Apple (NASDAQ:AAPL) and Disney’s (NYSE:DIS) efforts to avoid shareholder votes on their use of artificial intelligence have been brushed aside by the U.S. Securities and Exchange Commission. According to Reuters, the regulator has rejected requests from the two companies to exclude shareholder votes about the use of AI from their annual meetings. As companies ramp up their use of AI and devise new use cases for the technology, investors are seeking additional details.
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Reportedly, a pension trust of the AFL-CIO, the largest American labor union federation, has put forth similar proposals at multiple other tech companies. The labor group is seeking clarity on any guidelines Apple may have adopted associated with its use of AI. Concerns about unethical (and without due compensation) use of works from creators to advance the technology have so far resulted in the writers’ strike at Hollywood and the New York Times lawsuit, among other pushbacks.
While Apple and Disney argued that the proposals are associated with “Ordinary business operations” and hence should be excluded from ballots, the SEC noted that these proposals are beyond ordinary business matters and do not seek to micromanage their operations.
What is the Price Target for DIS?
Shares of both Apple and Disney are trending lower in the early session today. Following a nearly 44% share price surge over the past year, Apple’s market capitalization is now hovering above $2.8 trillion. Meanwhile, Disney’s share price has contracted by about 1.5% during this period. Still, analysts expect a higher upside potential of 21.1% in Disney stock based on a Strong Buy consensus rating and an average price target of $109.67.
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