Warren Buffett: "AI-Created Version of Me Indistinguishable... Introduced in Some Businesses"

Annual General Meeting Warns of AI Risks
13% of Apple Stock Holdings Sold in Q1

"By developing nuclear weapons, we have released the genie from the lamp. AI is similar. It has aspects that have escaped the lamp."

'Investment genius' Warren Buffett, chairman of Berkshire Hathaway, once again warned about the dangers of artificial intelligence (AI). He likened AI to the genie released from a magic lamp. At the same time, he referenced nuclear weapons development. He warned that fraud using AI could become a 'growth industry' and bring destructive consequences.

Warren Buffett, Chairman of Berkshire Hathaway (left), is attending the Berkshire Hathaway Annual Shareholders Meeting held on the 3rd in Omaha, Nebraska, USA.
[Photo by Reuters/Yonhap News]

According to The Wall Street Journal (WSJ) and CNBC, Buffett emphasized the risks of AI at Berkshire Hathaway's annual shareholders meeting held on the 4th (local time) in Omaha, Nebraska, USA.

He mentioned AI's potential as a means of fraud, saying, "If I were interested in investing in fraud, (fraud using AI) would be the biggest growth industry ever," CNBC reported. Buffett said he saw images of himself created by AI on the screen and remarked, "The images and videos made using AI are so convincing that it is virtually impossible to distinguish whether they are real or not." He jokingly added, "I might send money to myself in some strange country." This statement is interpreted as recognizing AI's significant technological growth while expressing concerns about its misuse.

Deepfake is a compound word of deep learning and fake, referring to fake images, audio, and videos created based on artificial intelligence (AI) technology. He was referring to videos demanding investments featuring a 'fake Buffett' created using such AI technology.

Buffett also compared AI to the atomic bomb at last year's shareholders meeting. He warned that "the development of the atomic bomb was a tremendous technological advancement, but the damage was also enormous," and that AI could bring great harm to humanity if misused.

"Apple, American Express, and Coca-Cola will be retained"

Chairman Warren Buffett (right) is shaking hands with Pat Egan, CEO of See's Candy, in front of the See's Candy booth at the Berkshire Hathaway shareholders meeting held on the 3rd in Omaha, Nebraska, USA.
[Photo by AP/ Yonhap News]

Separately from Buffett's warnings, Greg Abel, vice chairman and Buffett's designated successor, announced that Berkshire Hathaway has begun introducing AI into some businesses to improve work efficiency.

He did not specify which businesses. However, he said, "We are studying ways to integrate AI to make certain tasks more effective and safer," adding, "AI can replace labor, but we hope it will also create new opportunities."

Meanwhile, Berkshire Hathaway disclosed in its earnings report released that day that it held $189 billion (about 257 trillion KRW) in cash and cash equivalents as of the end of the first quarter. This is a record high. Buffett projected that this amount could increase to $200 billion (about 272 trillion KRW) by the end of the second quarter.

Berkshire sold about 13% of its Apple shares in the first quarter of this year, holding $135.4 billion (about 184 trillion KRW) worth of Apple shares as of the end of March. Apple’s stock price fell 11% in the first quarter due to sluggish iPhone sales in China and other factors, leading to speculation in the market that Buffett might have a negative view of Apple's future.

However, Buffett said it is very likely that Apple will remain the largest holding in his investment portfolio by the end of this year. He said, "Unless something truly extraordinary happens, Abel will still hold Apple, American Express, and Coca-Cola when he takes over this position."