National Legal and Policy Center is, for the second year in a row, urging shareholders of Microsoft to vote for its shareholder proposal to increase reporting on the potential for unethical data usage in artificial intelligence development, its risks, and its oversight. The annual meeting is scheduled for December 5.
As Microsoft races to dominate AI—bringing enormous reputational, legal, and regulatory exposure—shareholders deserve board-level clarity about what types of data are used to build these systems, how that data is obtained, and the safeguards the company has in place to prevent abuse. Our “Report on AI Data Usage Oversight” proposal lays out the issue:
Resolved: Shareholders request the Company prepare a report, at reasonable cost, omitting proprietary or legally privileged information, to be published within one year of the Annual Meeting and updated annually thereafter, which assesses the risks to the Company’s operations and finances, and to public welfare, presented by the real or potential unethical or improper usage of external data in the development and training of its artificial intelligence offerings; what steps the Company takes to mitigate those risks; and how it measures the effectiveness of such efforts.
In a proxy memorandum report circulated to fellow investors in the company, which it also filed with the U.S. Securities and Exchange Commission, NLPC raises a laundry list of concerns, including Microsoft’s relationship with the US federal government, its partnership with OpenAI, pending lawsuits, increasing regulatory scrutiny, and suspect record on data privacy. NLPC also opposes the reelection of Reid Hoffman to the company’s board of directors.
Microsoft’s AI ambitions make rigorous data-ethics governance non-negotiable. A concise, board-vetted, annually updated report on AI data sourcing and controls will protect shareholder value by reducing legal, regulatory, and reputational risk—without revealing competitive secrets or imposing undue cost. We urge investors to vote FOR NLPC’s “Report on AI Data Usage Oversight” at the December 5 annual meeting, and to hold the board accountable for credible oversight—beginning with opposition to the reelection of Reid Hoffman.
Shareholders should not have to infer Microsoft’s risk posture from headlines and lawsuits. They deserve clear metrics, defined safeguards, and proof that management’s practices match its promises. Vote FOR transparency and FOR stronger governance.
