TL;DR:
- The SEC has denied Apple and Disney’s requests to exclude discussions on artificial intelligence (AI) at their upcoming annual shareholders meetings.
- The SEC asserts that AI is a topic of significance that goes beyond ordinary business matters.
- AFL-CIO, a prominent labor union federation, requested detailed reports from both companies about their use of AI and the ethical guidelines surrounding it.
- The AFL-CIO emphasized the need for transparency, consent, and compensation in the use of copyrighted works and professional performers’ likenesses in AI systems.
- Both Apple and Disney argued that these proposals should be considered ordinary business operations, but the SEC disagreed.
- Historically, the SEC has granted around half of the requests from corporations seeking to skip certain shareholder proposals.
- The date for Apple’s 2024 shareholders meeting has not been announced yet, but it typically occurs in March.
Main AI News:
In a recent development, the Securities and Exchange Commission (SEC) has dismissed the requests made by technology giants Apple and Disney to exclude discussions surrounding artificial intelligence (AI) at their forthcoming annual shareholders meetings. The SEC’s decision underscores the significance of AI in today’s business landscape, stating that the topic “transcends ordinary business matters.”
As part of the customary preparations leading up to annual shareholders meetings, companies like Apple, Disney, and other major corporations receive a series of proposals outlining the agenda for these gatherings. In response, Apple typically seeks the SEC’s permission to bypass any topics it deems undesirable. Past instances have involved issues like employee non-disclosure agreements, where the SEC mandated Apple’s compliance with discussing these matters.
According to Reuters, the AFL-CIO, a prominent American labor union federation, submitted a request to both Disney and Apple to provide a comprehensive report on AI. Specifically, the federation’s pension fund staff requested insights into “the use of AI in [Apple’s] business operations and the disclosure of any ethical guidelines guiding the company’s utilization of AI technology.“
Furthermore, the AFL-CIO 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” for Apple. Brandon Rees, deputy director of the AFL-CIO’s office of investment, conveyed his concerns by stating that Apple and Disney have yet to address these pressing ethical issues adequately.
Both Apple and Disney separately approached the SEC, arguing that these proposals should be exempt from the shareholders’ voting agenda as they pertain to “ordinary business operations.”
However, the SEC has now issued a response, rejecting the appeals from both corporations. The agency’s statement on the matter reads, “In our view, the Proposal transcends ordinary business matters and does not seek to micromanage the Company.“
It’s customary for corporations to seek permission from the SEC to bypass certain shareholder proposals, with the agency historically approving approximately half of such requests. While the exact date of Apple’s 2024 shareholders meeting remains undisclosed, it typically occurs in March.
Conclusion:
The SEC’s decision to reject Apple and Disney’s attempts to exclude AI discussions at their shareholders meetings reflects the growing importance of AI in the business landscape. This signifies that companies are increasingly expected to address ethical and transparency concerns surrounding AI technologies, and shareholders are eager for more information in this regard. This could push corporations to adopt more robust AI ethical guidelines and practices, which could impact the AI market by driving demand for responsible AI solutions and services.
