By Jonathan Stempel
(Reuters) – A Berkshire Hathaway (BRK-B) shareholder wants a committee of independent directors to oversee the risks associated with artificial intelligence at the dozens of companies in Warren Buffett’s conglomerate.
Tulipshare, an activist investor group based in London, said Tuesday it has filed a shareholder resolution for Berkshire’s annual meeting on May 3 to establish the committee.
The report states that improper use of AI could result in data breaches, privacy breaches, business disruptions and human rights abuses, and that Berkshire’s influence in many sectors gives Buffett’s company a unique opportunity to make a difference. to be a leader in AI management.
Berkshire did not immediately respond to a request for comment. Tulipshare did not immediately respond to requests for additional comment.
At Berkshire’s annual meeting last May, Buffett told shareholders he knew nothing about AI, but he didn’t deny its importance, saying it has “tremendous potential for good and enormous potential for harm.”
Buffett recently owned 14.4% of Berkshire’s stock, but controlled 30.2% of Berkshire’s voting rights, making it difficult to pass shareholder proposals without his support.
He and other directors routinely resist issuing reports or creating independent board committees to review Berkshire’s business operations, citing decentralization that allows the companies to operate largely without interference from the top.
A proposal last year to have independent directors oversee the safety of the BNSF railroad in Berkshire received just 3.6% support from shareholders.
Berkshire also owns Geico auto insurance, Berkshire Hathaway Energy, Brooks running shoes, See’s Candies and a variety of industrial, chemical and other retail companies.
The Omaha, Nebraska-based company also invests in stocks like Apple and Amazon.com, which Tulipshare says it also owns.
Buffett, 94, has led Berkshire since 1965.
(Reporting by Jonathan Stempel in New York; Editing by Rod Nickel)