Warren Buffett’s Berkshire Hathaway has invested in four companies using artificial intelligence to improve their businesses: Domino’s Pizza, Amazon, Coca-Cola, and Apple. Domino’s Pizza is the world’s largest pizza chain.
It uses AI to predict customer orders before they are completed on its website. This helps the company deliver pizzas faster. Domino’s also plans to use AI for inventory management and staff scheduling.
Amazon is the world’s largest e-commerce company. It uses AI in many ways, such as recommending products to customers and identifying defective products before they are shipped. Amazon also provides infrastructure and software for AI development through its Amazon Web Services division.
Coca-Cola is the world’s largest beverage company. It invests heavily in AI, including a $1.1 billion commitment to Microsoft’s Azure cloud platform over five years.
Buffett bets on AI innovation
Coca-Cola uses AI to improve supply chains, productivity, and marketing. Apple is Berkshire’s largest holding. The company has been preparing for AI advancements by designing new chips and components for its devices.
Apple launched Apple Intelligence last year, which includes AI features for summarizing messages, generating replies, prioritizing notifications, and enhancing Siri. These four companies comprise 32.1% of Berkshire Hathaway’s $295 billion portfolio. They demonstrate Buffett’s recognition of AI’s transformative potential across various industries.
His investment in these AI-focused companies further evidences Buffett’s exceptional stock-picking abilities. Despite his cautious approach to trends, Buffett sees the potential for AI to enhance businesses and drive growth. As these companies continue to invest in and implement AI technologies, they will likely see improvements in efficiency, profitability, and customer satisfaction.
This, in turn, could lead to increased value for Berkshire Hathaway’s investments. Buffett’s substantial interest in AI through these four holdings underscores the growing importance of this technology across industries. As AI continues to advance and become more widely adopted, it will likely play an increasingly significant role in shaping the future of business.
