The morning session of the 2026 Berkshire Hathaway annual shareholders' meeting was dominated by discussions on artificial intelligence (AI). CEO Greg Abel, the designated successor to Warren Buffett, stated that the company maintains a cautious stance towards AI and will not adopt the technology simply for its own sake.

Speaking on Saturday, May 2, Abel emphasized that any technological deployment must create tangible value for the business. He revealed that the company is exploring practical applications for AI within its core operations, such as its railroad business, while remaining highly vigilant about associated cybersecurity risks.

In a contrasting tone, Vice Chairman of Insurance Operations Ajit Jain expressed skepticism, suggesting that AI is still years away from handling complex decisions like pricing and claims. He also explicitly dismissed the idea of AI possessing stock-picking capabilities.

The meeting took an unexpected turn with the appearance of a deepfake video of Warren Buffett, which prompted the investment giant's leadership to offer extensive commentary on both the risks and opportunities presented by AI.

Greg Abel: "No Adoption of AI for AI's Sake"

Diverging from the fervor seen in Silicon Valley and Wall Street to overhaul businesses around AI, Berkshire Hathaway has adopted a highly pragmatic approach to the emerging technology.

When questioned about the company's AI strategy, Abel's response echoed Buffett's longstanding investment philosophy. He stated that AI must provide substantial benefits to their operations and that deployment would be focused and guided by the goal of creating real value. Abel was direct, saying they would absolutely not pursue AI merely as a trend.

Regarding future investments, Abel indicated that Berkshire would not blindly follow companies simply because they are in the tech sector. Any investment decision must return to fundamental analysis: understanding the business, its opportunities and risks, and its economic prospects over the next five to ten years.

Addressing the strain AI-driven data centers are placing on regional power grids, Abel argued that hyperscale data centers and their users must bear the full cost of their energy consumption. This comes amid concerns from advocacy groups about rising electricity bills for households due to the massive expansion of data centers across the United States.

Human Judgment Remains Berkshire's Moat: AI is a Tool, Not a Decision-Maker

Ajit Jain, head of Berkshire's insurance operations, made it clear that despite the AI hype sweeping the insurance industry, human judgment retains an irreplaceable competitive advantage in core decision-making areas like pricing and claims, and AI cannot replace it in the short term.

Jain acknowledged that if AI lives up to its predictions, it could be a significant game-changer. However, he noted that currently, AI is primarily seen as a tool for boosting productivity, reducing labor costs, and handling routine, repetitive tasks. He explicitly stated that the application of AI for complex decisions in areas like pricing and claims is still "years away." Jain added that anyone expecting AI to advise on which stocks to buy or sell should not count on it happening.

Nevertheless, AI is creating incremental value in specific business applications. CEO Abel supplemented this by sharing a real-world example of the insurance team using AI to enhance underwriting efficiency. He explained that while traditional underwriters might focus on the top five risks, technology now allows for clear assessment of an additional fifteen risks. Abel concluded that leveraging AI effectively in business while remaining aware of its evolving nature represents an appropriate stance.

AI Drives Transformation at BNSF Railway

Regarding the BNSF railway business, which faces pressure from declining freight volumes, technology enablement, including AI, is seen as a key avenue for maintaining profit margins and competitive advantage.

Abel stated that AI undoubtedly has potential applications across their other businesses. He mentioned that Berkshire would build necessary solutions internally and offer them to customers, acknowledging this as a significant challenge that will not be achieved overnight.

A BNSF executive, Katie, presented notable operational data, revealing that in the first quarter of this year, the railroad handled more freight volume than in the same period last year while using 260 fewer locomotives, achieved through measures like improving single-car efficiency. She indicated that BNSF is actively recruiting data scientists and experts to explore technologies like "digital twins." This involves creating simulated models of the railroad network to test operations before implementation and provide customers with predictive arrival times, aiming to accelerate asset turnover and compete more effectively with trucking. BNSF has undergone multiple rounds of layoffs in 2024 and 2025 due to freight volume declines.

Deepfake Buffett Appearance Highlights Cybersecurity Risks

At the start of the Q&A session, a surprising video played on the stadium screens. A man in a suit, introducing himself as "Warren, from Omaha," asked Abel why shareholders should continue holding Berkshire stock over the long term, given his age of 95 and possession of "nothing but time and Cherry Coke."

Abel then revealed the truth: the video was not real but a deepfake created using AI technology, produced without Warren Buffett's participation or authorization. He used the moment as a lesson on risk. Abel stated that it served as a good warning for their team, highlighting a significant risk that Berkshire contends with daily.

In response to the AI-generated Buffett's question about holding the stock, Abel pointed to the company's massive cash reserves. He explained that holding cash and U.S. Treasury bonds serves multiple purposes and ensures the company is not beholden to anyone. Abel emphasized that this enormous cash pile, amounting to $397 billion, provides Berkshire with the flexibility to act decisively in any market environment, whether for acquisitions, share buybacks, or even investing in AI when genuine value is identified.