CFA Level I Success Drops To 43% As AI Models Ace Final Exam

Thousands of people sat for the first of three tests in August to become chartered financial analysts, and less than half passed. At the same time, artificial-intelligence models — the systems many in finance are afraid will someday take their jobs — have now advanced to the point they can ace the final level of the CFA exam in minutes.

Of candidates who sat for the Level I test in August, 43% passed, down from a 45% success 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-taking deferrals amid the Covid-19 pandemic.

Recently, the evolution of machine learning has put more focus on the use of AI tools in finance roles. Large-language models have demonstrated the ability to pass Level III of the CFA tests — the final exam — far 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, managing director for education at the institute, said in a statement.

The CFA charter is a coveted certification for professionals across the finance industry. The three-level test to become a charterholder is offered several times a year and can lead to new job opportunities 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 pass rate for successful candidates differed depending on whether or not test-taking had been deferred. Those who took the Level I exam in August without a deferral or interruption had a 50% pass rate, while candidates who put off their test at least once had a pass rate of 29%, the institute said.

“Our data consistently shows that staying on schedule is one of the strongest predictors of exam success,” Wiese said.

Level II candidates who sat for their exams in August are slated to get their results Thursday.