Nirvana Co-Founder Leads Shareholder Push for Microsoft to Rethink AI Approach
Summary:
Krist Novoselic, co-founder of the rock band Nirvana and several other shareholders, led a proposal urging Microsoft to rethink its approach to generative artificial intelligence (AI). The shareholders voiced concerns over potential spread of misinformation through Microsoft's AI, raised questions on the application of internet content liability laws to AI-generated content, and criticized the company's rush in deploying the technology. The Microsoft board dismissed the proposal, stating they had already tackled the concerns through existing and forthcoming reporting. The proposal was later declined in a shareholder vote.
The bassist and co-founder of the rock group Nirvana, Krist Novoselic, recently headed up a shareholders proposal urging Microsoft to reassess its stance on generative artificial intelligence. The proposal, formally known as Shareholder Proposal 13: Report on AI Misinformation and Disinformation, was brought forward by Arjuna Capital representing Krist Novoselic and other shareholders. According to the proposal, Novoselic and other shareholders are concerned that Microsoft might not have fully weighed the societal and business risks inherent in rapid deployment of generative AI tech.
The proposal identified several pressing issues shareholders have, including the fear that disinformation and misinformation could be propagated by models developed or backed by Microsoft. There were also queries about the applicability of Section 230, a law offering limited legal protection to internet hosts and users for third-party content, to content produced by a host's self-generated AI systems.
During his presentation, Novoselic questioned the reliability of information generated by Microsoft's AI-powered Bing, which reportedly offers incorrect answers 10% of the time. He also recalled the calls from industry experts earlier this year for a six-month halt on AI development, an appeal which Microsoft and others in the industry disregarded. Novoselic criticized Microsoft's decision as prioritizing instant gains over long-term success.
Microsoft's Board countered the proposal by arguing that they had already addressed the proposal’s demands through current and forthcoming reports. Yet Arjuna Capital argues that the proposal's objective was to extract more than just generic vows to responsible AI—they sought tangible proof of Microsoft's thorough examination of the long-term risks associated with generative AI.
Despite Arjuna Capital's efforts, the Microsoft board stated that current programs and reports were sufficient and advised shareholders to reject the proposal. The proposal was subsequently voted down by shareholders. Related news includes an antitrust inspection in the UK that Microsoft is currently facing over the structure of its OpenAI deal.
Published At
12/8/2023 9:08:25 PM
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