Apple Inc (NASDAQ:AAPL) shareholders have voted against a proposal for an artificial intelligence (AI) transparency report. The proposal was put forward by AFL-CIO Equity Index Funds, aiming to examine the ethical use of AI by the company.

What Happened: The proposal was rejected during Apple’s annual meeting on Wednesday, as reported by Bloomberg. The proposal sought to shed light on the ethical guidelines Apple follows in adopting AI, addressing potential social policy issues such as biased decisions and customer privacy violations.

The shareholders also voted against measures concerning equal employment policies, civil liberties, racial and gender pay gaps, and human rights. However, they approved the board slate and the company’s executive compensation plan.

Interestingly, the proposal was presented by an Apple retail store employee, Michael Forsythe, who expressed concerns about the company’s expansion into AI. This comes at a time when Apple is reportedly accelerating its integration of generative AI into its software.

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Two long-serving directors, Al Gore and James Bell, have officially stepped down due to reaching the age threshold of 75. Despite this, another director, Ronald Sugar, who will turn 76 later this year, is staying on the board.

Why It Matters: The rejection of the AI transparency proposal comes on the heels of a significant strategic shift by Apple. The company recently abandoned its electric car project to focus on generative AI, a move that could have influenced the shareholders’ decision.

Earlier, the Apple board had advised against voting in favor of the shareholder proposal for AI transparency, citing potential competition risks. This was part of a series of five shareholder proposals covering topics such as gender pay gaps, privacy, and human rights.

Meanwhile, Apple’s CEO, Tim Cook, has seen a significant change in his pay structure. After facing a pay cut in 2023, Cook’s annual compensation dropped by 36% to $63.2 million, largely due to smaller stock awards. His salary remains at $3 million, with a target stock award for 2024 set at $50 million.

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