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Apple Faces Shareholder Scrutiny Over AI Ethics in 2025 Ballot

Apple, long recognized for its staunch stance on user privacy and security, is now facing shareholder pressure regarding its approach to artificial intelligence. As AI continues to evolve, ethical concerns surrounding data acquisition and usage have gained prominence, prompting a critical proposal set to be voted on at Apple’s Annual Shareholder Meeting in February 2025.

The Shareholder Proposal: A Call for AI Transparency

In a filing with the Securities and Exchange Commission (SEC), the National Legal and Policy Center (NLPC) has introduced Proposal 4, titled “Report on Ethical AI Data Acquisition and Usage.” This initiative urges Apple to release a comprehensive report detailing the potential risks AI development poses to its operations, financial stability, and public welfare. The proposed report would specifically evaluate Apple’s handling of external data in training its AI models and the measures taken to mitigate associated risks.

If approved, Apple would be required to publish this report within a year of the meeting and update it annually. The aim is to foster greater transparency and reinforce Apple’s commitment to ethical AI practices.

Concerns Over AI Data Practices

The NLPC’s filing underscores growing concerns over AI data ethics, including unauthorized data collection and potential exploitation of copyrighted material. Highlighting previous accusations against tech giants, the proposal suggests that Apple’s involvement with companies like OpenAI and Alphabet could expose it to similar scrutiny.

Notably, Apple’s historical dedication to user privacy has been widely praised. However, the NLPC argues that its financial interests may compromise these principles. The filing references Apple’s lucrative partnership with Alphabet, suggesting that Google’s access to Apple user data raises ethical questions. Additionally, Apple’s rumored discussions with Meta—a company often criticized for privacy violations—further fuel concerns about its AI strategy.

Apple’s Response and Likely Outcome

While the proposal challenges Apple’s ethical standing, its impact may ultimately be limited. Apple typically advises shareholders on voting decisions, and given its influence, it is likely to recommend voting against the measure. Historically, shareholders tend to align with the company’s recommendations, making approval of the proposal unlikely.

That said, the pressure from the NLPC may still influence Apple’s AI policies. The company has taken proactive steps to address ethical concerns, including its preference for on-device processing to enhance privacy. Its Private Cloud Compute initiative, which encrypts user data to prevent Apple from accessing queries, is another effort to maintain trust. Moreover, Apple has explored legal means of acquiring data for AI training, seeking paid access to copyrighted materials instead of resorting to web scraping.

Ethical AI: A Persistent Debate

Even if the proposal does not pass, it reinforces a broader conversation about ethical AI development. As Apple expands its AI capabilities, maintaining transparency and accountability will be crucial in preserving user trust. The tech giant’s next moves will likely be closely watched by shareholders and privacy advocates alike, ensuring that ethical concerns remain at the forefront of its AI strategy.

Source: appleinsider.com

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