AI dominated the morning session of the Berkshire annual meeting; CEO: We won’t pursue AI just for the sake of AI, Executive: Don’t expect AI to tell you which stock to buy.

AI dominated the morning session of the Berkshire annual meeting; CEO: We won’t pursue AI just for the sake of AI, Executive: Don’t expect AI to tell you which stock to buy.

AI themes dominated the morning session of the Berkshire annual meeting, with Berkshire’s CEO stating that the company will plan rationally.

On Saturday, May 2 local time, at the morning session of the 2026 Berkshire shareholders’ meeting, Buffett’s successor Greg Abel stated that Berkshire holds a cautious position on AI and will not pursue AI for AI’s sake.

CEO Greg Abel emphasized that technology deployment must genuinely create value for the business. The company is exploring ways to implement AI around core businesses such as railroads and is highly vigilant regarding cybersecurity risks posed by AI.

Ajit Jain, Vice Chairman of Insurance Business, cooled expectations, stating that “it will take years” for AI to complete complex decisions such as pricing and claims, and directly denied AI’s ability to pick stocks.

A deepfake video of Buffett generated by artificial intelligence caught shareholders off guard onsite, immediately prompting the investment giant to make a profound statement regarding both the risks and opportunities of AI.

Greg Abel: “Never AI for AI’s Sake”

Unlike the current frenzy in Silicon Valley and Wall Street to reshape business around AI, Berkshire has taken an extremely pragmatic stand on this emerging technology.

In response to external inquiries about Berkshire’s AI plans, Abel’s answers reflected Buffett’s consistent investment philosophy. He said:

AI must bring substantive gains to our business. We will deploy AI in a focused way, oriented toward creating real value.

He revealed that Berkshire’s AI deployments will be narrow and specific, centering on value creation. Abel bluntly stated:

We will never pursue AI for AI’s sake.

When asked about whether the company would favor technology companies with robust cash flows in the future, Abel emphasized that Berkshire would never blindly follow simply because a company is in the tech sector. Every investment must return to fundamentals:

Do we understand this business? Do we comprehend its opportunities and risks? Most importantly, what is its economic outlook for the next 5 to 10 years?

Facing the enormous pressure from the AI wave on regional power grids, Abel called for the energy costs of data centers to be separated from ordinary grid consumers. Abel said:

Large-scale data centers and their electricity users must bear the full cost.

Previously, environmental and consumer advocacy groups had pointed out that as data centers continue to expand across the U.S., electricity connection requests have already reached hundreds of gigawatt levels, causing a surge in home electricity bills and exacerbating the energy burden.

Human Judgment Remains Berkshire’s Moat: AI Is a Tool, Not a Decision Maker

Berkshire Hathaway insurance leader Ajit Jain made it clear that despite the AI boom within the insurance industry, human judgment retains irreplaceable competitive advantages in core decision areas such as pricing and claims, and AI cannot replace this in the short term.

Vice Chairman of Insurance Ajit Jain said:

If AI becomes reality as predicted, no doubt it will be a huge game changer. But for now, what we see is AI as a tool for boosting productivity, used to reduce labor costs and handle routine, repetitive tasks.

He clarified that it will take “years” for AI to be applied to complex decisions like pricing and claims. Jain said:

If you expect AI to tell you which stock to buy or sell, I don’t think that will happen.

However, in specific business applications, AI has indeed brought incremental value. CEO Abel supplemented with a real example of the insurance team using AI to improve underwriting efficiency.

Abel stated that while traditional underwriters might only focus on the five biggest risks, now with technology “clear judgments can be made on the other fifteen risks as well.” Abel summed up:

So by wisely utilizing AI in business and recognizing that it is still constantly evolving, I believe this is an appropriate attitude.

AI Drives BNSF Railway Transformation

In discussing the BNSF railroad business facing declining freight volumes, technology empowerment has become the key imaginative space for maintaining profit margins and competitive advantage.

Abel said:

Undoubtedly, this (AI) can be used in our other businesses. We will build what we need ourselves and provide solutions to customers. This is a huge challenge and will not be achieved overnight.

BNSF executive Katie disclosed impressive operational data at the meeting:

By improving individual car operational efficiency and other measures, in the first quarter of this year, we handled more freight than in the first quarter last year, but used 260 fewer locomotives.

She noted that BNSF is aggressively recruiting data scientists and experts, exploring “digital twins” technology to model the railway network before actual operation and provide predictive estimated times of arrival (ETA) for customers, thereby accelerating asset turnover and countering competition from truck transport.

BNSF has come under pressure from declining freight volumes in recent years, undergoing multiple rounds of layoffs in 2024 and 2025.

At the start of the Q&A session, a stunning scene appeared on the arena’s big screen.

A man in a suit claiming “Warren, from Omaha” asked Abel:

I am 95 years old now and have nothing but time and cherry coke. I want to know, why should shareholders hold Berkshire stock for the long term?

Abel then revealed the truth: this was not a real video, but a deepfake video made using AI technology, with absolutely no involvement or authorization from Buffett himself. He immediately turned the moment into a lesson about risk.

Abel stated:

This was a good warning for our team; it’s a major risk faced throughout Berkshire and something we deal with every day.

In response to the AI version of Buffett’s question about “why continue to hold Berkshire,” Abel anchored the answer in the company’s massive cash reserves. Abel said:

We hold cash and U.S. Treasury bonds for several purposes. We don’t intend to be beholden to anyone.

He emphasized that it is this staggering amount of cash, $397 billion, that empowers Berkshire to act with confidence in any market environment, whether it’s mergers, buybacks, or investing in AI when real value is seen.

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