APPLE INC. | Report on the use of AI at APPLE INC.

Status
37.53% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
AAPL
Lead filer
Segal Marco Advisors
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Digital rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that Apple Inc. prepare a transparency report on the company’s use of Artificial Intelligence (“AI”) in its business operations and disclose any ethical guidelines that the company has adopted regarding the company’s use of AI technology. This report shall be made publicly available to the company’s shareholders on the company’s website, be prepared at a reasonable cost, and omit any information that is proprietary, privileged, or violative of contractual obligations.
Supporting statement
Supporting Statement: If adopted, this proposal asks our company to issue a transparency report on the company’s use of AI technology and to disclose any ethical guidelines that the company has adopted regarding AI technology. We believe that adopting an ethical framework for the use of AI technology will strengthen our company’s position as a responsible and sustainable leader in its industry. By addressing the ethical considerations of AI in a transparent manner, we can build trust among our company’s stakeholders and contribute positively to society.

The adoption of AI technology into business raises a number of significant social policy issues. For example, the use of AI in human resources decisions may raise concerns about discrimination or bias against employees. The use of AI to automate jobs may result in mass layoffs and the closing of entire facilities. AI may be used in ways that violate the privacy of customers and members of the public. AI technology may be used to generate “deep fake” media content that may result in the dissemination of false information in political elections.

The White House Office of Science and Technology Policy has developed a set of ethical guidelines to help guide the design, use, and deployment of AI. These five principles for an AI Bill of Rights are 1) safe and effective systems, 2) algorithmic discrimination protections, 3) data privacy, 4) notice and explanation, and 5) human alternatives, consideration, and fallback. (White House Office of Science and Technology Policy, “Blueprint for an AI Bill of Rights: Making Automated Systems Work for the American People,” October 2022, available at https://www.whitehouse.gov/ostp/ai-bill-of-rights).

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. In 2023, writers and performers went on strike against the Alliance of Motion Picture and Television Producers in part over concerns that the use of AI technology to create media content will infringe on the intellectual property and publicity rights of writers and performers and potentially displace human creators. (Wall Street Journal, “Hollywood’s Fight: How Much AI Is Too Much?,” July 31, 2023, available at https://www.wsj.com/articles/at-the-core-of-hollywoods-ai-fight-how-far-is-too-far-f57630df).

In our view, AI systems should not be trained on copyrighted works, or the voices, likenesses and performances of professional performers, without transparency, consent and compensation to creators and rights holders. We also believe that AI should not be used to create literary material, to replace or supplant the creative work of professional writers.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
VidaCaixa For
CANDRIAM For At Candriam, we believe that technology companies should be as transparent as possible to guarantee the safe use of rapidly evolving technologies such as Artificial Intelligence. The demand formulated by this resolution is aligned with this view.

As regulation appears, on average, several years after new developments it is essential for technology firms to display the highest standard in ethical practices in these early stages of deployment. Artificial Intelligence comes along with the probability of introducing biases, discriminations, misinformation, and other misuses and abuses against employees, users and society at large. We know that companies that can best avoid these issues are those that are the most transparent, accountable, and open to engaging with outside stakeholders such as civil society, academia, investors, etc. The terms ‘trustworthy AI’, ‘explainable AI’ are often used when referring to ethical practices. Our discussions on AI-related issues with technology companies has taught us that those companies that are the most transparent and open about the way they develop and deploy AI algorithms are also those that display the best ethical practices. While Apple’s existing guidelines and practices broadly address the social topics mentioned in the proposal, they do not specifically refer to the adverse impacts that AI could generate. Furthermore, certain of the company's peers have committed to mitigate risks posed by AI.

By being transparent on their AI principles, guidelines and processes, technology leaders, such as Apple, can also set a high standard for an ethical use of AI for the whole industry.

As such, we vote FOR this shareholder proposal.
Anima Sgr For As the company's lack of disclosure regarding AI limits shareholders' ability to evaluate the risks associated with the use of AI or the actions the company is potentially taking to mitigate those risks. Improved transparency and the disclosure of an ethical guideline may alleviate shareholder concerns.
Kutxabank Gestion SGIIC SAU. For
Rothschild & co Asset Management For

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