SEC Rejects Apple’s Request to Exclude AI Discussions at Shareholder Meetings
In a recent decision, the US Securities and Exchange Commission (SEC) has rejected Apple’s request to exclude discussions on artificial intelligence (AI) at their upcoming annual shareholder meetings. The request was dismissed after the pension trust of the AFL-CIO labor union filed proposals to require Apple to provide a report on its use of AI and disclose any ethical guidelines related to the technology.
The proposal from AFL-CIO stated that Apple should disclose its use of AI in business operations and share any ethical guidelines concerning the company’s implementation of AI technology. The report should be made publicly available on Apple’s website for its shareholders. The labor union also emphasized that AI systems should not be trained on copyrighted works or the voices, likenesses, and performances of professional performers without transparency, consent, and compensation to creators and rights holders.
One of the concerns expressed is the lack of clarity regarding the intellectual property (IP) source code or open language used by generative AI chatbots to gather information for developing large language models. This has resulted in lawsuits against companies like OpenAI. The proposal aims to address these concerns and promote transparency in Apple’s AI practices.
Apple argued that the proposal should be excluded from shareholder ballots as it pertains to ordinary business operations and would lead to micromanagement. However, the SEC disagreed in their notice to Apple, stating that the proposal goes beyond ordinary business matters and does not seek to micromanage the company.
Interestingly, Disney also faced a similar rejection of their request and will have to undergo AI review as well. The SEC’s decision signifies a growing emphasis on ensuring transparency and ethical guidelines in AI utilization among major corporations.
It remains to be seen how this decision will impact Apple’s practices regarding AI and whether it will prompt other companies to adopt similar measures. The role of AI in business operations and its ethical implications continue to be important topics for discussion among shareholders and stakeholders.
Overall, the SEC’s rejection of Apple’s request and the subsequent requirement for AI reports demonstrate the need for increased transparency and accountability in the use of AI technology. As the prominence of AI grows, it is essential for companies to address concerns about intellectual property, transparency, and the ethical considerations surrounding AI.
