📈 GPT-4 performed better in financial analysis with larger and more mature firms, BI researchers reported.

A study has found that OpenAI's GPT-4 can analyze financial statements and sometimes predict a company's future performance better than a human analyst.

Researchers at the University of Chicago Booth School of Business studied more than 150,000 firm observations, from about 15,000 companies, and evaluated the performance of financial analysts in their predictions. The analysts achieved 53% accuracy in monthly forecasts of the direction of future earnings.

GPT-4, given financial reports without textual information, achieved 52% accuracy. However, when the researchers used a command-line thought chain, the model achieved 60% accuracy, outperforming human analysts.

The results showed that GPT, by receiving more instructions and approaching the analysis like a human, could outperform human analysts even without key textual information commonly found in financial reports.