Berkshire Hathaway, led by Warren Buffett, has made investments in four companies leveraging artificial intelligence to enhance their operations: Domino’s Pizza, Amazon, Coca-Cola, and Apple. Among them, Domino’s Pizza stands out as the largest pizza retailer globally.
The company employs AI to forecast customer orders prior to their completion on the website, facilitating quicker pizza deliveries. Furthermore, Domino’s is set to implement AI for managing inventory and arranging staff schedules.
As the premier e-commerce platform, Amazon integrates AI in various capacities, including product recommendations for consumers and the early detection of faulty items before delivery. Amazon also supports AI development by offering infrastructure and software solutions via its Amazon Web Services branch.
Coca-Cola ranks as the leading beverage corporation worldwide, investing heavily in AI initiatives, including a substantial commitment of $1.1 billion to Microsoft’s Azure cloud services over the next five years.
Buffett’s Faith in AI Progress
Coca-Cola utilizes AI to enhance its supply chain efficiency, boost productivity, and refine marketing strategies. Apple, which holds the largest share of Berkshire’s portfolio, is preparing for AI innovations by designing advanced chips and components for its products.
Last year, Apple introduced Apple Intelligence, featuring AI capabilities for summarizing messages, creating replies, prioritizing alerts, and improving Siri’s functionality. Together, these four companies account for 32.1% of Berkshire Hathaway’s $295 billion portfolio, illustrating Buffett’s acknowledgment of AI’s transformative abilities across different sectors.
Buffett’s backing of these AI-centric businesses further highlights his remarkable skill in stock selection. While he typically adopts a cautious stance towards trends, he acknowledges AI’s capacity to elevate enterprises and foster growth. As these organizations persist in investing in and implementing AI tools, enhancements in efficiency, profitability, and customer engagement are expected.
This progress may subsequently increase the value of Berkshire Hathaway’s investments. Buffett’s significant focus on AI through these four companies emphasizes the rising significance of this technology in various sectors. As AI continues to evolve and gain wider acceptance, it is likely to become a key factor in shaping the future of business.
