Shareholders of major US tech companies have largely ignored pension savers’ concerns over AI risks, failing to pass influential resolutions.
- Pension savers have voiced apprehension about the ethical and operational implications of AI through significant shareholder resolutions.
- Despite these resolutions garnering considerable support among savers, they failed to gain traction at company annual general meetings.
- Amazon, Meta, and Alphabet shareholders were urged to consider AI-associated risks and ethical assessments but dismissed these proposals.
- There’s a growing call for accountability and transparency from tech firms regarding AI’s development and deployment.
Despite mounting concerns among pension savers about the risks associated with Artificial Intelligence (AI) developments, shareholders of key US tech companies, part of the ‘Magnificent Seven’, have dismissed calls to address these issues. These companies, which include Amazon, Meta (Facebook), and Alphabet (Google), form a significant portion of pension funds invested by UK savers, as indicated by previous research from PensionBee.
A recent survey of PensionBee customers revealed that nearly three-quarters believe shareholders should leverage their voting rights to guide tech companies’ utilization of AI. This sentiment highlights an increasing apprehension about the ethical and operational implications AI might pose.
Pension savers showed significant support for several shareholder resolutions presented at the annual general meetings of Amazon, Meta, and Alphabet. However, these resolutions, aimed at addressing AI risks, did not pass. This outcome underscores a disconnect between shareholder actions and the pressing concerns of pension savers.
During Amazon’s AGM, a resolution was proposed to create a committee of independent directors to deal specifically with AI-related risks. Almost half of PensionBee’s customers supported this initiative, but it only received 10% of the vote.
Both Meta and Alphabet faced resolutions requesting reports on the risks associated with generative AI and suggested remedial measures. Despite support from 68% of surveyed PensionBee customers, these resolutions received just 17% of the votes at Meta and 18% at Alphabet.
Furthermore, Alphabet’s AGM included a call for an independent third-party Human Rights Impact Assessment of Google’s advertising policies and practices. This, too, failed to pass, with only 19% voting in favor.
Clare Reilly, Chief Engagement Officer at PensionBee, expressed disappointment over the failure of these resolutions. She emphasized the urgent need for tech companies to take accountability and ensure ethical practices in AI development. Reilly stated, “We see a strong desire among savers for greater accountability and transparency in how AI is developed and deployed by these tech giants.”
The research from PensionBee indicates that pension savers are acutely aware of the broader impacts of their investments, particularly in technology, where AI-related decisions could have extensive societal consequences.
The disconnect between pension savers’ concerns and shareholder actions highlights the urgent need for greater responsibility in AI’s development.
