Warren Buffett Warns of AI Dangers

Warren Buffett warns of AI fraud; Deepfakes could target investors, says the billionaire.

Recently, at Berkshire Hathaway’s annual shareholder meeting, co-founder Warren Buffett commented on artificial intelligence (AI) deepfakes and the perpetuation of fraudsters.  

In the first five months of 2024 alone, Buffett, the ninth wealthiest person in the world as of April 2024, has witnessed an increase of approximately $16 billion. Ahead of the shareholders meeting convened in Omaha, Nebraska, he commended the organization’s expansion and fortitude in the face of vice chairman Charlie Munger’s demise in November 2023.

However, the discussion swiftly shifted to AI as the meeting progressed. Buffett stated during a question-and-answer segment, “My lack of knowledge regarding AI does not imply that I reject its existence, significance, or anything else of the sort.” 

Following this promising beginning, He drew a parallel between the emergence of AI technologies in illicit financial activities and the spread of nuclear weapons.

According to the 93-year-old magnate, this originated from an encounter in which he encountered a deepfake doppelganger who exhibited an identical appearance, attire, gait, and speech to himself. 

A transcript of the meeting indicates:

“I mean, scamming has always been part of the American scene, but this would make me, if I was interested in investing in scamming, it’s going to be the growth industry of all time. And it’s enabled in a way. Obviously, AI has potential for good things too but I don’t know how you, based on the one I saw recently, I practically would send money to myself over and over in some crazy country.”

Although Buffett has previously expressed concern over the frightening potential of artificial intelligence, it is noteworthy that most of Berkshire Hathaway’s holdings are in Apple, the second most valuable company in the world. 

Microsoft, which invested extensively in ChatGPT developer OpenAI, essentially strapped itself to a rocketship and supplanted the Cupertino company as the number one player. 

Since then, Apple has been engaged in a process of catching up. Most of the organization’s public-facing efforts are devoted to generative AI products.