Study Finds GPT-4 Outperforms Human Analysts in Financial Forecasting

Research from the University of Chicago reveals AI's superior accuracy in predicting earnings changes, even without industry-specific information.

GPT-4 achieved a 60.4% accuracy rate in predicting future earnings, surpassing human analysts by 7 percentage points.
The AI used chain-of-thought prompts to emulate human reasoning, enhancing its analytical capabilities.
Trading strategies based on GPT-4 forecasts were more profitable than traditional stock market approaches.
The study suggests AI can democratize financial information processing and aid decision-making.
Researchers caution that AI performance in real-world financial markets remains to be fully evaluated.