The US Securities and Exchange Commission (SEC) has made a significant ruling regarding the use of artificial intelligence (AI) by corporations. Both Apple and Disney have been instructed to include shareholder votes on their AI usage in their upcoming annual meetings. The SEC rejected the companies’ requests to exclude calls for reports on AI usage, emphasizing the importance of transparency and accountability in this rapidly advancing field.
The use of AI technology has become increasingly popular among businesses, promising efficiency and improved performance. However, concerns have been raised regarding the potential displacement of creative and professional workers, as well as the fair utilization of their work. These concerns have sparked labor disputes in Hollywood and even led to a lawsuit by The New York Times.
The AFL-CIO, the largest labor union federation in the United States, filed shareholder proposals at Apple and Disney, along with four other technology companies, requesting reports on their AI usage. The AFL-CIO’s pension trust specifically requested a report on Apple’s use of AI in its operations, along with disclosure of any ethical guidelines adopted by the company. Similarly, the AFL-CIO asked Disney for a report on its board’s oversight of AI usage.
In its supporting statement, the AFL-CIO emphasized that AI systems should not be trained using copyrighted works or the voices, likenesses, and performances of professional performers without transparency, consent, and compensation to creators and rights holders.
Brandon Rees, deputy director of the AFL-CIO’s office of investment, believes that the SEC’s decisions could lead to agreements with Apple and Disney, aligning them with other companies like Microsoft in terms of AI disclosures. Rees expressed concerns that Apple and Disney have yet to address the ethical issues surrounding AI.
Both Apple and Disney have yet to provide comments on the SEC’s ruling.
The companies had argued that the proposals should be excluded from the ballot as they pertain to ordinary business operations, such as the choice of technologies. However, the SEC disagreed, stating that the proposals go beyond ordinary matters and do not aim to micromanage the companies.
This development comes at a time when AI has become an integral part of over-the-top (OTT) platforms, which curate content and ads for users based on their preferences. With the use of AI algorithms, these platforms can recommend similar content and tailor ads according to viewers’ interests.
Overall, the SEC’s ruling sets a precedent for greater accountability in AI usage. By including shareholder votes and providing transparent reports, companies like Apple and Disney can ensure responsible and ethical integration of AI into their operations.
