Berkshire Hathaway Inc. Vice Chairman Charlie Munger has repeatedly expressed skepticism about the growing enthusiasm surrounding artificial intelligence (AI).
Speaking at the recent Zoomtopia conference, Munger said, "I think it's getting a huge amount of hype. And I think it's probably getting more than it deserves."
This view was not a one-off comment. Munger shared similar sentiments earlier this year, notably telling CNBC that AI is not going to cure cancer.
Even as AI continues to capture the public's attention, Munger's comments come at a time when companies in Berkshire Hathaway's $350 billion portfolio, such as Apple Inc. and Bank of America Corp., are significantly investing in AI technologies.
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Apple, which makes up 47.2% of Berkshire's portfolio, has been integrating AI into its consumer devices. The A17 Pro central processing unit (CPU) chip in the new iPhone 15 is designed to handle AI workloads, including predictive text and the Siri voice assistant.
Bank of America, constituting 8.1% of Berkshire's holdings, launched an AI chatbot named Erica in 2018. The chatbot has logged 1.5 billion interactions since its inception, assisting the bank in reducing the operational costs associated with customer service.
American Express, a credit card company that holds a 6.6% share of Berkshire's portfolio, is using machine learning to counteract fraud. In 2020, the company rolled out an advanced system developed over a decade for this purpose.
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Even The Coca-Cola Co., which accounts for 6.2% of Berkshire's portfolio, is dipping its toes into AI. The company recently launched Coca-Cola Y3000 Zero Sugar, a new beverage formulated with the assistance of AI technology.
Despite Munger's skepticism, it's evident that Berkshire Hathaway's investments are deeply tied to companies that are adopting AI. While the market at large continues to be bullish on AI, Munger's cautionary stance raises questions about the technology's actual impact versus its perceived potential.
With the stock prices of companies like C3.ai soaring, often without a consistent focus, Munger's perspective offers a counter-narrative that could be worth considering for both investors and tech industry stakeholders.
In contrast to Munger's skepticism about the hype surrounding AI, his partner Warren Buffett sees the technology as a significant advancement. While not entirely optimistic, Buffett recognizes that AI offers unique investment opportunities. This divergence in views is especially noteworthy given that Berkshire Hathaway holds substantial stakes in AI-adopting companies like Apple and Bank of America.
For investors inclined to side with Buffett's tempered enthusiasm, platforms like StartEngine offer an accessible entry point. StartEngine allows people to capitalize on the ground-level opportunities in emerging AI startups, underscoring Buffett's view of the technology as a potential game-changer. And it takes as little as a few hundred dollars to get started.
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