Regulator rejects Apple, Disney’s request to skip votes on AI

The top US securities regulator, the US Securities and Exchange Commission, has ruled that Apple and Disney cannot exclude shareholder votes about using AI put forward by a labor group. Both companies had sought to exclude calls for reports on their use of AI from their upcoming annual meetings. Similar shareholder requests had been sent by the labor union AFL-CIO to four additional technology companies. Apple was asked by the AFL-CIO to provide information regarding how AI is used in its commercial operations as well as any ethical standards it has imposed on the field. A report on Disney’s board’s oversight of AI usage was also requested by the corporation. 

The AFL-CIO argued that AI systems should not be trained on copyrighted works or professional artists’ voices, likenesses, and performances unless creators and rights holders are given transparency, consent, and pay. Apple and Disney’s arguments that the proposals were connected to ordinary business activities and thus might be excluded were rejected by the SEC.

According to the government, the ideas went beyond regular business problems and were not intended to micromanage the enterprises. In light of the SEC’s rulings, the AFL-CIO anticipates that deals with Apple and Disney will bring their AI disclosures into line with those of other corporations, such as Microsoft. Apple and Disney did not immediately reply to calls for comment.

Why does it matter?

Within a broader context, this ruling signifies a change toward adopting responsible AI practices and increasing corporate liability. It promotes an atmosphere where companies must reveal and adhere to ethical principles when implementing advanced technologies. This ruling may stimulate conversations within the industry and contribute to the ongoing discourse concerning the ethical application of AI in diverse business operations.