Berkshire shareholder seeks committee to oversee AI at Buffett's company

By Jonathan Stempel

(Reuters) - A Berkshire Hathaway (NYSE:BRKa ) shareholder wants a committee of independent directors to oversee risks associated with artificial intelligence at the dozens of companies in Warren Buffett's conglomerate.

Tulipshare, an activist investor group based in London, said on Tuesday it submitted a shareholder resolution for Berkshire's annual meeting on May 3 to create the committee.

It said improper use of AI could result in data leaks, privacy intrusions, business disruptions and human-rights abuses, and that Berkshire's influence in many industries gives Buffett's company a unique opportunity to be a leader in AI governance.

Berkshire did not immediately respond to a request for comment. Tulipshare did not immediately respond to requests for additional comment.

At Berkshire's annual meeting last May, Buffett told shareholders he knew nothing about AI but did not deny its importance, saying it had "enormous potential for good and enormous potential for harm."

Buffett recently owned 14.4% of Berkshire's stock but controlled 30.2% of Berkshire's voting power, making it difficult for shareholder proposals to pass without his support.

He and other directors routinely oppose issuing reports or creating independent board committees to review Berkshire's operating businesses, citing the decentralization that lets the businesses operate largely without interference from the top.

A proposal last year to have independent directors oversee safety at Berkshire's BNSF railroad drew just 3.6% support from shareholders.

Berkshire also owns Geico car insurance, Berkshire Hathaway Energy, Brooks running shoes, See's Candies, and a variety of industrial, chemical and other retail businesses.



The Omaha, Nebraska-based company also invests in stocks such as Apple (NASDAQ:AAPL ) and Amazon.com (NASDAQ:AMZN ), which Tulipshare said it also owns.

Buffett, 94, has run Berkshire since 1965.

Source: Investing.com