Shareholders of three of the largest US tech companies under the ‘magnificent seven’ have dismissed calls to address the risks associated with artificial intelligence (AI) despite pressure from pension savers.
This follows previous research by PensionBee, which revealed that approximately 10% of defined contribution pension savers’ funds in the UK are invested in the ‘magnificent seven’, which includes Amazon, Meta, and Alphabet.
Further, nearly three-quarters (72%) of PensionBee customers said that shareholders should leverage their voting rights to influence how tech companies utilise AI amid growing concerns about the ethical and operational implications of AI.
In recent AGMs at Amazon, Meta and Alphabet, there was signficant support from pension savers for shareholder resolutions. However, these resolutions failed to pass, reflecting the disconnect between shareholder actions and pension savers’ concerns
During Amazon’s AGM, a shareholder resolution was introduced that urged Amazon’s board to establish a committee of directors to address AI-associated risks. Almost half (45%) of PensionBee customers supported this resolution, yet, it collected only 10% of the total vote.
Further, Meta and Alphabet’s AGMs included a shareholder resolution requesting the board issue a report assessing the risks associated with AI and proposing remedial measures. This resolution was supported by 68% of PensionBee customers, but the resolution received only 17% of the vote at Meta’s AGM and 18% at Alphabet’s AGM.
Clare Reilly, chief engagement officer at PensionBee, said: “The failure of these resolutions is a disappointment for pension savers who tell us that they are increasingly concerned about the ethical implications of AI.
“We see a strong desire among savers for greater accountability and transparency in how AI is developed and deployed by these tech giants. Their management teams have a responsibility to listen to these concerns and take action to mitigate potential risks. The rapid pace at which AI technology is advancing brings with it significant ethical and social considerations, and it is imperative that these are not overlooked in the pursuit of innovation.
“PensionBee’s research shows that pension savers are not just passive investors; they are keenly aware of the broader impact of their investments and are calling for responsible stewardship from the companies in which they are invested. This is particularly crucial in the tech sector, where the decisions made today about AI could have far-reaching consequences for society.”
