When discussing Warren Buffett, people usually think of his investment strategy centered on value, strong company fundamentals, and a long-term outlook.

The Oracle of Omaha is famously cautious about jumping into trends he doesn’t fully understand, especially the tech sector, which is often seen as too volatile. However, this perception isn’t entirely accurate.

In reality, Berkshire Hathaway’s portfolio contains significant investments in companies that fundamentally rely on Artificial Intelligence (AI) to drive growth and efficiency.

According to an analysis published on the trading education site New Trader U, here are five stocks that illustrate how Warren Buffett, either directly or indirectly, has invested in the future of AI.

1. Apple (AAPL)

Nothing showcases Buffett’s portfolio evolution more than his massive investment in Apple, which is currently Berkshire Hathaway’s largest holding.

Although Apple is primarily a consumer electronics company, the backbone of its products—such as the iPhone, iPad, and Mac—is increasingly powered by AI.

Apple’s use of AI includes:

• Virtual Assistant: Siri, Apple’s voice assistant, continues to be enhanced with AI to better understand commands and provide more accurate responses.

• Computational Photography: AI algorithms enable iPhone cameras to produce high-quality photos by automatically adjusting lighting, focus, and details, even in challenging environments.

• Predictive Text: AI predicts the words users are likely to type next, making writing faster and smoother.

Buffett’s investment in Apple highlights his recognition of not only brand strength and customer loyalty, but also Apple’s ability to integrate advanced technologies into its products.

2. Amazon (AMZN)

While not among Berkshire’s largest positions, Amazon remains on Buffett’s investment radar.

Beyond being an e-commerce giant, Amazon plays a crucial role in AI through Amazon Web Services (AWS).

Amazon’s AI applications include:

• AWS: Cloud services that serve as the backbone for many tech companies, including AI startups needing massive computing power.

• Alexa: The AI-powered voice assistant that continuously learns from user interactions to deliver more personalized services.

• Recommendation Algorithms: AI-driven systems analyze the shopping habits of billions of customers to suggest highly personalized product recommendations, boosting sales.

3. Visa (V)

Buffett also holds a strong position in Visa, one of the largest payment processors in the world.

While Visa may not seem like a pure AI company, AI lies at the heart of its operations.

Processing billions of transactions daily, Visa uses AI to secure customer data and detect fraud in real-time. The system identifies unusual patterns, such as large purchases in unfamiliar locations, and blocks suspicious activity to protect both consumers and banks.

4. Mastercard (MA)

Similar to Visa, Mastercard is another financial services company deeply reliant on AI for its global operations.

AI technology underpins Mastercard’s security framework. Its algorithms constantly monitor transactions worldwide, spotting anomalies and preventing fraudulent activities.

Buffett’s investment reflects his trust in companies with strong “economic moats,” in this case reinforced by AI-driven security and efficiency.

5. American Express (AXP)

Like Visa and Mastercard, American Express heavily incorporates AI into its operations. Its applications include:

• Fraud Prevention: AI systems analyze every transaction in real-time to detect and block fraud.

• Customer Service Automation: AI-powered chatbots handle routine inquiries, freeing human agents to focus on complex issues.

• Personalized Rewards Recommendations: AI evaluates spending habits and transaction history to suggest tailored rewards programs and offers for cardholders.