Apple Investors Reject Bid for Transparency on AI Risks, Ethics

Apple shareholders rejected a bid seeking more information about how the tech giant uses artificial intelligence and what ethical guidelines it’s adopted to navigate the technology.

The proposal, filed by the AFL-CIO Equity Index Funds, said that adopting ethical frameworks for using AI will strengthen Apple’s position “as a responsible and sustainable leader in its industry.” Apple did not provide the vote percentage at the meeting and did not immediately respond to a request for comment.

The vote comes as tech and other companies are being pressed on their use of AI. In December, Microsoft shareholders voted down a proposal seeking more information about the risks AI could pose to the business and the public. The Securities and Exchange Commission also warned companies in December not to make false claims about their artificial intelligence capacities.

“We believe that the adoption of ethical guidelines for the use of AI can help improve our company’s bottom line by avoiding costly labor disruptions,” the proposal said. The fund pointed to the writers’ and actors’ strike last year that was fueled in part by concerns over the use of AI. Shareholder momentum around workers’ rights proposals has been building following highly publicized strikes, including those in Hollywood, as well as attention on alleged labor violations.

The vote comes a day after Bloomberg News reported that Apple is abandoning its efforts to build an electric car and is instead shifting some employees from that project to its AI team.

In its proxy statement, Apple said it already provides “resources and transparency on our approach to artificial intelligence and machine learning.” It also said the proposal is overly broad, and “could encompass disclosure of strategic plans and initiatives harmful to our competitive position and would be premature in this developing area.”

“Apple has been and will continue to be deliberate and thoughtful in the development and deployment of artificial intelligence,” the company said.

Pay Equity

Another proposal that did not pass, filed by Arjuna Capital, sought a report on median pay gaps across race and gender, as well as potential reputational risks resulting from that gap and risks in retaining diverse talent.

Similar proposals on pay equity secured significant support last year, for example a bid at Kroger that passed in June.

“Apple reports only statistically adjusted gaps but ignores unadjusted gaps, which address structural bias women and minorities face regarding job opportunity and pay, particularly when men hold most higher paying jobs,” the proposal said. “Median pay gaps show, quite literally, how Apple assigns value to employees through the roles they inhabit and pay they receive.”

In its proxy statement, Apple said it already has “a comprehensive approach to promoting pay equity and diverse representation at every level of the Company.”

“Consistent with our commitment to be a leader in pay equity, every year we conduct a robust pay equity analysis encompassing the base salary, bonuses, and stock awards of 100% of our employees that utilizes sophisticated data inputs to assess appropriate compensation bands for each employee, and adjustments are made wherever employees fall below the appropriate range,” the company said, adding that its metrics are assessed by a third-party firm.