Berkshire Hathaway’s influence on the planet and society at large is irrefutable as it continues to make the list of the top 10 largest companies in the world with a market capitalization of over $1 trillion. Many of Berkshire’s portfolio companies are also in Tulipshare’s investment portfolio, including major tech companies Apple and Amazon. 

When thinking about artificial intelligence (“AI”), it’s likely that you associate it with technology-centric companies—and you would be correct to do so—but AI and its yet-to-be-realized potential goes far beyond the scope of tech firms. Artificial intelligence impacts nearly any industry you could imagine. Apple recently released its iPhone 16 models which are equipped with the company’s own form of AI called “Apple Intelligence,” which is a suite of AI features that use generative models to help users with everyday tasks. Meanwhile, Amazon Web Services (“AWS”) is the world’s largest cloud computing provider and continues to grow alongside the demand for AI across businesses. But, AI also has a major influence over the less obvious companies in Berkshire’s (and Tulipshare’s) portfolio by improving efficiency, customer service, and product quality while also reducing costs. Think of sectors like insurance, healthcare, finance, manufacturing, transportation, retail, and even agriculture. 

Harvard Law School Forum forecasts that AI will become an increasingly hot topic across all industries as companies see the opportunity to gain efficiency and drive growth through the adoption of AI (while not ignoring upcoming regulatory obligations and rising investor expectations), and investors want companies to adopt AI to enhance or at least uphold their competitiveness (but they are also increasingly worried about the impact of AI usage on people and the planet). This concern has led to increased scrutiny of AI governance and a rise in AI-related investor engagement.

Berkshire Hathaway’s CEO and Chairman Warren Buffett has repeatedly acknowledged that artificial intelligence is “enormously important,” and investors agree. At Berkshire’s 2024 AGM, Buffett likened AI to the creation of the atomic bomb due to its “enormous potential for good and enormous potential for harm.” Buffett himself has already fallen victim to a scam in which his image and voice were replicated by an AI-backed tool, and they were so convincing that Buffet said they could have fooled his own family. Similarly, misinformation and disinformation have been on the rise lately thanks to AI-generated images and videos pertaining to the US presidential election. 

The White House Office of Science and Technology Policy has set ethical guidelines for directing the development, use and implementation of artificial intelligence, including the principles of: safe and effective systems, algorithmic discrimination protections, data privacy, notice and explanation, and human alternatives, consideration, and fallback. But the regulatory landscape has yet to catch up with the ever-evolving uses and impacts of AI, and Berkshire Hathaway is uniquely situated to have a precedent-setting impact on its own operations as well as the companies in which it invests. This is why Tulipshare has submitted a proposal for inclusion in Berkshire’s 2025 proxy statement which requests that the company charter a new committee of independent directors on artificial intelligence to address risks associated with the development and deployment of AI systems across its own operations as well as its portfolio companies. Tulipshare believes that appointing a dedicated AI committee will enhance accountability to shareholders by clearly identifying which directors are responsible for AI-related risks. Given Berkshire’s investment portfolio which includes companies maintaining a leading role in developing and deploying AI technology and the fundamental and significant risks that AI poses to human rights, Tulipshare further believes that appointing a Board-level committee is warranted and appropriate as a matter of good corporate governance.