As the corporate world races to embed artificial intelligence into everything from underwriting to logistics, Berkshire Hathaway is opting for caution. The venerable conglomerate, known for its measured investment style, has made no sweeping commitment to AI despite acknowledging its potential to transform core industries such as insurance.
Ajit Jain, Berkshire’s long-serving insurance chief, conceded this week that AI could be a “real game changer” in assessing and pricing risk, particularly in how insurers evaluate claims. Yet Jain was equally firm that Berkshire’s instinct is to remain on the sidelines until the opportunity becomes unmistakably clear.
“We are not very good in terms of being the fastest or the first mover,” Jain said, adding that Berkshire prefers to “wait and see until the opportunity crystallises.” His remarks suggest that the conglomerate, which is currently navigating profit pressure and a major leadership transition, is unlikely to make large-scale AI bets any time soon.
Indeed, the firm’s sprawling insurance operations - which include GEICO and a range of reinsurance businesses — have begun experimenting with AI at the margins. However, Jain characterized these efforts as “dabbling,” rather than any coordinated push to harness the technology across the group. Still, he assured shareholders that Berkshire would be “in a state of readiness” should a promising opportunity emerge.
That readiness may soon be tested. The firm is entering a new era, with 94-year-old Warren Buffett set to retire as chief executive by year-end. His long-time deputy, Greg Abel, will assume full control of both the insurance and non-insurance arms. While Abel has proven adept at managing Berkshire’s operational empire, the question of how aggressively he might pursue technological transformation remains open.
Berkshire’s caution on AI contrasts with the current exuberance seen elsewhere in the market, where firms are rapidly deploying machine learning systems in everything from investment management to customer service. Jain, however, warned against blindly chasing “the next new fashionable thing,” pointing out that many companies have sunk vast sums into technology trends that delivered little in return.
The company’s conservative posture reflects broader themes in its latest quarterly results. Berkshire posted just $4.6 billion in profit for the first quarter of 2025 - down sharply from $12.7 billion a year ago - as insurance losses and investment declines weighed on earnings. The firm’s insurance underwriting business, in particular, was hit hard by losses from Southern California wildfires.
Even so, Berkshire’s balance sheet remains formidable. It ended the quarter with $347.7 billion in cash, having sold more stocks than it bought and pared back its massive Apple stake. That war chest gives it ample capacity to invest in AI - or anything else - should it choose to.
Buffett, who continues to chair the board, indicated that Berkshire nearly deployed $10 billion in a recent deal that ultimately fell through. But absent compelling valuations, he and Abel have preferred to hold fire.
That same restraint defines Berkshire’s approach to artificial intelligence. While others embrace the latest innovations with urgency, Berkshire — true to form — is keeping its powder dry.
If the AI revolution proves as seismic as its proponents claim, Berkshire intends to be ready. Just not first.
