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Amazon.com Inc.’s (AMZN) ties with the Israeli military and the U.S. Department of Homeland Security came under scrutiny on Monday after the American Baptist Home Mission Societies reportedly filed a shareholder resolution questioning whether these contracts comply with its policies on responsible AI.
Amazon’s peers, Microsoft Corp. (MSFT) and Alphabet Inc.’s (GOOG) (GOOGL) Google, have faced protests in recent years over the companies’ business ties to Israel.
According to a Bloomberg report, the shareholder resolution filed by ABHMS asked Amazon’s board to determine whether the company’s sale of cloud and AI services to the Israeli military and the DHS were in line with Amazon’s internal standards.
The ABHMS resolution pointed to legal and reputational risks to Amazon arising from its business ties with the two entities.
As part of its “Responsible AI” guidelines, Amazon focuses on fairness, safety, privacy and security, transparency, and governance, among other principles.
Amazon shares were down more than 1% in Monday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.
The resolution states that the DHS hosts a biometric and biographic information database on Amazon’s cloud service, AWS. It cites accusations that the DHS violated the privacy, free speech, and due process rights of people, while also noting that departmental units undertook arbitrary detentions.
“Despite this approach, Amazon continues to sell to and maintain contracts with entities engaged in rights-violating applications of its AI and related technologies, suggesting misalignment between its policies and practice,” states the ABHMS resolution, according to the report.
Earlier, Microsoft and Google have also faced scrutiny over their business links with the Israeli government and its military. Microsoft faced allegations that its Azure cloud service was used by a unit of the Israel Defense Forces (IDF) to store data files of phone calls obtained through surveillance of civilians in Gaza and the West Bank.
The company announced in September that it had ceased and disabled a set of services to a unit in the Israeli Ministry of Defense after a review of the allegations.
Google, too, has faced protests over its involvement in “Project Nimbus,” a cloud computing platform that is designed for Israel’s government agencies. According to a Reuters report, the company terminated 28 employees for participating in protests over this.
AMZN stock is up 2% year-to-date, but down 1% over the past 12 months.
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