Charlie Munger is Skeptical of AI: ‘Old-Fashioned Intelligence Works Pretty Well’

Charlie Munger, the Vice Chairman of Berkshire Hathaway, has expressed doubts about the advancements of AI and machine learning. During the Berkshire Hathaway annual meeting, Munger stated that “old-fashioned intelligence” works better than AI for certain tasks, despite the hype around it.

Munger’s Views on AI

Munger expressed his skepticism towards AI, saying “I think I’ve been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I’ve underestimated them. And never a year passes but I get some surprise that pushes my limit a little farther.” According to Munger, AI could be one of those things that pushes the limit of his understanding, especially since it’s a very complex field that is constantly evolving.

Munger also cited the importance of “old-fashioned intelligence,” which he believes works better than AI when it comes to certain tasks. While AI can perform certain functions at an incredibly fast pace, it lacks the intuition and experience that comes with “old-fashioned” human intelligence. For example, Munger noted that AI still struggles with language tasks like understanding sarcasm or humor, which comes naturally to humans.

Munger’s Take on Chatbots and GPT-3

Munger’s comments on AI come at a time when chatbots and GPT-3 systems are being touted as the future of communication. However, Munger doesn’t seem to be too optimistic about their future. “I don’t know why people are so excited about chatbots,” Munger says. “They’re just another way of asking questions in a sequence, and then the damn thing gets confused after a while.” Munger also commented on GPT-3, the highly-advanced AI language model developed by OpenAI, saying “I don’t think people understand how hard it is to do what OpenAI is doing.”

Buffett’s Take on AI

Warren Buffett, the Chairman and CEO of Berkshire Hathaway, has also expressed doubt about the capabilities of AI. He has been quoted as saying “I see a lot less of them than you might think I would, but we see the manifestations of what they do. They can make money by the billions doing very samey things.” According to Buffett, while AI can be incredibly lucrative in certain industries like finance, it’s not necessarily a game-changer in all fields.

Conclusion

Munger and Buffett’s doubts about AI highlight the limitations of technology in certain fields. While AI has undoubtedly revolutionized certain industries in recent years, it still has its limitations. Munger’s emphasis on “old-fashioned” human intelligence highlights the importance of intuition and experience in certain fields, and suggests that AI may not necessarily be a replacement for all human-driven processes.