Advanced AI models can now pass the most challenging level of the Chartered Financial Analyst (CFA) exam in just minutes, according to new research from New York University and AI wealth-management platform GoodFin. This breakthrough represents a significant leap in AI’s financial reasoning capabilities, as Level III of the CFA—focused on portfolio management and wealth planning—previously stumped AI systems due to its complex essay questions.
What you should know: Researchers tested 23 large language models on mock CFA Level III exams, finding that frontier reasoning models successfully passed using advanced prompting techniques.
- The study evaluated models including o4-mini, Gemini 2.5 Pro, and Claude Opus on both multiple choice and essay questions.
- These AI systems used “chain-of-thought prompting”—a technique that helps AI break down complex problems step-by-step—to demonstrate specialized analytical reasoning required for professional financial decision-making.
- For context, human candidates typically spend around 1,000 hours studying over several years to pass the three-part CFA exam.
The big picture: AI’s rapid evolution has dramatically expanded its capabilities in professional finance, moving from basic exam levels to the most sophisticated analytical challenges.
- Previous research from two years ago showed AI could handle CFA Levels I and II but struggled with Level III’s essay components.
- The technology has advanced so quickly that researchers wanted to test whether current models could tackle the exam’s most demanding analytical requirements.
What they’re saying: Industry leaders see transformative potential but acknowledge current limitations.
- “I think there’s absolutely a future where this technology transforms the industry,” said Anna Joo Fee, founder and CEO of GoodFin.
- However, Fee doesn’t believe AI will replace the CFA designation entirely: “There are things like context and intent that are hard for the machine to assess right now. That’s where a human shines, in understanding your body language and cues.”
Why this matters: This development signals AI’s growing sophistication in complex financial analysis, potentially reshaping how financial professionals approach portfolio management and wealth planning while highlighting the continued importance of human judgment in client relationships.
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