Becoming a Chartered Financial Analyst (CFA) is not an easy task. Indeed, the exam has three levels, and most people spend several years and about 1,000 hours studying before they can pass. However, according to CNBC, new research shows that artificial intelligence can now pass even the toughest part (the Level III mock exams) in just minutes. This shows just how quickly AI is improving, especially in areas that require complex reasoning and problem-solving.
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The study was carried out by New York University’s Stern School of Business and GoodFin, an AI-powered wealth management company. Researchers tested 23 large language models on Level III mock exams, which include both multiple-choice and essay questions. Advanced models, such as OpenAI’s o4-mini, Google’s (GOOGL) Gemini 2.5 Pro, and Anthropic’s Claude Opus, managed to pass by using “chain-of-thought prompting.” This is a method where the AI explains its steps as it solves problems.
It is worth noting that just two years ago, AI could only handle Levels I and II, but now it has caught up with the essay-focused Level III, which focuses on portfolio management and wealth planning. As a result, Anna Joo Fee, CEO of GoodFin, said that the technology has the potential to transform the industry. Still, she pointed out that AI is unlikely to replace the CFA designation itself. Instead, AI looks more like a powerful tool that can support human analysts rather than replace them completely.
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