JPMorgan Chase is making a significant strategic shift in its approach to shareholder voting by ending its reliance on external proxy advisory firms and launching an in-house artificial intelligence platform called Proxy IQ. The bank’s asset and wealth management division, which oversees $7 trillion in client assets, announced it will fully eliminate the use of outside advisors for U.S. proxy voting starting April 1, following a transition period in the first quarter. This move positions JPMorgan as the first major investment firm to completely cut ties with external proxy advisors, a practice common across the industry for data, advice, and voting recommendations on thousands of corporate governance matters annually.
The decision comes amid growing scrutiny of proxy advisory firms, which faced criticism during the Trump administration for allegedly advancing politically motivated agendas. An executive order signed in December called for increased oversight of the industry, specifically naming firms like Institutional Shareholder Services (ISS) and Glass Lewis, both of which were previously used by JPMorgan. By moving away from these external advisors, the bank aims to reinforce its „unwavering commitment to vote solely in clients’ best interests,” leveraging what it describes as an „information advantage” through proprietary technology and analysis.
In place of traditional advisory services, JPMorgan is deploying Proxy IQ, an AI-driven platform designed to aggregate and analyze data from more than 3,000 annual company meetings. The tool is intended to support independent analysis by the bank’s portfolio managers, research analysts, and stewardship teams, covering all aspects of the voting process—from data selection to detailed research. This initiative aligns with JPMorgan’s substantial $18 billion technology budget and CEO Jamie Dimon’s stated ambition to lead in the AI arena, reflecting a broader trend of financial institutions harnessing advanced technology to enhance decision-making and operational efficiency.
The shift underscores a growing trend toward in-house, technology-driven solutions in asset management, as firms seek greater control, customization, and alignment with client interests in corporate governance. While proxy advisory firms like ISS emphasize their longstanding service to institutional investors, JPMorgan’s move highlights the potential for AI to transform traditional financial advisory functions, offering scalable, data-rich insights without external dependencies. As the 2026 annual meeting season approaches, the industry will be watching closely to see how this AI-powered approach influences shareholder voting outcomes and whether other major firms follow suit.
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