Greg Appel told Berkshire Hathaway shareholders on Saturday that the conglomerate will only embrace artificial intelligence (AI) when it adds clear value, dismissing industry-wide hype at his first annual meeting as Warren Buffett’s designated successor.
His remarks, delivered in Omaha on May 2, outlined a cautious strategy to deploy across Berkshire’s insurance, railroad, energy and manufacturing units. Buffett, who recently retired as CEO, did not comment on artificial intelligence during the hearing.
Narrow AI, not hype
Appel told shareholders that the AI must improve efficiency, safety or decision-making before Berkshire deploys it. The vice chairman pointed to railroad subsidiary BNSF, where targeted AI tools are improving operations, and to insurance, where the company is using technology to report fraud and deepfake threats.
Organizers opened the meeting with an AI-generated video of Buffett, which Appel described as a serious risk Berkshire runs every day.
“It has to be additive to our business. We’re not going to do AI for the sake of AI.” He said.
This framework extends to Buffett Long-standing doubts about unproven technical narrativesand contrasts with peers who are cutting jobs or rebranding around AI capabilities.
Dedicated power unit for data center boom
The clearest growth angle came from Berkshire Hathaway Energy. Data centers already account for roughly 8% of peak load in key service areas like Iowa, close to the industry standard maximum of 5% to 10%, Appel said.
He expects the unit will be able to expand that footprint by 50% over the next five years, citing demand from Superrunners are racing to build AI infrastructure.
Appel insisted that those operators “should bear the full cost,” protecting residential and commercial taxpayers from absorbing the new burden.
This position provides Berkshire with a tangible tailwind for AI without forcing it to chase software ratings, a position consistent with Abel’s succession in the bloc.
Whether this discipline holds Spending on AI infrastructure is accelerating Across the utilities sector it will mark Appel’s first full year at the helm.
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