Berkshire shareholder seeks artificial intelligence oversight board at Buffett’s Reuters company
By Jonathan Stempel
(Reuters) – A Berkshire Hathaway (NYSE: ) shareholder wants a board of independent directors to oversee artificial intelligence-related risks at dozens of companies at Warren Buffett’s conglomerate.
Tulipshare, a London-based activist investment group, said on Tuesday it had tabled a shareholder resolution for Berkshire’s annual meeting on May 3 to establish a board.
It said the inappropriate use of AI could result in data leaks, privacy breaches, business disruptions and human rights violations, and that Berkshire’s influence in many industries gives Buffett’s company a unique opportunity to be a leader in managing artificial intelligence.
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 artificial intelligence but did not deny its importance, saying it had “huge potential for good and huge 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 operations, citing decentralization that allows companies to operate largely without interference from the top.
A proposal last year to have independent directors oversee safety at Berkshire’s BNSF railroad drew support from just 3.6% of shareholders.
Berkshire also owns Geico Auto Insurance, Berkshire Hathaway Energy, Brooks Running Shoes, See’s Candies and various industrial, chemical and other retail companies.
The Omaha, Nebraska-based company also invests in stocks such as Apple (NASDAQ: ) and Amazon.com (NASDAQ: ), which Tulipshare says it also owns.
Buffett (94) has led Berkshire since 1965.
