When it comes to choosing between AI and Berkshire Hathaway veteran Ajit Jain, CEO Warren Buffett is clear where he stands- Ajit Jain. Answering a query on the role of AI as a part of the Berkshire Hathaway Annual General Meeting, Buffett said, “I wouldn't trade everything that's developed in AI in the next 10 years for Ajit.” He added, that if one gave him a choice of having $100 billion participate in the insurance, property, cash, and insurance business for the next 10 years, and a choice of getting the top AI product out of whoever is developing it, or having a chief making the decision, he would take Ajit at any time.
Jain, Berkshire Hathaway’s Vice Chairman of Insurance Operations, acknowledged the transformative potential of AI in the industry, but urged the need for caution over hype.
“There is no question in my mind that AI is going to be a real game-changer,” Jain said. “And it's going to change the way we assess risk, we price risk, we sell the risk, and then the way we end up paying claims.”
But unlike many competitors pouring capital into AI initiatives, Jain made it clear that Berkshire is taking a more measured approach.
“Having said that, I certainly also feel that people end up spending an enormous amount of money trying to chase the next new, fashionable thing. We are not very good in terms of being the fastest or the first mover. Our approach is more to wait and see until the opportunity crystallizes, and we have a better point of view in terms of risk of failure, upside, downside.”
He added, “Right now, the individual insurance operations do dabble in AI, trying to figure out what is the best way to exploit it. But we have not yet made a conscious, big-time effort in terms of pouring a lot of money into this opportunity. And my guess is we will be in a state of readiness. And should that opportunity pop up, we'll be in a state where we'll jump in promptly. ”
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