Buffett and Jain Share Cautious Views on AI in Insurance

OMAHA, Neb. — Warren Buffett, CEO of Berkshire Hathaway, and Ajit Jain, the company’s top insurance executive, expressed cautious views on the effects of artificial intelligence (AI) in the insurance industry during a recent update.

Jain emphasized the potential of AI, saying, “There is no question in my mind that AI is going to be a real game changer.” He noted that AI will impact how companies assess risk, price it, sell it, and manage claims.

However, Jain also pointed out the risks of hasty investments in trendy technologies. “I certainly feel that people end up spending an enormous amount of money trying to chase the next new, fashionable thing,” he added. He stated that Berkshire Hathaway prefers a more cautious approach, waiting for opportunities to become clearer before making significant investments in AI.

Currently, Jain mentioned that individual insurance operations at Berkshire Hathaway are exploring AI but have not yet committed large resources to the technology. “We have not yet made a conscious big-time effort in terms of pouring a lot of money into this opportunity,” he said.

Looking ahead, Jain expressed optimism about being prepared for future opportunities. “My guess is we will be in a state of readiness. And should that opportunity pop up, we’ll be in a state where we’ll jump in promptly,” he concluded.