(Bloomberg)—The passage rate for the first level of the chartered financial analyst exam fell to 43% for humans, even as artificial intelligence models have advanced to the point that they can ace the final and most difficult level of the exam in minutes.
In August, 43% of candidates passed the Level I test, down from a 45% pass rate for those who took the exam in May and February, the CFA institute said on Thursday. Still, that's higher than the 41% average for the past decade and the lows from 2021, when exam performance was hurt by test postponements amid the Covid-19 pandemic.
Recently, the evolution of machine learning has brought more attention to the use of AI tools in finance roles. Large language models have been shown to deliver Level III of the CFA tests—the final exam—much faster than any human, according to a recent study from New York University's Stern School of Business.
“AI can augment decision-making, but human professionals must challenge, validate and interpret AI outputs, especially in complex or novel scenarios,” Chris Wiese, director of education at the Institute, said in a statement.
The CFA charter is a coveted certification for professionals in the financial sector. The three-level test to become a charter holder is offered several times a year and can lead to new vacancies and higher salaries. The average successful human candidate reports studying more than 300 hours for each level of the exam, with completion of the series taking three to four years.
More than 26,000 candidates sat for the Level I exam in August, which was administered at 502 proctored, computer-based testing centers around the world.
As has been the case with previous exams in all three CFA levels, the passage rate for successful candidates differed depending on whether test taking had been postponed or not. Those who took the Level I exam in August without postponement or interruption had a pass rate of 50%, while candidates who deferred their test at least once had a pass rate of 29%, the institute said.
“Our data consistently shows that staying on track is one of the strongest predictors of exam success,” Wiese said.
Level II candidates who sat for their exams in August are scheduled to receive their results on Thursday.
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