Apple is likely to encounter fresh inquiries from shareholders concerning its artificial intelligence practices following a submission to the U.S. Securities and Exchange Commission (SEC). This submission occurred ahead of Apple’s upcoming Annual Shareholder Meeting set for February 25 at 8 a.m. PT.
The National Legal and Policy Center (NLPC) has proposed that Apple disclose its methods for acquiring and utilizing external data for artificial intelligence training. This filing, available on the SEC’s website, emphasizes potential legal challenges related to data privacy and intellectual property, despite Apple’s reputation for privacy-conscious initiatives.
Details of the Proposal
The NLPC’s recommendation, labeled as Proposal No. 4 in Apple’s 2025 proxy materials, seeks a report from Apple on its policies regarding AI data acquisition and ethical considerations. Specifically, the NLPC aims for Apple to tackle:
- The dangers associated with improperly sourced data for training AI models.
- Apple’s privacy protections during AI development.
- Actions taken to ensure that AI-generated outputs align with legal and ethical guidelines.
The NLPC asserts that, as a dominant player in the tech industry known for its commitment to user privacy, Apple should establish a higher standard in AI ethics. The proposal highlights that competitors like OpenAI, Google, and Meta are currently embroiled in lawsuits relating to alleged unauthorized data scraping for AI training.
In fact, the NLPC does not hold back in its assessment of Apple’s AI strategy:
The Company markets itself as privacy-friendly – with significant success – but the revenue potential from its extensive user base is too great to overlook, leading Apple to delegate its unethical practices to third parties.
For instance, the Company maintains a long-standing agreement with Alphabet – a significant competitor – designating Google as the default search tool on Apple devices. This arrangement is estimated to yield $25 billion for Apple, constituting 20% of its pre-tax profits. This partnership not only draws antitrust attention but also allows Alphabet to gather vast amounts of data from Apple users, despite the multitude of ethical and privacy breaches associated with Alphabet. Essentially, Apple shifts its questionable actions onto Alphabet while reaping hefty financial rewards.
This approach embodies the strategy Apple intends to pursue with AI, which includes exploring partnerships with firms like OpenAI, and suggests interest in collaborating with Meta, another frequent violator of privacy principles.
Implications for Apple
Thus far, Apple has adopted a more cautious stance on AI compared to several competitors, opting for on-device intelligence and privacy-centric machine learning instead of large-scale, cloud-based models.
Specifically, Apple has highlighted its Private Cloud Compute model, designed to transmit and retain no account information during the utilization of Apple Intelligence.
However, the limits of Apple’s privacy policies become apparent when it integrates with partners. Currently, OpenAI’s ChatGPT is the sole partner, but Apple has expressed interest in future collaborations with Google for Gemini integration.
Apple explicitly mandates user consent to activate third-party AI integration with Apple Intelligence — not just during initial usage.
Next Steps
Initially, it is highly likely that the proposal will be rejected. Apple typically recommends against endorsing shareholder initiatives, often resulting in their defeat. We will provide updates on the outcome next month.
Nevertheless, the sharp claim of outsourcing “unethical practices” for AI technology development is noteworthy, especially given analysts’ commendations of Apple for steering clear of excessive spending to keep pace with AI rivals while instead facilitating their services on Apple platforms.
What are your thoughts? Should Apple be more transparent regarding its AI training data? Share your opinions in the comments below.
Popular iPhone Accessories
FTC: We utilize automatic affiliate links that generate income. More.
