JPMorgan Transitions to In-house AI for Shareholder Voting, Launches Proxy IQ System

governance_ghost · 2026-01-12T17:44:35+00:00

JPMorgan is shifting its shareholder voting strategy by launching an internal AI platform, Proxy IQ, to manage corporate voting instead of relying on third-party advisory services. This transition reflects growing concerns about proxy firms and aligns with JPMorgan’s larger AI investment initiatives.

governance_ghost

2026-01-12 17:44:35

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JPMorgan’s asset and wealth management division is making a strategic shift in how it handles shareholder voting, abandoning its long-standing reliance on third-party proxy advisory services. The financial giant announced it will deploy an internal artificial intelligence solution to oversee all aspects of U.S. corporate voting, marking a significant departure from industry norms where firms typically depend on external advisers like Institutional Shareholder Services and Glass Lewis for guidance.

Proxy is Launching with Comprehensive Coverage

The bank is launching Proxy IQ, an innovative AI platform engineered to manage the complete voting lifecycle. The system will handle research aggregation, data analysis, and voting recommendations by processing information from over 3,000 corporate annual meetings. This in-house AI approach enables JPMorgan to leverage its proprietary data advantages and execute voting decisions that align directly with client interests rather than relying on standardized third-party frameworks.

Strategic Shift in Asset Management

Managing approximately $7 trillion in client assets, JPMorgan’s wealth management arm casts thousands of votes annually on corporate governance matters. The transition away from external advisers reflects growing frustration with how proxy firms operate. Regulators and policymakers have increasingly questioned whether third-party voting services push agendas that don’t necessarily serve investors’ best interests. The Trump administration’s recent focus on tightening oversight of the proxy advisory industry added pressure to the sector, prompting JPMorgan to accelerate its own strategic realignment.

Aligning with Broader AI Investment

This move fits seamlessly within JPMorgan’s larger artificial intelligence initiative. The bank has committed $18 billion to technology development, with CEO Jamie Dimon emphasizing the institution’s determination to maintain leadership in AI innovation. By bringing voting operations in-house, JPMorgan demonstrates how machine learning can enhance decision-making across core business functions while reducing dependency on external partners.

Implementation Timeline

The new system takes effect April 1, following a transition period in the first quarter that allows for testing and refinement. JPMorgan becomes the first major investment firm to completely eliminate reliance on third-party proxy advisers for U.S. voting decisions.

Market response to the announcement saw JPM stock close at $326.99, down 2.28%, with after-hours trading at $326.60, down 0.12% on the NYSE.

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