GPT-4 Outperforms Human Financial Analysts In Predicting Earnings Growth, Say Researchers
June 7, 2024
IBL News | New York
Researchers from the University of Chicago found that OpenAI’s GPT-4 outperforms human financial analysts in predicting future earnings growth.
They reflected their conclusions in a working paper titled “Financial Statement Analysis with Large Language Models.”
The findings could have significant implications for financial analysis and decision-making, according to VentureBeat.
The researchers used “chain-of-thought” prompts to emulate the analytical process of a financial analyst, identifying trends, computing ratios, and synthesizing the information to form a prediction.
They achieved a 60% accuracy in predicting the direction of future earnings, notably higher than the 53-57% range of human analyst forecasts.
“Our results suggest that LLMs may take a central role in decision-making,” the authors concluded.
