legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

## Shareholder Votes on AI Use: SEC Decision

Shareholders of Disney and Apple will be given the chance to vote on proposals regarding the use of artificial intelligence, thanks to a recent determination by the Securities and Exchange Commission (SEC).

As first reported by Reuters, the SEC issued notices on Wednesday stating that the companies could not exclude proposals calling for an assessment of their use of AI. This decision will have a significant impact on the upcoming annual shareholder meetings, which are generally held in March or April. DisneyÔÇÖs meeting, in particular, will be closely watched due to efforts by activist investors to gain representation on the board.

The integration of AI technology has become a central issue for Hollywood, especially after playing a prominent role in dual strikes last year by the Writers Guild of America (WGA) and the Screen Actors GuildÔÇÉAmerican Federation of Television and Radio Artists (SAG-AFTRA). Furthermore, publishers and other owners of intellectual property have raised concerns over the rise of AI. This is exemplified by The New York Times recently filing a lawsuit against OpenAI for copyright infringement.

The push for closer scrutiny of AI comes not only from shareholders, but also from a pension trust of the AFL-CIO, the labor union federation. The WGA, which is part of the AFL-CIO federation, is among the 60 U.S. and international guilds represented by the federation, which in total represents 12.5 million union members.

Initially, the companies had argued that the AI proposals could be excluded from the shareholder meeting agenda because they pertained to ÔÇ£ordinary business operationsÔÇØ rather than requiring a special vote. However, the SEC disagreed with this perspective. In letters laying out the agencyÔÇÖs determination on the issue, the commission stated that the AI proposal ÔÇ£transcends ordinary business matters and does not seek to micromanage the company,ÔÇØ according to the Reuters report.

## How AI legalese decoder Can Help

AI legalese decoder can assist companies in better understanding the legal implications of using AI and how it may impact their business operations. It can provide insights and recommendations for addressing shareholder proposals related to AI, helping companies navigate the complex legal and regulatory landscape surrounding AI technology. Additionally, AI legalese decoder can also analyze the SEC determinations and provide guidance on compliance with regulatory requirements related to AI use.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link