Warren Buffett's Cautionary Comparison: AI's Impact Echoes Nuclear Weapons

Warren Buffett expressed concerns about artificial intelligence during his annual shareholder meeting in Omaha, Nebraska. The 93-year-old co-founder, chairman, and CEO of Berkshire Hathaway issued a strong warning about the potential risks associated with this technology.

"We unleashed a powerful force when we created nuclear weapons," he mentioned over the weekend. "AI is similar in a way - it's like it's starting to emerge."

The respected investor admitted to not fully understanding the technology behind AI, but expressed concerns about its possible consequences. He shared that his appearance and voice were replicated by an AI tool, and the results were so realistic that even his own family could have been deceived. He also warned that fraudulent activities using these advanced fake videos will probably become more common.

He told the crowd that investing in scamming would be the growth industry of all time.

Greg Abel, the expected successor to Buffett who runs Berkshire’s non-insurance operations, mentioned on Saturday that Berkshire Hathaway has begun using AI to improve employee efficiency.

“At times it displaces the labor, but then hopefully, there’s other opportunities,” said Abel, who didn’t reveal much detail about how the company plans to use AI.

In this May 7, 2018 file photo, Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview in Omaha, Neb. The world's most expensive lunch will go on sale again this spring when Buffett auctions off a private meal to raise money for a California homeless charity one last time. Buffett held the online lunch auction once a year for 20 years before the pandemic began to raise money for the Glide Foundation, which helps the homeless in San Francisco.

In this photo from May 7, 2018, Warren Buffett, the Chairman and CEO of Berkshire Hathaway, is seen speaking during an interview in Omaha, Neb. The world's most expensive lunch will be up for sale again this spring as Buffett auctions off a private meal to support a California homeless charity one final time.

Buffett has been hosting an annual online lunch auction for the past 20 years to raise funds for the Glide Foundation, a nonprofit organization that assists the homeless population in San Francisco. The auction had to be put on hold due to the pandemic, but now it is back to continue its support for those in need.

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Buffett acknowledged that technology has the potential to bring about positive changes in the world, but he remains cautious. He believes that it has both great possibilities for good and potential risks for harm, and he is unsure about how it will unfold.

The AI revolution has already made significant changes in workplaces globally, with almost 40% of jobs worldwide at risk of being disrupted by AI, as reported by the International Monetary Fund. Various industries, from medicine to finance to music, have already experienced the impact of AI technology.

Shares of companies involved in the AI boom have seen a significant increase in their stock prices. For example, chipmaker Nvidia (NVDA) has experienced a surge of approximately 215% in the past year. Similarly, Microsoft (MSFT) has also seen a rise of about 34%.

In comparison, shares of Berkshire Hathaway (BRK.A) have also shown growth, with an increase of 22% during the same time frame.

Not just Buffett

Buffett isn’t the only major business figure expressing concern about AI scamming.

JPMorgan Chase CEO Jamie Dimon recently shared in his annual shareholder letter that although the full impact of AI on business, the economy, and society is still unknown, he is certain that it will be significant.

OpenAI CEO Sam Altman, left, Google CEO Sundar Pichai and Microsoft CEO Satya Nadella.

OpenAI CEO Sam Altman, left, Google CEO Sundar Pichai and Microsoft CEO Satya Nadella.

AFP/Reuters/Bloomberg/Getty Images

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"We believe that the outcomes will be remarkable and could be as impactful as some of the major technological advancements of the past few centuries, such as the printing press, the steam engine, electricity, computing, and the Internet," stated the CEO of JPMorgan Chase in a letter.

Acknowledging the risks that accompany the rise of artificial intelligence, Dimon also pointed out, "There are individuals misusing AI to breach companies' systems in order to steal funds and intellectual property, or to create chaos and harm."

JPMorgan Chase, the world's largest bank by market capitalization, has reported a significant rise in daily hacking attempts on its systems in the past year. This underscores the growing cybersecurity issues that the bank, along with other Wall Street firms, are grappling with.

Additionally, JPMorgan Chase is delving into the possibilities of generative AI within its own operations, according to Dimon. Various areas such as software engineering, customer service, operations, and overall employee productivity are undergoing transformations with the integration of AI technology.

According to survey results shared exclusively with CNN, forty-two percent of CEOs surveyed at the Yale CEO Summit last summer believe that AI has the potential to destroy humanity within the next five to ten years.

Yale professor Jeffrey Sonnenfeld described the findings as "pretty dark and alarming."

Sonnenfeld mentioned that the survey gathered feedback from 119 CEOs across various industries, such as Walmart CEO Doug McMillon, Coca-Cola CEO James Quincy, leaders from IT companies like Xerox and Zoom, as well as CEOs from pharmaceutical, media, and manufacturing sectors.

A group of AI industry leaders, academics, and even some celebrities have come together to sign a statement alerting about the potential "extinction" threat posed by AI.

A statement signed by top figures in the AI industry, including OpenAI CEO Sam Altman and Google and Microsoft executives, emphasized the need for society to protect against the potential dangers of AI.

The statement highlighted the importance of prioritizing efforts to prevent the risks associated with AI, comparing it to other global threats like pandemics and nuclear war.

Additional reporting by Matt Egan.

Editor's P/S:

Warren Buffett's cautionary remarks about the potential risks of artificial intelligence (AI) resonate deeply with the concerns raised by other prominent business leaders and experts. The fear that AI could be misused for malicious purposes, such as scamming, fraud, and cyberattacks, is a legitimate concern that must be addressed proactively. The fact that AI has the potential to disrupt jobs and displace workers further amplifies the need for careful consideration and responsible development.

It is crucial that policymakers, industry leaders, and society as a whole engage in a thoughtful dialogue about the ethical implications and potential consequences of AI. By fostering a collaborative approach that prioritizes safety, security, and human well-being, we can harness the transformative potential of AI while mitigating the associated risks. It is essential to strike a balance between innovation and responsibility to ensure that the benefits of AI outweigh the potential harms.