Text Annotation via Inductive Coding: Comparing Human Experts to LLMs in Qualitative Data Analysis

Angelina Parfenova, Andreas Marfurt, Jürgen Pfeffer, Alexander Denzler


Abstract
This paper investigates the automation of qualitative data analysis, focusing on inductive coding using large language models (LLMs). Unlike traditional approaches that rely on deductive methods with predefined labels, this research investigates the inductive process where labels emerge from the data. The study evaluates the performance of six open-source LLMs compared to human experts. As part of the evaluation, experts rated the perceived difficulty of the quotes they coded. The results reveal a peculiar dichotomy: human coders consistently perform well when labeling complex sentences but struggle with simpler ones, while LLMs exhibit the opposite trend. Additionally, the study explores systematic deviations in both human and LLM-generated labels by comparing them to the golden standard from the test set. While human annotations may sometimes differ from the golden standard, they are often rated more favorably by other humans. In contrast, some LLMs demonstrate closer alignment with the true labels but receive lower evaluations from experts.
Anthology ID:
2025.findings-naacl.361
Volume:
Findings of the Association for Computational Linguistics: NAACL 2025
Month:
April
Year:
2025
Address:
Albuquerque, New Mexico
Editors:
Luis Chiruzzo, Alan Ritter, Lu Wang
Venue:
Findings
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
6456–6469
Language:
URL:
https://preview.aclanthology.org/fix-sig-urls/2025.findings-naacl.361/
DOI:
Bibkey:
Cite (ACL):
Angelina Parfenova, Andreas Marfurt, Jürgen Pfeffer, and Alexander Denzler. 2025. Text Annotation via Inductive Coding: Comparing Human Experts to LLMs in Qualitative Data Analysis. In Findings of the Association for Computational Linguistics: NAACL 2025, pages 6456–6469, Albuquerque, New Mexico. Association for Computational Linguistics.
Cite (Informal):
Text Annotation via Inductive Coding: Comparing Human Experts to LLMs in Qualitative Data Analysis (Parfenova et al., Findings 2025)
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https://preview.aclanthology.org/fix-sig-urls/2025.findings-naacl.361.pdf