Regulator denies Disney and Apple’s request to forego voting on AI

The US Securities and Exchange Commission recently made a significant ruling against Apple and Disney, stating that they cannot disregard shareholder votes concerning the utilization of AI, proposed by a labor group. Both companies tried to dismiss requests for reports on their AI usage from their upcoming annual meetings. The AFL-CIO, a labor union, sent similar requests to four other tech firms as well.

For Apple, the AFL-CIO sought information on how AI is used commercially and any ethical standards imposed. Disney was asked to provide a report on its board’s oversight of AI usage. The AFL-CIO emphasized that AI systems should not be trained on copyrighted works or artists’ creations without proper transparency, consent, and compensation for rights holders. The SEC dismissed Apple and Disney’s argument that these proposals were related to ordinary business activities and thus could be excluded.

The government clarified that these ideas went beyond typical business concerns and weren’t about micromanaging the companies. With the SEC’s rulings, the AFL-CIO expects that Apple and Disney will align their AI disclosures with other corporations like Microsoft. Both companies haven’t responded to requests for comment yet.

Why does it matter?

This ruling marks a crucial shift towards embracing ethical AI practices and holding companies accountable. It sets the stage for a new era where businesses are required to openly disclose and abide by ethical guidelines when using cutting-edge technologies. This decision is likely to spark vital discussions in the industry and add momentum to the ongoing conversation about the responsible use of AI across various business functions.