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Apple Shareholders Vote Against Proposal for AI Transparency Report

Shareholders on Wednesday rejected a move requiring the iPhone maker, Apple, to disclose more information about its use of artificial intelligence in its business and its ethical guidelines for the technology.  The proposal, which was defeated at the company’s annual shareholder meeting, was proposed by the pension trust of the AFL-CIO, America’s largest labor union, which has also proposed regulating AI at other technology companies.

Cook said the iPhone maker is having "incredible success with generative AI, which is why we're currently investing heavily in this area. We believe that will open up revolutionary opportunities for users when it comes to performance, problem-solving." medicine, and so on.

Apple has been slow on generative AI that can generate human-like responses to text, unlike rivals like Microsoft (MSFT.O), which opens a new tab, and Alphabet Google, which opens a new tab, shaping existing ones into objects.

On Wednesday, Cook doubted that AI was working in the background on Apple products but said there would be more information about explicit AI products later this year. Bloomberg previously reported that Apple plans to improve its ability to search for data stored on Apple devices.

"Every Mac running on Apple silicon is a separate AI machine. There isn't a better computer for AI on the market today," Cook said. Apple shareholders on Wednesday rejected a move requiring the company to disclose more information about how it uses artificial intelligence in its business and ethical guidelines for the technology.

The proposal, which did not pass but received 37.5% of the votes, was supported by the AFL-CIO’s Pension Trust, America’s largest labor union association, has also proposed AI measures at other technology companies.

Cook's salary has been staggering in recent years when his annual payout was around $100 million. But in 2023, it fell 36% to $63.2 million mainly due to smaller stock awards. His salary is $3 million. For 2024, Cook has a stock award target of $50 million, up from a target of $40 million.

Apple announced last month that two longtime directors would not be standing for re-election at the meeting because they had reached the 75-year age limit: former U.S. Vice President Al Gore and former Boeing Co. senior James Bell. But another director, Ronald Sugar, can’t leave despite turning 76 this year. Cook began the meeting by thanking Gore and Bell.

At Apple, the AFL-CIO requested reports on the company's use of AI “In its business operations and disclose any ethical guidelines that the company has adopted regarding the company’s use of AI technology."

In his comments in support of Apple's representative materials, the AFL CIO wrote: "AI systems should not be trained on patented work, or the voice, replication, and performance of professional staff, without insight, consent, and compensation from creators and rights holders."

Apple opposed the move, saying the disclosures could tip its hand in the process as it competes with rivals in the fast-paced AI space.

Conclusion: As AI becomes increasingly popular across industries, the discussion about transparency and ethics in AI is likely to continue to grow Although Apple investors may have rejected this particular proposal, discussion of the broader context of the responsible use of AI remains an important issue for stakeholders around the world.