How Will AI Affect Investors? Clues From This Year’s Annual Meetings
In 2023, members of the Investor Alliance for Human Rights filed a series of 15 human and digital rights-related proposals at tech companies Alphabet GOOGL, Meta META, and Amazon.com AMZN.
Harrington Investments, a member of the alliance, filed a proposal in April 2023 suggesting that a performance review of Alphabet’s Audit and Compliance Committee is necessary to effectively oversee the company’s foray into AI. Such a novel space, says Harrington, “against the backdrop of grave legal, regulatory, and social challenges” begs for thorough oversight.
Trillium Asset Management, another alliance member, presented a shareholder proposal in June 2023 “seeking better social impact disclosures regarding the company’s algorithms and related technologies.” Their proposal was favored by 43% of outside investors at Alphabet, which indicates strong consumer support for recommendations to outline safe and consistent practices surrounding AI.
In a statement, the Investor Alliance for Human Rights said, “the issues raised in the proposals speak to the power and influence these tech giants wield over society and highlight how a lack of adequate oversight structures to mitigate potential harms raises risks for all stakeholders.”