Subj : AI is already better at analyzing financial reports than humans
To   : All
From : TechnologyDaily
Date : Mon May 27 2024 12:45:04

AI is already better at analyzing financial reports than humans

Date:
Mon, 27 May 2024 11:37:08 +0000

Description:
Multipurpose generative AI chatbots can be more accurate than humans when it 
comes to analyzing finance.

FULL STORY
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New research has claimed large language models, specifically GPT-4 (which 
powers certain versions of ChatGPT and various Microsoft Copilot-branded 
generative AI products) is able to analyze financial statements with greater 
accuracy than humans. 

The findings from researchers at the University of Chicago suggest 
significant implications for the future of financial analysis and 
decision-making as AI becomes more commonplace. 

The study also highlights the versatility of generic, multipurpose LLMs such 
as GPT-4, which can offer similar abilities as more specialized tools, 
noting, We find that the prediction accuracy of the LLM is on par with the 
performance of a narrowly trained state-of-the-art ML model. LLMs are 
outstanding at analyzing financial reports 

In their tests, the researchers found that GPT-4 outperformance human 
analysts even without textual context, highlighting the techs accuracy of 60% 
compared with the 53-57% range of human analysts. 

The success didnt come without some initial ground work, though, with the 
paper going into detail about the researchers use of chain-of-thought prompts 
in order to craft more suitable and accurate responses. 

Moreover, the study found that GPT-4 and human analysts complement each other 
well while the LLM excels in areas where humans might be inefficient or 
biased, humans add value where additional context is required. 

GPT-4s capabilities were attributed to its vast knowledge base and 
theoretical understanding, which enable it to draw conclusions from data 
patterns even without specific financial training, and while the model was 
shown to have some limitations, progress has already seen the latest GPT-4o 
model significantly improve efficiency while morphing into a multimodal 
model. 

While there has been a fair deal of scepticism surrounding generative AIs 
readiness to replace human workers, its position as an integral support is 
becoming increasingly evident as human workers prepare to hybridize with the 
efficiency-boosting technology. More from TechRadar Pro These are the best AI 
writers and best AI tools around right now Weve rounded up the best small 
business accounting software Cisco launches AI job consortium to see which 
roles will be most affected by AI



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Link to news story:
https://www.techradar.com/pro/ai-is-already-better-at-analyzing-financial-repo
rts-than-humans


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