Apple and Disney's AI Strategies Under Shareholder Scrutiny: What's Next?

Apple Inc AAPL and Walt Disney Co DIS will likely face shareholder votes on their use of artificial intelligence (AI) following a decision by the U.S. Securities and Exchange Commission (SEC). 

On January 3, the SEC denied requests from both companies to exclude AI-related proposals from their annual meetings. 

These proposals, filed by a pension trust of the AFL-CIO, the most prominent American labor union federation, call for reports on Apple and Disney's use of AI in their business operations and any ethical guidelines adopted for AI technology use, Reuters reports.

The concern arises from AI's potential to replace creative and professional workers or to use their work unfairly, as highlighted in recent Hollywood labor disputes and a lawsuit by the New York Times Co NYT. 

The AFL-CIO, which has also filed similar measures at four other technology companies, requested that Apple and Disney disclose their AI practices and board oversight roles. 

The AFL-CIO emphasized the importance of transparency, consent, and compensation for creators and rights holders while training AI systems on copyrighted works or professional performances.

Also Read: Microsoft Co-Founded AI Safety Forum Appoints First Director, Sets Up $10M AI Research Fund

Brandon Rees, deputy director of the AFL-CIO's office of investment, sees the SEC's decision as a step towards aligning Apple and Disney with other companies like Microsoft Corp MSFT, which already disclose their AI practices. 

He remarked that Apple and Disney have not yet addressed these ethical issues around AI. 

Both Apple and Disney had argued that these proposals were related to "ordinary business operations." Still, the SEC found the problems to transcend ordinary business matters and did not constitute micromanagement.

Many countries are developing AI regulations. In 2023, the U.S. has primarily sought non-binding deals from tech giants regarding AI product safety. Also, Europe is rapidly advancing AI regulations. 

Also Read: Microsoft President Makes Startling Revelations on Arrival of Advanced AI

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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