SEC Blocks Apple and Disney's Attempt to Override AI Shareholder Votes - Shocking Turn of Events Revealed!
Published on: March 10, 2024
The U.S. Securities and Exchange Commission (SEC) has ruled against Apple and Disney in their requests to skip shareholder votes on their use of artificial intelligence (AI). This decision came in response to shareholder proposals filed by the AFL-CIO, a major American labor union federation.
The AFL-CIO had submitted similar proposals to both corporations, seeking detailed reports on their AI usage and the ethical considerations involved. For Apple, the proposal requested information on AI's role in business operations and the ethical guidelines the company follows. Similarly, Disney was asked to report on its board's oversight of AI technology.
These proposals arise from concerns that AI technology might replace creative and professional workers or use their work unfairly. Issues related to AI usage have already been highlighted in recent labor disputes in Hollywood and legal actions like the New York Times lawsuit.
Apple and Disney argued that these proposals related to ordinary business operations and could be excluded from their ballots. The SEC, however, disagreed, stating that the issues raised by the proposals were significant enough to transcend ordinary business matters.
This decision by the SEC is notable as it highlights the growing attention on ethical AI usage in large corporations and sets a precedent for future corporate governance regarding AI technology.