Despite increasing concerns about Artificial Intelligence (AI), shareholders at top US tech firms are not heeding pension savers’ calls for action.
- Shareholders of major tech giants—part of the Magnificent Seven—have dismissed resolutions aimed at addressing AI risks.
- Research indicates 10% of UK-defined contribution pension funds are vested in these tech companies, highlighting savers’ exposure to AI impacts.
- A PensionBee survey reveals nearly 72% of pension savers believe shareholders should use their power to influence AI use.
- Despite significant support from pension savers, resolutions at Amazon, Meta, and Alphabet failed to pass with low voting percentages.
Despite growing concerns over AI, shareholders of three major US tech companies, part of the Magnificent Seven, have dismissed resolutions addressing associated risks. This decision follows findings by PensionBee, revealing approximately 10% of UK-defined contribution pension funds are invested in these tech giants, including Amazon, Meta, and Alphabet.
A recent survey by PensionBee highlighted a strong sentiment among pension savers, with nearly 72% urging shareholders to utilise their voting rights to influence AI utilisation within these firms. This growing apprehension reflects ethical and operational concerns regarding AI’s future impact.
Substantial support for shareholder resolutions was noted during annual general meetings (AGMs) of Amazon, Meta, and Alphabet. However, despite this backing, these resolutions did not achieve the necessary votes to pass, indicating a disconnect between shareholder actions and savers’ desires.
At Amazon’s AGM, a resolution urged the establishment of an independent committee to address AI risks. Although almost half of PensionBee customers supported it, the resolution only secured 10% of the vote.
Similarly, Meta and Alphabet AGMs witnessed resolutions calling for reports assessing generative AI risks and proposing measures. Despite 68% support from surveyed PensionBee customers, these resolutions garnered just 17% and 18% of votes at Meta and Alphabet, respectively.
Additionally, at Alphabet’s AGM, a proposal for an independent third-party Human Rights Impact Assessment on Google’s advertising policies was introduced. However, it failed, receiving only 19% of the vote.
Clare Reilly, PensionBee’s Chief Engagement Officer, expressed disappointment over the resolution failures, highlighting a desire for accountability and transparency in AI’s development within these companies. Reilly emphasised the broader implications of AI advancements and the necessity not to overlook ethical and social considerations.
PensionBee’s research underscores that pension savers are conscious investors seeking responsible corporate stewardship, especially significant within the tech sector, where AI decisions may have long-reaching societal effects.
The disconnect between pension savers’ concerns and shareholder actions underscores the need for enhanced stewardship and accountability around AI-related risks.
