JPMorgan Chase & Co. and academic institutions conducted experiments to assess the potential of OpenAI's ChatGPT and GPT-4 chatbots to pass the first two levels of the exam. Typically, humans take four years to complete all three levels of this rigorous test, which can lead to higher salaries and improved job prospects.

According to the researchers, "Based on estimated pass rates and average self-reported scores, we concluded that ChatGPT would likely not be able to pass the CFA Level I and Level II under all tested settings." In contrast, "GPT-4 would have a decent chance of passing the CFA Level I and Level II if prompted."

The research team consisted of academics and six members of JPMorgan's AI Research organization, including Sameena Shah and Antony Papadimitriou.

The CFA Institute, which administers the credentials, has been working for years to ensure that finance professionals are well-versed in the forces behind automation. In 2017, the institute announced its intention to incorporate questions on artificial intelligence and methods for analyzing big data into its exams.

Chris Wiese, Managing Director for Education at the CFA Institute, acknowledged that large-language models might be able to correctly answer some exam questions. However, he emphasized that "the day-to-day in finance does not present itself only as a series of short, standalone questions." Becoming a CFA charterholder involves 4,000 hours of qualifying work experience, references, a strong moral compass, and soon, the completion of practical skills modules.

The CFA Institute is also exploring the use of large-language model technology to aid CFA candidates in their learning, Wiese added.

Every few months, thousands of candidates take the three different levels of the CFA exam, with recipients of the charter dedicating over 300 hours of study to each level. In recent years, pass rates for the exam have slightly decreased, with the average pass rate for the first level reaching 37% in August, compared to the 43% average in 2018.