Netflix Investors Reject Bid on AI Discrimination, Layoff Risks

Netflix Inc. shareholders on Thursday voted down a bid urging the company to divulge more about its artificial intelligence policies nearly a year after use of the emerging technology contributed to labor strife in the entertainment industry.

The proposal, brought by the AFL-CIO Equity Index Funds at Netflix’s annual meeting, asked for a report on the entertainment giant’s use of AI in its business operations and any ethical guidelines the company has adopted for its AI work.

The proposal raised concerns including potential hiring discrimination, mass layoffs and facility closures. Implementing ethical guidelines for AI use could help avoid labor disruptions or lawsuits, the bid said.

The investor efforts follow last summer’s Hollywood strikes which were prompted, in part, by concerns that AI could take credit from writers or be used to replicate actor likenesses. Aside from entertainment companies, tech giants from Meta Platforms Inc. to Microsoft Corp. have faced proposals over AI risk in the past several months, none of which passed. A proposal that called for more information about Apple Inc.'s AI use and ethics guidelines secured 37.5% of investor support in February, which is a strong result for a first-time shareholder proposal.

“The use of AI by large corporations raises significant social policy concerns,” the Netflix proposal said, adding that transparency on AI “will strengthen the company.”

Netflix did not immediately respond to a request for comment.

The streaming company said in its proxy statement that it views AI “as a potentially valuable tool for many internal employee and creator use cases to unlock creativity and innovation and efficiency and serve to assist them, rather than replace their work.”

The company said it’s already subject to collective bargaining agreements with entertainment industry unions that include AI provisions. The agreements call for Netflix and other producers to regularly meet with the unions regarding AI.

Netflix also said such a report “may require disclosure of strategic initiatives, confidential research and development activities, and other information that may harm our competitive position.”