The U.S. Securities and Exchange Commission (SEC) has rejected requests from Apple and Disney to exclude shareholder votes addressing their use of artificial intelligence (AI) at upcoming annual meetings. The SEC’s decision follows notices dated January 3, asserting that calls for reports on AI usage cannot be excluded from shareholder discussions.
These shareholder proposals were initiated by a pension trust associated with the AFL-CIO, the largest labor union federation in the United States. The group filed similar requests at four other technology companies, aiming to shed light on the ethical considerations and guidelines governing AI implementation.
At Apple, the AFL-CIO requested a report on the company’s utilization of AI in business operations and demanded disclosure of any ethical guidelines related to AI technology. A parallel request was made to Disney, asking for a report on its board’s oversight role in AI usage.
The AFL-CIO’s supporting statement at Apple emphasized that AI systems should not be trained on copyrighted works or professional performers’ voices, likenesses, and performances without transparency, consent, and compensation to creators and rights holders.
Brandon Rees, deputy director of the AFL-CIO’s office of investment, stated that the SEC’s decisions could potentially lead to agreements aligning Apple and Disney with the AI disclosures of other companies like Microsoft. He highlighted that both Apple and Disney have yet to address ethical issues surrounding AI, unlike their counterparts.
Apple and Disney argued that the proposals should be excluded from ballots, citing them as pertaining to “ordinary business operations.” However, the SEC disagreed, stating that the proposals transcend ordinary matters and do not seek to micromanage the companies.
As the use of AI becomes increasingly prevalent in corporations, concerns about its impact on creative and professional workers have led to shareholder initiatives aiming for greater transparency and ethical considerations in AI implementation. The SEC’s rulings open the door for shareholders to actively engage with Apple and Disney on the ethical implications of their AI strategies. Apple and Disney have not yet responded to requests for comment.