Insights / Research BriefMay 30, 2024

Financial Statement Analysis with Large Language Models

Alex G. Kim, Maximilian Muhn, Valeri V. Nikolaev
GPT outperforms financial analysts in predicting companies’ earnings changes, especially when analysts struggle, with accuracy comparable to state-of-the-art machine learning models.
Based on BFI Working Paper No. 2024-65, “Financial Statement Analysis with Large Language Models”