Berkshire Hathaway chairman Warren Buffett. — Reuters
NEBRASKA: A Berkshire Hathaway shareholder wants a committee of independent directors to oversee risks associated with artificial intelligence (AI) at the dozens of companies in Warren Buffett’s conglomerate.
Tulipshare, an activist investor group based in London, said it submitted a shareholder resolution for Berkshire’s annual meeting on May 3 to create the committee.
It said improper use of AI could result in data leaks, privacy intrusions, business disruptions and human-rights abuses, and that Berkshire’s influence in many industries gives Buffett’s company a unique opportunity to be a leader in AI governance.
Buffett’s assistant Debbie Bosanek said Berkshire will include Tulipshare’s proposal in its proxy statement.
At Berkshire’s annual meeting last May, Buffett told shareholders he knew nothing about AI but did not deny its importance, saying it had “enormous potential for good and enormous potential for harm”.
He said he had become a “little nervous” recently when he saw an image on a screen that looked and sounded like him, but delivered a message that in “no way came from me”. Buffett recently owned 14.4% of Berkshire’s stock but controlled 30.2% of Berkshire’s voting power, making it difficult for shareholder proposals to pass without his support.
Additionally, he and other directors routinely oppose issuing reports or creating independent board committees to review Berkshire’s operating businesses, citing the decentralisation that lets the businesses operate largely without interference from the top.
A proposal last year to have independent directors oversee safety at Berkshire’s BNSF railroad drew just 3.6% support from shareholders.
Tulipshare said an AI committee aligns with Omaha, Nebraska-based Berkshire’s business model by providing “unified oversight and expertise” on the risks, while subsidiaries handle day-to-day operations.
It said Buffett’s voting power could augur well for the proposal, citing “personal anecdotes he has shared regarding deepfakes that have targeted him in an effort to spread misinformation”.
Berkshire also owns Geico car insurance, Berkshire Hathaway Energy, Brooks running shoes, See’s Candies, and a variety of industrial, chemical and other retail businesses.
The company also invests in stocks such as Apple and Amazon.com, which Tulipshare said it also owns. Tulipshare does not disclose overall assets under management. Buffett, 94, has run Berkshire since 1965. — Reuters
