What are the benefits of AI for Berkshire?

I own banks and one of their significant costs are regulatory compliance costs. This requires hiring lot of personnel and this shows up in efficiency numbers. My long-term thesis for BAC is they can reduce branches and staff, same goes for Citi, they can streamline compliance and reduce cost, same goes for WFC.

Now, all of them can use AI to achieve some cost reduction. As an extension, insurance also requires lots of compliance. How much Berkshire can benefit from using AI in its insurance business? Is it a long-term PE multiple driver?

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Vicki Hollub has said that AI is helping them (Oxy) in Oil and gas production and field operations.

Their use of AI is one reason I wrote a lot of 2026 leaps when stock was around $55 recently. The other two reasons are “her comments about Oil supply shortage after mid 2025” and “Oxy’s Direct Air Capture” initiative.

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When you read about AI, you realize it is everywhere and has been for quite a while. Voice recognition software. Facial recognition. The ability to read cursive writing. These are applications we run into all the time. Alexa anyone?

We have big expectations from the next generation of AI. Will it be earth shattering? Or merely another increment. Maybe over hyped. We shall see.

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ML is earth shattering but you don’t know it. It has crept into your every day life.

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