Legal and General Investment Management (LGIM) has announced it will vote against Apple’s plan to keep the way it uses artificial intelligence (AI) secret at the tech giant’s upcoming Annual General Meeting (AGM).
Against the board’s recommendation, LGIM plans to vote in favour of a resolution which calls for Apple to produce a transparency report on its use of AI in business operations and disclose any ethical guidelines regarding AI technology.
It is concerned over an alleged lack of transparency and disclosure regarding Apple’s use and development of AI.
“The company discloses very little about its approach to managing AI-related risks, nor any principles or guidelines to inform how the company uses AI, putting the company behind its peers and increasing exposure potential regulatory and other risks,” LGIM said in a statement released today.
These risks include data privacy and security, regulatory compliance, workforce transitions, and the erosion of societal trust in AI.
Abrdn is also planning to challenge Apple, which has advised shareholders to reject the proposal, citing its broad scope.
LGIM and Abrdn have engaged in discussions with the tech company, but it has refused to commit to increasing transparency and disclosure surrounding AI. Apple did not immediately respond to City A.M.‘s request for comment.
“Apple is among several companies that have outsized influence on the integration of AI into our economy,” added LGIM, one of the top 25 holders of Apple stock.
“In line with our expectations, we believe companies like Apple should be transparent in their uses of AI and their risk management processes; therefore, we will be voting FOR this resolution.”
Apple’s AGM is scheduled for 28 February 2024.