At its forthcoming annual gathering, the Walt Disney Co. will introduce artificial intelligence as part of the shareholder ballot, introducing a new dimension beyond a mere proxy dispute.
Both Disney and Apple are required to address shareholder propositions from the AFL- CIO Equity Index Cash concerning the clarification of their utilization of synthetic intelligence, as mandated by the Securities and Exchange Commission.
Per the AFL-CIO proposal, Disney is tasked with “drafting and releasing a transparency report on the Company’s official website elucidating the application of Artificial Intelligence (‘AI’) in its business activities, defining the Board’s oversight role in AI implementation, and outlining any ethical guidelines the company has established regarding AI utilization.”
Similarly, Apple’s communication requested a disclosure “regarding the incorporation of Artificial Intelligence (‘AI’) in its business operations and the revelation of any ethical principles the company has embraced concerning AI technology.”
Despite both companies arguing that these concepts were not germane to their routine affairs and attempting to exclude them from their annual proxy contentions, the SEC ruled otherwise, conveying to Apple a similar message and informing Disney that “the Proposal addresses issues beyond standard business matters and should not be omitted.”
Following the SEC’s decision to include the propositions in Disney and Apple’s forthcoming proxy statements, shareholders will have the opportunity to vote on whether they desire an AI report.
The AFL-CIO is associated with various organizations such as the WGA East, Actor’s Equity, Communications Workers of America, and the American Federation of Musicians, which jointly announced the initiative in October, asserting that “the demonization of AI in our workforce poses a significant threat to the fundamental structure of the American economy and jeopardizes the already declining middle class.”
The coalition also expressed interest in obtaining AI-related insights from Warner Bros.’ proxy statements, as well as from Netflix, Comcast, and Discovery. It remains uncertain whether these companies opposed the inclusion of the proposal in their proceedings.
AI has emerged as a contentious labor issue in Hollywood and will be a focal point for the WGA and SAG-AFTRA in the coming year.
