TLDR: Canadian investors are increasingly pushing major companies to adopt ethical AI practices, with shareholder proposals focusing on AI ethics appearing on annual general meetings. This trend, mirroring developments in the U.S., aims to drive corporate accountability and adherence to AI standards, including signing voluntary codes of conduct developed by the federal government.
Canadian investors are spearheading a significant movement to embed ethical artificial intelligence practices within the nation’s largest corporations. This year, annual general meetings of Canada’s most valuable companies saw a novel addition to their agendas: shareholder proposals centered on AI ethics. This marks a new frontier for shareholder activism in Canada, according to Renée Loiselle, a Montreal-based partner at law firm Norton Rose Fulbright, who noted that such proposals were absent last year but are prevalent now.
The push for AI accountability is driven by the growing awareness of both the opportunities and inherent risks associated with AI systems. Juana Lee, associate director of corporate engagement at the Shareholder Association for Research and Education (SHARE), highlights that shareholders are keenly aware of these dual aspects. Concerns range from AI systems fabricating information and misleading users to broader issues like potential job losses, cyber warfare, and even existential threats.
This trend in Canada mirrors developments in the United States, where AI-related shareholder proposals first emerged approximately two years ago. In the U.S., companies like Apple, The Walt Disney Co., and Netflix have faced such proposals. Notably, a proposal at Netflix advocating for disclosure of AI use and adherence to ethical guidelines garnered 43.3% support. Experts like Lee and Loiselle anticipate that the frequency and scope of AI-related shareholder requests will continue to grow in Canada, following the American precedent.
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The objective of these proposals is to foster greater corporate accountability and ensure adherence to robust AI standards. This includes encouraging companies to sign voluntary codes of conduct developed by the federal government, aiming for increased transparency and responsible AI deployment. This development is seen as a ‘really positive development’ leading to ‘improvement related to further transparency,’ as stated by Lee. The ongoing pressure from Canadian shareholders is expected to compel companies to adopt higher AI standards, ensuring that the rapid advancement of artificial intelligence is accompanied by strong ethical safeguards.
