In Omaha, Nebraska, Warren Buffett, the CEO of Berkshire Hathaway, expressed both optimism and concern regarding artificial intelligence (AI) during the company’s annual shareholders meeting.
Buffett acknowledged the immense potential of AI for positive impact but also highlighted its potential for misuse and harm. He recounted a personal experience where he encountered an AI-generated image and voice that closely mimicked his own, raising concerns about the potential for fraudulent activities.
Drawing parallels to the emergence of nuclear weapons, Buffett emphasized the need for cautious consideration of AI’s capabilities. He likened AI to a powerful genie that, once unleashed, is difficult to control or contain.
In the realm of investing, analysts have largely been bullish about AI’s potential to enhance productivity across various sectors. However, Buffett cautioned about the disruptive effects of AI on labor-intensive industries, which could lead to significant changes in the workforce and leisure time for workers.
Greg Abel, vice chairman of Berkshire’s non-insurance businesses, echoed Buffett’s sentiments, noting that the full impact of AI is still being understood, and its effects on businesses are in the early stages.
Buffett’s cautious approach to technological advancements, including AI, is consistent with his overall investment philosophy, which prioritizes long-term stability and considers potential downside risks.
Despite his reservations about AI and its potential risks, Buffett maintains his optimistic outlook on the U.S. economy and stock market, citing his familiarity with the country’s strengths and weaknesses compared to other regions globally.
