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Charlie Munger, the Vice Chairman of Berkshire Hathaway Inc., has been consistently vocal about his skepticism regarding the rapidly growing excitement surrounding artificial intelligence (AI).
Munger made his sentiments clear at the recent Zoomtopia conference, stating, “I think it’s getting a huge amount of hype. And I think it’s probably getting more than it deserves.”
This isn’t the first time he’s expressed such views. Munger previously shared similar thoughts, notably when he told CNBC earlier this year that AI isn’t a magic solution to cure cancer.
Interestingly, Munger’s comments come at a time when companies in Berkshire Hathaway’s $350 billion portfolio, including tech giant Apple Inc. and financial institution Bank of America Corp., are making substantial investments in AI technologies.
Apple, representing a significant 47.2% of Berkshire’s portfolio, has been actively incorporating AI into its consumer devices. For instance, the A17 Pro central processing unit (CPU) chip in the latest iPhone 15 is tailored to handle AI-related tasks, such as predictive text and the Siri voice assistant.
Bank of America, comprising 8.1% of Berkshire’s holdings, introduced an AI chatbot named Erica back in 2018. Since its inception, Erica has engaged in 1.5 billion interactions, contributing to cost reductions associated with customer service operations.
Even American Express, a major player in Berkshire’s portfolio with a 6.6% share, is leveraging machine learning to combat fraud. The company rolled out an advanced system developed over a decade to enhance fraud detection.
Even The Coca-Cola Co., making up 6.2% of Berkshire’s portfolio, is venturing into the realm of AI. Recently, the company unveiled Coca-Cola Y3000 Zero Sugar, a new beverage developed with the assistance of AI technology.
Notwithstanding Munger’s skepticism, it’s evident that Berkshire Hathaway’s investments are deeply intertwined with companies embracing AI. While the broader market remains enthusiastic about AI, Munger’s cautious perspective raises pertinent questions about the real impact of this technology compared to the perception of its potential.
In stark contrast to Munger’s reservations about AI’s hype, his business partner Warren Buffett sees AI as a significant technological leap. Although not overly optimistic, Buffett recognizes the unique investment opportunities AI offers. This divergence of opinions is particularly noteworthy given Berkshire Hathaway’s substantial stakes in AI-adopting companies like Apple and Bank of America.
For investors who lean toward Buffett’s measured enthusiasm, platforms like StartEngine present an accessible entry point. StartEngine allows individuals to tap into emerging AI startups, aligning with Buffett’s belief in AI’s potential as a game-changer. And the best part is that it takes only a modest investment, often just a few hundred dollars, to get started.
