Has Charlie Munger's previously skeptical view on Artificial Intelligence changed in recent years?

Changes in Charlie Munger's Views on AI

Hey there! I'm a long-time follower of Munger and Buffett's investment philosophy, and I love reading their shareholder letters and meeting transcripts. Your question is interesting—Munger was indeed quite skeptical about artificial intelligence (AI) in his earlier years, but his perspective has shifted somewhat recently. Let me break it down in plain terms.

Early Skepticism

Munger has always been pragmatic, favoring "easy-to-understand" businesses. Back in the day (say, the 1990s to 2010s), he held a negative view of AI, largely dismissing it as overhyped. For instance, he once compared AI to a "perpetual motion machine"—sounding impressive but hard to implement, with high risks and uncertain returns. Like Buffett, Munger preferred traditional industries like Coca-Cola or insurers, which generate stable cash flows. He saw AI as too sci-fi and outside his "circle of competence" (i.e., investing only in what you understand). So, back then, Munger avoided AI investments, and Berkshire Hathaway largely steered clear of tech stocks (except for Apple later on).

Recent Shifts?

Yes, Munger’s stance softened in recent years (around 2020 onward). He didn’t become an AI evangelist, but he acknowledged its growing potential. A few examples:

• 2023 Daily Journal Meeting: Munger stated that AI "could change everything," though he warned it’s like an atomic bomb—capable of both good and harm. For instance, AI can help doctors diagnose diseases but could also be weaponized for fake news or cyberattacks. He joked that while AI won’t replace human wisdom, it’ll make the world more complex.
• Berkshire Hathaway Annual Meeting: At the 2023 event, Munger and Buffett discussed AI. Munger emphasized that AI wouldn’t upend their investment philosophy (still rooted in value investing and long-term holds), but he conceded its tangible impact in fields like autonomous driving and data analytics. He even quipped that if he were younger, he might explore AI opportunities himself.

That said, Munger remained cautious until the end (he passed in late 2023). He felt the AI hype might be overblown and urged investors to avoid getting swept up in it. Overall, his shift wasn’t a 180-degree turn—more like moving from "dismissive" to "acknowledging potential, with a dose of caution."

Why the Change?

Munger, sharp as ever and having lived to 99, witnessed countless tech waves (from the internet to blockchain). He adjusted his views based on new evidence. With breakthroughs like ChatGPT and real-world AI applications surging recently, he likely felt it couldn’t be ignored. His core investment philosophy centers on "lifelong learning," so this evolution fits his style perfectly.

If you’re studying Munger’s approach, I’d recommend his book Poor Charlie’s Almanack—it’s packed with wisdom on avoiding foolish decisions. On AI, he reminds us: No matter how advanced tech gets, never overlook human risks. Feel free to ask more questions!