Companies from social media giant Meta Platforms Inc. to software provider Microsoft Corp. are increasingly transparent about their use of artificial intelligence (AI) amidst intensifying scrutiny from government bodies, oversight committees, and investors. The shift in corporate behavior is being driven by shareholder campaigns that confront the risks AI tools could pose to sectors including finance, operations, employment, and society at large.
Meta, for example, has revised its AI labeling policy to provide clearer information about AI-generated content on its platforms. This update aims to combat the spread of misinformation. Similarly, Apple has announced increased disclosure about its AI initiatives following a proposal by shareholders seeking more details about the ethical implications of AI, which garnered 37.5% support in February.
Microsoft has also taken significant steps in this direction. In May, the tech giant released its inaugural responsible AI report, explaining how its generative AI systems are designed to mitigate misinformation and disinformation. Despite this effort, a shareholder proposal from Arjuna Capital in December asking Microsoft to further detail AI risks still received 21.2% support, indicating ongoing investor concern.
The entertainment industry is also under pressure. Netflix faced a significant vote in June, where a proposal addressing potential hiring discrimination and mass layoffs due to AI secured 43% support, a notable result for a first-time effort. The shareholder activism follows broader concerns raised by entertainment industry workers during recent strikes, which spotlighted the potential for AI to replace or reduce job opportunities.
Beena Ammanath, global and US technology trust ethics leader at Deloitte LLP, highlighted that investor and governance pressures are likely to persist, pushing companies across industries to become more transparent about their AI practices. This sentiment echoes broader regulatory movements, such as the EU’s AI Act, which aims to ensure ethical and safe AI practices within its jurisdiction.
The US response has been slower, but steps are being taken. The White House issued an executive order late last year mandating security and privacy measures for AI systems. However, the lack of a fixed regulatory playbook means that many corporations are implementing their own risk mitigation strategies, including creating high-level roles like chief AI ethics officer and setting up AI oversight committees.
Ultimately, the goal for these corporations is to balance rapid AI development with a commitment to ethical standards and transparency, a task that will require continuous adaptation and dialogue with various stakeholders.
For a comprehensive overview, visit the full article on Bloomberg Law.