Transcription
Um, this question comes from Sam England in San Francisco and and it's for Warren and A. As AI systems become more capable and harder to interpret, how do you see that affecting the insurance industry's ability to assess price and transfer risk? Are there parallels to past disruptions Bergkshire has navigated in underwriting or capital allocation?
>> Okay, Becky. and G's got about 100 points of IQ on me and he's just going to be here this morning so I'm going to let him answer the question first.
>> Well, uh there is no question in my mind that AI is going to be a real gamechanger and it's going to change the way we assess risk, we price risk, we sell the risk and then the way we end up paying claims. Having said that, I certainly also feel that people end up spending enormous amount of money trying to chase the next new new fashionable thing. We uh are not very good in terms of being the being the fastest or the first mover. Our approach is more to wait and see until the opportunity crystallizes and we have a better point of view in terms of risk of failure, upside downside. So right now the individual insurance operations do dabble in AI and try and figure out what is the best way to exploit it but we have not yet made a conscious big-time effort in terms of pouring a lot of money into this opportunity and my guess is we will be in a state of readiness and should that opportunity pop up we'll be in a state where we'll jump in promptly.
Yeah, I would just add I wouldn't trade I wouldn't trade everything that's developed in AI in the next 10 years for for a G. So if you gave me a choice that uh having a hundred billion dollars available to participate in the insurance property casualty insurance business for the next 10 years and a choice of getting the top AI product out of whoever's whoever's developing it or having a Jeep making the decision, I would I would take a Jeep anytime.
[Applause] And I'm not kidding about that.