During Warren Buffett annual shareholder meeting in Omaha, Nebraska, the 93-year-old co-founder, chairman, and CEO of Berkshire Hathaway delivered a strong warning about the potential risks of technology. Comparing it to the development of nuclear weapons, he stated that artificial intelligence (AI) is slowly emerging and could have significant consequences.
Despite admitting Warren Buffett limited understanding of AI technology, the renowned Oracle of Omaha expressed his concerns about its potential negative impacts. He revealed that his own image and voice were recently replicated by an AI tool, and the results were so convincing that even his own family could have been fooled. He also predicted that scams utilizing these deep fakes would become increasingly prevalent, making scamming a highly profitable industry.
On the other hand, Berkshire Hathaway has already begun implementing AI in its own operations to enhance employee efficiency. Greg Abel, the expected successor to Warren Buffett, who oversees the company’s non-insurance operations, mentioned that while AI may displace some jobs, it also creates new opportunities. However, Warren Buffett remains skeptical about the technology’s overall impact, acknowledging its potential for both good and harm.
The AI revolution has already caused significant transformations in various industries worldwide, with the International Monetary Fund estimating that nearly 40% of global employment could be disrupted by AI. As a result, companies associated with the AI boom, such as Nvidia and Microsoft, have experienced substantial increases in their stock prices. Similarly, Berkshire Hathaway’s shares have also seen a notable rise of 22% over the past year.
In his annual shareholder letter last month, Jamie Dimon, the CEO of JPMorgan Chase, expressed his uncertainty about the full impact of AI on business, the economy, and society. However, he emphasized that its influence will undoubtedly be significant. Dimon compared the potential consequences of AI to major technological inventions throughout history, such as the printing press, the steam engine, electricity, computing, and the Internet.
He acknowledged the risks associated with the AI boom, including the use of AI by malicious actors to infiltrate systems and cause harm. JPMorgan Chase itself has experienced a rise in attempted cyberattacks, highlighting the growing cybersecurity challenges faced by the bank and other Wall Street firms. Despite these risks, JPMorgan Chase is actively exploring the potential of generative AI within its own ecosystem, particularly in areas such as software engineering, customer service, operations, and employee productivity.
A survey conducted at the Yale CEO Summit revealed that 42% of CEOs believe AI has the potential to pose a threat to humanity within the next five to ten years. This finding has raised concerns among experts, including Yale professor Jeffrey Sonnenfeld, who described it as “dark and alarming.” The survey included responses from 119 CEOs representing various industries, including retail, IT, pharmaceuticals, media, and manufacturing. The growing concerns about AI’s potential impact have led numerous industry leaders, academics, and even celebrities to sign a statement warning of the risk of “extinction” posed by AI.
