Two of Britain’s biggest fund managers are pushing Apple for more information on its ethical policies for using AI amid concerns ranging from its use to create deep fakes to the privacy of customers.
Legal & General Investment Management (LGIM) and Abrdn will rebel against the management of Apple at its annual meeting this week by backing a resolution calling for more information about its approach to the fast-growing new technology.
The resolution calls for the tech giant to prepare a “transparency report” on AI and to disclose any ethical guidelines it has adopted in a report on its website. The resolution says: “AI may be used in ways that violate the privacy of customers and members of the public.
“AI may be used to generate deep fake media content that may result in the dissemination of false information in political elections.”
It also raises concerns about the impact AI could have on employees if it is used to automise jobs, resulting in mass layoffs and the closing of entire facilities.
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It adds that “the use of AI in human resources decisions may raise concerns about discrimination or bias against employees”.
Apple has become a growing force in the world of film and video content. Among the business arguments the resolution puts forward is that the company must avoid a repeat of last year’s Hollywood writers’ strike over the use of AI. Adopting ethical guidelines could reduce the chances of that, it argues.
Apple has advised shareholders to reject the proposal because it is too broad and could “encompass disclosure of strategic plans and initiatives harmful to our competitive position and would be premature in this developing area”.
Both LGIM and Abrdn said they had discussed with Apple the need for it to disclose more information about its use of AI before deciding to back the resolution, which was filed by the US union federation AFL-CIO.
Apple had attempted to exclude the resolution but was overruled by the US Securities and Exchange Commission.
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LGIM, one of the top 25 holders of Apple stock, said: “Apple is among several companies that have an outsized influence on the integration of AI into our economy.
“We believe companies like Apple should be transparent in their uses of AI and their risk management processes.
“As AI becomes increasingly embedded in our society, LGIM believes that it presents opportunities to drive long-term value and has the potential to create significant risks, stemming, for example, from data privacy and security, regulatory compliance and workforce transitions. Importantly, we also view societal trust in AI as a material risk,” said the fund manager, which holds $1 trillion of assets around the world.
At Abrdn, Andrew Mason, head of active ownership, said: “Apple is exposed to various risks associated with the use of AI and the requested disclosure, including ethical guidelines, could provide shareholders with robust evidence of due diligence and safeguards that can protect long-term value.”
Apple did not respond to a request for comment but in the notice of its annual meeting it said: “We are committed to responsibly advancing our products and services that use artificial intelligence and already provide resources and transparency to our approach to artificial intelligence and machine learning, all under the active oversight of our board.”
