LLMs like ChatGPT can perform data analysis at a fraction of the human cost with comparable performance: study
- Preliminary findings are in study of LLMs by Alibaba’s Damo Academy and Singapore’s Nanyang Technological University
- The cost of GPT-4, the latest version of the LLM developed by US start-up OpenAI is only 0.45 per cent of hiring a senior data analyst, study finds
Using large language models (LLM) like GPT-4 in data analysis costs less than 1 per cent of hiring a human analyst while turning in comparable performances, according to a recent study that highlights the potential threat to job security amid increased adoption of generative artificial intelligence (AI) in various industries.
Alibaba owns the South China Morning Post.
In the study, the researchers gave questions and provided the data, and automated the whole data analytics process using GPT-4 to extract and analyse data, to eventually produce insights and graphs.
The results of the analysis were compared with professional human data analysts in terms of performance, time and costs.
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The experiments showed that GPT-4 is not just significantly cheaper than a human data analyst, but also much faster in completing the tasks, according to the study findings.