By Jonathan Stempel
(Reuters) -A Berkshire Hathaway (NYSE:) shareholder needs a committee of impartial administrators to supervise dangers related to synthetic intelligence on the dozens of firms in Warren Buffett’s conglomerate.
Tulipshare, an activist investor group primarily based in London, stated on Tuesday it submitted a shareholder decision for Berkshire’s annual assembly on Might 3 to create the committee.
It stated improper use of AI may lead to knowledge leaks, privateness intrusions, enterprise disruptions and human-rights abuses, and that Berkshire’s affect in lots of industries offers Buffett’s firm a novel alternative to be a frontrunner in AI governance.
Buffett’s assistant Debbie Bosanek stated Berkshire will embrace Tulipshare’s proposal in its proxy assertion.
At Berkshire’s annual assembly final Might, Buffett informed shareholders he knew nothing about AI however didn’t deny its significance, saying it had “monumental potential for good and massive potential for hurt.”
He stated he had turn out to be a “little nervous” not too long ago when he noticed a picture on a display that appeared and appeared like him, however delivered a message that in “no means got here from me.”
Buffett not too long ago owned 14.4% of Berkshire’s inventory however managed 30.2% of Berkshire’s voting energy, making it tough for shareholder proposals to go with out his help.
He and different administrators routinely oppose issuing reviews or creating impartial board committees to evaluation Berkshire’s working companies, citing the decentralization that lets the companies function largely with out interference from the highest.
A proposal final 12 months to have impartial administrators oversee security at Berkshire’s BNSF railroad drew simply 3.6% help from shareholders.
Tulipshare stated an AI committee aligns with Omaha, Nebraska-based Berkshire’s enterprise mannequin by offering “unified oversight and experience” on the dangers, whereas subsidiaries deal with day-to-day operations.
It stated Buffett’s voting energy may augur nicely for the proposal, citing “private anecdotes he has shared relating to deepfakes which have focused him in an effort to unfold misinformation.”
Berkshire additionally owns Geico automobile insurance coverage, Berkshire Hathaway Power, Brooks trainers, See’s Candies, and quite a lot of industrial, chemical and different retail companies.
The corporate additionally invests in shares resembling Apple (NASDAQ:) and Amazon.com (NASDAQ:), which Tulipshare stated it additionally owns. Tulipshare doesn’t disclose total belongings beneath administration.
Buffett, 94, has run Berkshire since 1965.