Apple and Disney have been denied requests by the US Securities and Exchange Commission to exclude shareholder votes on their use of artificial intelligence (AI). The iPhone maker and the entertainment giant had sought to omit calls for reports on their AI usage from their upcoming annual meetings. However, the commission rejected their requests on the grounds that the proposals were not related to ‘ordinary business operations’. Both Apple and Disney have increasingly embraced AI technology for its promised efficiencies. However, its rise has also sparked concerns about the potential replacement of creative and professional workers, as well as unfair use of their work.

Labor group AFL-CIO, the largest American labor union federation, filed similar shareholder proposals at both Apple and Disney, as well as four other technology companies. The group seeks reports on each company’s use of AI in its business operations, as well as the disclosure of any ethical guidelines they have adopted regarding the usage of AI technology.

In its supporting statement at Apple, the AFL-CIO emphasized the need for transparency, consent, and compensation to creators and rights holders when training AI systems using copyrighted works or the voices, likenesses, and performances of professional performers. The AFL-CIO’s deputy director of the office of investment, Brandon Rees, said that the SEC’s decisions could potentially lead to agreements between the labor group and Apple and Disney that align with the AI disclosures of other major companies, such as Microsoft.

The decisions by the SEC indicate that the shareholder proposals transcend ordinary business matters and do not seek to micromanage the companies. Apple and Disney have yet to respond to requests for comment on the SEC’s rulings.

Source: Times of India