National Legal and Policy Center’s shareholder resolution calling for greater accountability and oversight of Microsoft’s data privacy efforts regarding artificial intelligence received 36.16% support at the company’s annual meeting in December, higher than any other shareholder proposal under consideration. NLPC contended that Microsoft improperly uses users’ data to train its AI models, and now we have been proven right once again. According to Reuters:
LinkedIn has been sued by Premium customers who said the business-focused social media platform disclosed their private messages to third parties without permission to train generative artificial intelligence models.
According to a proposed class action filed on Tuesday night on behalf of millions of LinkedIn Premium customers, LinkedIn quietly introduced a privacy setting last August that let users enable or disable the sharing of their personal data.
Customers said LinkedIn then discreetly updated its privacy policy on Sept. 18 to say data could be used to train AI models, and in a “frequently asked questions” hyperlink said opting out “does not affect training that has already taken place.”
This attempt to “cover its tracks” suggests LinkedIn was fully aware it violated customers’ privacy and its promise to use personal data only to support and improve its platform, in order to minimize public scrutiny and legal fallout, the complaint said.
The company’s board of directors opposed our proposal, as explained on pages 80-81 of its 2024 proxy statement. NLPC’s response to the board’s opposition statement was filed with the Securities and Exchange Commission. The memo outlines the immense potential for Microsoft to set itself apart as a leader in privacy-focused AI. NLPC’s proposal was endorsed by Glass Lewis, one of the two major proxy advisors. Despite the high shareholder support, Microsoft has not contacted NLPC to discuss the issue. Microsoft shareholders will continue to pay for management’s failure to set ethical guardrails for AI development.