Global Markets

AI scamming will be the next big thing

Warren Buffett expressed caution about the artificial intelligence trend, highlighting the risks associated with the technology. During Berkshire Hathaway’s annual shareholder meeting, Buffett emphasized the potential for AI to be used for scams and fraudulent activities. He mentioned the ability of AI to create realistic content that can deceive individuals into sending money to malicious actors.

AI Scammers have been utilizing AI voice-cloning and deep-fake technology to create misleading videos and images, often impersonating people’s loved ones to solicit funds or personal details. While acknowledging the positive aspects of AI, Buffett admitted his lack of understanding about the technology and its dual potential for both good and harm.

Despite the hype surrounding AI on Wall Street and the surge in stocks like Nvidia and Meta Platforms, which have seen significant gains, Buffett remains skeptical due to his unfamiliarity with AI. He drew parallels between the potential impact of AI and that of the atomic bomb in the 20th century.

Buffett expressed his lack of knowledge about AI, clarifying that it does not imply denial of its existence or significance. He adopted a cautious tone while stating, “We have unleashed a powerful force with nuclear weapons, and this force has been causing immense harm recently. The sheer power of this force is what deeply concerns me.”

Buffett acknowledged the difficulty of reversing the effects of this force, drawing a parallel with AI. He recognized that AI is a step towards progress, playing a crucial role in shaping the future. However, he emphasized that the impact it will have on society remains to be seen. “Whether it will alter the course of society, only time will tell,” Buffett concluded.

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