Warren Buffett Against Artificial Intelligence: His Worst Enemy, ChatGPT

Berkshire Hathaway’s annual shareholders’ meeting, held last Saturday in Omaha, Nebraska, brought together thousands of investors and supporters of the iconic business couple, Warren Buffett and Charlie Munger, During the event, the two billionaire investors shared their perspectives on the future of the banking system, artificial intelligence, government spending, and other current issues. Some of the most prominent arguments are detailed below.

During Berkshire Hathaway’s annual shareholders’ meeting, Warren Buffett and Charlie Munger addressed a variety of issues related to the future of the global financial and economic system. One of the most pressing issues was the risk of bank failure and the need to protect investor deposits.

Buffett warned that “a lit match can turn into a fire or it can go out,” referring to a possible temporary paralysis of the banking system. Despite the FDIC limiting deposit coverage to $250,000, the United States has more than $1 trillion in uninsured deposits, which could cause a run on banks and disrupt the global financial system. According to Buffett, the FDIC limits on deposit insurance should not apply to prevent investor panic.

Additionally, Buffett and Munger expressed concern about the rise of artificial intelligence and its impact on society and the economy. Although Munger pointed out that the evacuation of city centers in the United States and other parts of the world is going to be significant and quite unpleasant, Buffett drew a parallel between AI and a nuclear bomb in terms of unknown long-term consequences. Both investors shared their skepticism about AI and its ability to outperform human intelligence. According to Buffett, old fashioned wisdom works well enough.

As far as government spending is concerned, Buffett warned that it is foolish to continue printing money and that once confidence in the currency is lost, it may be difficult to regain. In this sense, he pointed to the importance of being careful and not letting the genie out of the bottle.

Finally, Buffett and Munger offer advice to investors on how to achieve financial success. Munger stresses the importance of spending less than you earn, investing wisely, avoiding toxic people and toxic activities, continuing to be a life-long learner, and not giving in to delayed gratification. Buffett, for his part, stressed the importance of making the right decisions, whether in the areas of finance or personal relationships, and maintaining one’s actions. In short, according to Buffett and Munger, financial success lies in making smart decisions and having a long-term perspective.