Apple is being pressed by two of Britain’s largest fund managers to provide more information about its ethical policies when using AI. Their concerns range from the use of AI to create fakes and deep ones to customer privacy.
Legal & General Investment Management and Abrdn are rebelling against Apple’s management at the annual meeting of the company this week. They will support a resolution that calls for more information on Apple’s approach to the rapidly growing new technology.
The resolution asks the tech giants to publish a “transparency” report on AI, and any ethical guidelines they have adopted on their website. In the resolution, it is stated that AI may be used to violate the privacy and security of its customers or members of the general public.
AI may be used to create deep fake media content, which could lead to the spread of false information during political elections.
This raises concern about the impact AI may have on workers if it’s used to automate jobs. It could lead to mass layoffs or the closure of entire facilities.
The report adds, “the use AI in HR decisions could raise concerns over discrimination or bias towards employees”.
Apple is a major player in the film and video industry. The resolution argues that Apple must not repeat the Hollywood writers’ strikes last year over AI. It argues that adopting ethical guidelines can reduce the likelihood of this happening.
Apple advised its shareholders to reject this proposal as it was too broad. It could include “disclosure of strategic plans and initiative that would be harmful to our competitive positioning and would also be premature in the developing area”.
Apple shareholders Legal & General & Abrdn worry that AI poses material risks to the tech company
LGIM , Abrdn and both LGIM said that they had spoken with Apple about the need to provide more information on its AI use before deciding to support the resolution. The resolution was submitted by the US union association AFL-CIO.
Apple tried to exclude the resolution, but the US Securities and Exchange Commission overruled it.
LGIM, one the top 25 stockholders of Apple, stated: “Apple has a significant influence on our economy’s integration of AI.”
We believe that companies such as Apple should be transparent about their AI use and risk management processes.
LGIM believes AI presents significant opportunities for long-term value, but also has the potential to cause significant risks. These risks can stem, for instance, from data security and privacy, regulatory compliance, and workforce transitions. We also see societal trust as a risk,” said the fund manger, who manages $1 trillion in assets worldwide.
Andrew Mason, the head of active ownership at Abrdn said that Apple is exposed to a variety of risks associated with AI. The disclosure requested, including ethical guidelines could provide shareholders robust evidence of due care and safeguards which can protect long term value.
Apple didn’t respond to the request for comment, but it did say in its notice of the annual meeting: “We have committed ourselves to responsibly advance our products and services which use artificial intelligence. We already provide resources and transparency regarding our approach to machine learning and artificial intelligence. All of this is under the active supervision of our board.”