A non-profit organization in the USA is aiming to compel Apple to provide detailed information about its data collection practices for its Artificial Intelligence (AI) and the ethical guidelines underlying these practices. The proposal by the National Legal and Policy Center (NLPC), submitted to the US Securities and Exchange Commission (SEC), seems to have little chance of success. Apple itself advises shareholders to reject the proposal. Apple Intelligence has been gradually introduced since iOS 18.1.
The NLPC wants Apple to explain where it acquires external data for its AI training and how exactly it uses this data. Specifically, the NLPC urges an investigation into potential risks associated with using improperly collected training data. Apple should clarify what data protection measures have been taken during AI development and what steps are being applied to comply with legal and ethical standards.
A long-standing collaboration with Google’s parent company, Alphabet, is cited as a reason for concern. This collaboration involves Apple setting Google as the default search engine on its devices. Allegedly, Google pays Apple 25 billion US dollars per year for this. The NLPC claims that Google can collect large amounts of data on Apple users through this arrangement, and Apple indirectly profits from it. Similar concerns arise regarding the collaboration with ChatGPT developer OpenAI in Apple Intelligence and potentially with Facebook’s parent company, Meta, which has occasionally been a topic of speculation.
Apple promotes its Apple Intelligence with a user- and privacy-friendly approach, distinguishing it from other AI models. Apple emphasizes that many AI data are processed locally on the device. If data transfer to the cloud is necessary, the company ensures that only essential data is transferred, and it is anonymized as much as possible. Apple also invests heavily in its cloud servers. Under the name “Private Cloud Compute,” these servers are designed to forgo long-term memory.
Apple’s shareholder meeting will take place on February 25, 2025, at the company’s headquarters in Cupertino.
The NLPC’s proposal reflects growing concerns about data privacy and the ethical use of AI. As AI technologies continue to evolve, companies face increasing scrutiny over how they handle user data. Transparency in data collection and usage practices is becoming a crucial issue for tech giants like Apple. Organizations and consumers alike are calling for more accountability and ethical considerations in AI development.
Apple’s stance against the NLPC’s proposal suggests the company believes it is already meeting necessary ethical and legal standards. However, the debate highlights the broader industry challenge of balancing innovation with privacy and ethics. As AI becomes more integrated into consumer technology, the pressure on companies to maintain user trust will likely increase.
The collaboration with Google, in particular, raises questions about the potential conflicts of interest and the extent of data sharing between the two tech giants. The financial arrangement between Apple and Google underscores the complex relationships within the tech industry, where partnerships can have significant implications for user privacy.
Apple’s emphasis on local data processing and minimizing cloud data transfer is a step towards addressing privacy concerns. However, the effectiveness of these measures depends on the company’s transparency and the robustness of its data protection strategies. The upcoming shareholder meeting could provide a platform for further discussion on these critical issues.
As the tech industry navigates the challenges of AI and data privacy, the actions and policies of leading companies like Apple will be closely watched. The outcome of the NLPC’s proposal and the shareholder meeting may influence future discussions on AI ethics and data protection.