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(Bloomberg) — The passing rate for the first level of the Chartered Financial Analyst exam has dropped to 43% for humans, while artificial-intelligence models have advanced to the point where they can crack the final and toughest level of the exam in minutes.
In August, 43% of candidates passed the Level I exam, down from the 45% success rate for those who took the exam in May and February, the CFA Institute said Thursday. Still, this is higher than the 41% average of the last decade and the low of 2021, when exam performance suffered due to exam postponements amid the COVID-19 pandemic.
Recently, developments in machine learning have focused more on the use of AI tools in finance roles. According to a recent study from New York University’s Stern School of Business, large language models have demonstrated the ability to pass Level III of CFA tests – the final exam – much faster than any human.
“AI can enhance decision making, but human professionals must challenge, validate, and interpret AI outputs, especially in complex or novel scenarios,” Chris Wiese, managing director of education at the institute, said in a statement.
The CFA Charter is a prestigious certification for finance industry professionals. A three-tier examination to become a charterholder is given several times a year and can lead to new job opportunities and higher salaries. The average successful human candidate reports studying over 300 hours for each level of the exam, taking three to four years to complete the series.
More than 26,000 candidates sat for the Level I exam in August, which was conducted at 502 proctored, computer-based testing centers around the world.
As has been the case with previous examinations in all three CFA levels, the pass rate of successful candidates depends on whether the examination was postponed or not. The institute said those who took the Level I exam in August without any delays or interruptions had a passing rate of 50%, while candidates who missed their exam at least once had a passing rate of 29%.
“Our data consistently shows that staying on schedule is one of the strongest predictors of test success,” Wiese said.
The results of Level II candidates who appeared for the exam in August are due on Thursday.
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