If you’re wondering about the state of the economy and if the banking crisis will continue, you’re not alone. Many people are still trying to understand where our financial system is headed and what it will mean for their investments. Thankfully, one of the most trusted experts in the sector has addressed these topics. Warren Buffett of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) recently sat down with CNBC’s Squawk Box on April 12 for a conversation about some of the most pressing economic questions.
In an attempt to make it easier to break down Buffett’s detailed answers, we assigned Microsoft’s (NASDAQ:MSFT) Bingbot to watch the interview and provide a rundown of the most important details. The bot completed the assignment but provided a mixed list of sources. This included a transcript not just of the April 12 interview but of a different interview Buffett did with CBS in 2014. However, it also listed an article published by Newsweek on the correct interview discussing Buffett’s predictions that bank failures will continue. Yet, its first listed source did include a transcript of the correct interview.
How accurate was the artificial intelligence (AI) bot’s takeaways from the Buffett interview? Let’s take a closer look and examine its breakdown.
AI Watches Warren Buffett on “Squawk Box”
Bingbot ran down the Warren Buffett interview from start to finish, listing its takeaways in that order and without any sort of ranking. It began by noting that Buffet had been “confounded by the opportunity to buy stakes in five Japanese trading houses.” That’s technically correct if we go by the statistical definition of “confounded,” referring to the statistical definition of “a variable that influences both the dependent variable and independent variable.” Buffett’s statements indicate that he sees them as being well-managed businesses, as Bingbot added.
The bot also flagged Buffett’s statements on the banking crisis. It correctly noted that while Buffett recently offloaded many bank stocks, he still holds Bank of America (NYSE:BAC). An important detail it did not include is that Buffett personally praised CEO Brian Moynihan, noting he held BAC while setting off bank stocks he’d held for 25-30 years. Bingbot also correctly pointed out that Buffett isn’t concerned about inflation. However, there is no mention of him specifically stating that extended stimulus will create “distortions and imbalances” in the economy, as the bot claims.
It correctly noted that Buffett praised Jerome Powell, saying he thinks the chairman of the Federal Reserve has been “terrific” and that he handled the Covid-19 pandemic well. It also highlighted what it describes as a “top quote” from Buffett during the interview, in which he stated: “We don’t profit from statistics and guessing. We profit from being rational when other people are irrational.”
Buffett on Bitcoin and ChatGPT
The bot also noted Buffett’s response to a question from Aaron Ross Sorkin regarding Bitcoin (BTC-USD). The billionaire is an outspoken critic of crypto. That said, despite what the bot claims, he never explicitly stated in the interview that he was “not a fan” of Bitcoin. Nonetheless, it correctly noted that Buffett described the crypto rise as an “explosion of gambling,” highlighting its lack of intrinsic value.
Buffett also responded to a question about ChatGPT and the potential of AI to transform markets. The bot highlighted this part of the interview, correctly summarizing most of Buffett’s take on the technology in which he stated, “I think this is extraordinary, but I don’t know whether it’s beneficial.” However, the bot doesn’t include Buffett admitting that he doesn’t understand the technology and that its possibilities scare him.
For all its technically correct takes on the interview, Bingbot clearly pulled one thing from the 2014 interview. It stated that Buffett “supported the Keystone pipeline project, which he said would benefit the environment and the economy, even though it would hurt his railroad business, BNSF, which transports oil by rail.” There is no mention of the Keystone Pipeline in the recent interview. Although, he addressed it while speaking with Squawk Box in 2014.
The Bottom Line
While it’s clear that Bingbot can read and take notes on an in-depth interview with a speaker like Warren Buffett, it still isn’t perfect. The technology seems to have trouble differentiating between interviews, particularly if both include similar topics.
While this chatbot could pick out key points and provide a concise list of the primary takeaways, investors may be wise to fact-check the answers produced by a generative AI tool, at least for now.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
