Artificial intelligence (AI) has become a buzzword in the tech industry, but legendary investors Warren Buffett and Charlie Munger are skeptical about its true potential. While some companies are investing heavily in AI, Buffett and Munger argue that "old-fashioned intelligence works pretty well." They also liken the disruptive nature of AI to the atomic bomb, questioning whether it is good for the next 200 years of the world.
Despite the excitement surrounding AI, some tech founders have warned of its dangers, and IBM's CEO has said it could replace thousands of jobs at the company. Buffett also expressed concern about the technology's ability to do "all kinds of things" and the difficulty of "un-inventing" it once it's created.
Microsoft has emerged as a leader in AI, investing $10 billion in OpenAI and presenting some of its technology to Buffett. However, even Microsoft's AI couldn't tell jokes, which led Buffett to question its true potential.
Buffett and Munger have been unimpressed with other trendy stock plays like cryptocurrency, with Munger calling it a "venereal disease." As a result, it's unlikely that Berkshire Hathway will go all in on AI anytime soon.
Buffett summed up his skepticism about AI by saying, "With AI, it can change everything in the world, except how men think and behave. And that's a big step to take." While AI may be useful in certain applications, it's important not to get caught up in the hype and to remember the limitations of technology.
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