The array of festivals and conferences in Austin, collectively known as South by Southwest (SXSW), serve as a cultural barometer, shedding light on the latest trends in music, film, and consumer tech. This year, it indicated an unsettled season. It came as no surprise that a video showcasing the immense potential of artificial intelligence (AI) technology was shown during film screenings at SXSW. However, the organizers did not anticipate the response. "At first, a few individuals in the audience started booing, " wrote cultural critic Ted Gioia. "But as time went on, the booing grew louder and the number of dissenting voices increased. The crowd became increasingly hostile with every mention of the benefits of AI by the experts on screen. " The crowd's disapproval was evident when the experts labeled AI as a "culture, " advocated for accepting inevitable "disruption, " and emphasized that AI makes humans more human. Reflecting on the situation, the organizers of SXSW may have chosen to avoid presenting a pro-AI video before two film premieres, knowing that the audience would include those who participated in last year's writer's and actor's strike, where AI played a significant role. However, disgruntled hipsters attending SXSW were not the only ones expressing their dissent – even the renowned Sage of Omaha added his voice. While the goody bags at SXSW may be cooler, the truly substantial capital gravitates towards Berkshire Hathaway's annual meeting in Nebraska, where Warren Buffett and Charlie Munger, who passed away in December, built their hedge fund empire over a lifetime. Last year, Buffett expressed concerns about AI, likening it to nuclear weapons as a "genie let out of the bottle" that could cause great harm if misused. This year, the influential investor amplified his worries, cautioning that AI-powered online scams will become the "growth industry of all time. " These signals indicate a turning point in the rapid advancement of AI. The economy continues to surge forward on the potential of AI, and we have only begun to witness the transformation of the first consumer products by this revolutionary technology.

Despite his reservations about AI, Buffett won't let it hinder his pursuit of financial gains. However, the optimistic rhetoric has waned. There is an increasingly dawning realization of the profound and swift changes that AI will bring. Last week, Air Force Secretary Frank Kendall's demonstration of AI-controlled military technology, piloting an F-16 fighter jet, was both impressive and sobering. A year ago, such a feat would have been relegated to science fiction, but now Kendall asserts that not having AI in military operations poses a security risk. "At this point, we have to have it, " he stated. This sentiment captures the broader acceptance of AI among leaders across various fields. Perhaps what we are witnessing, following a year of awe-inspired reactions to AI, is the early stages of the emergence of authentic, AI-generated political issues. Numerous states have introduced legislation related to AI, with many focusing on establishing business guidelines or promoting AI development. The Biden administration has released a "Blueprint for an AI Bill of Rights, " addressing privacy concerns, algorithmic discrimination, and the right to communicate with a human when interacting with automated systems. The rumblings from Austin and Omaha indicate that these preparatory measures represent just the beginning. Inevitably, a technology that promises to reshape the economy fundamentally will also yield significant political consequences. We are still uncertain about the full extent of these implications. "I do think, as someone who doesn't understand a damn thing about it, it has enormous potential for good and enormous potential for harm – and I just don't know how that plays out, " Buffett stated during the weekend, acknowledging the uncertainty surrounding the impact of AI.