US Regulator Turns Down Apple and Disney's Request to Omit AI-Related Shareholder Votes

Tech giants Apple and Disney have been directed by the U.S. Securities and Exchange Commission (SEC) to allow shareholder votes on artificial intelligence (AI) concerns. This decision came after the companies sought to bypass the voting process regarding the use of AI in their operations. These requests were part of proposals initiated by a labor group. The SEC issued notices on January 3rd, clarifying that the shareholder proposals could not be excluded from the companies' annual meetings.

Artificial Intelligence has been widely adopted by corporations for its potential to improve efficiency and operations. However, there are growing concerns about the ethical implications of AI, including its potential to displace jobs and the use of creative content without proper consent. These issues have surfaced in disputes within Hollywood's labor community and were also highlighted in a recent lawsuit involving The New York Times.

The shareholder proposals concerning the ethical use of AI were brought forward by a pension trust affiliated with the AFL-CIO, the largest collective federation of labor unions in the United States. The AFL-CIO is also involved in pushing forward similar AI measures at other major technology companies.

For Apple, the labor group has called for a detailed report on the ethical use of AI within the company, as well as the ethical guidelines that it adheres to in the deployment of AI technology. The request for Disney was on similar lines, focusing on the board's role in supervising AI usage. The AFL-CIO emphasized the importance of transparency, consent, and compensation for creators, particularly when AI systems use copyrighted works or the likenesses of creative professionals.

The Deputy Director of the AFL-CIO's Office of Investment, Brandon Rees, indicated that the SEC's decisions might lead to agreements with Apple and Disney. He stated that these agreements would potentially hold the companies to the same standard of AI disclosure as other firms, like Microsoft. Rees also suggested that Apple and Disney had not sufficiently addressed these pressing ethical concerns related to AI.

When approached for a comment, neither Apple nor Disney provided an immediate response. They had previously argued that the shareholder proposals could be excluded from voting because they dealt with 'ordinary business operations,' which generally include decisions about technology choices. However, the SEC challenged this view, stating that the proposal 'transcends ordinary business matters and does not seek to micromanage the Company.'

regulation, AI, shareholders