JPMorgan Chase is shifting its approach to shareholder voting by eliminating its reliance on external proxy advisory firms and instead using an in‑house artificial intelligence tool to guide proxy decisions on U.S. company shares. This marks a notable change in how one of Wall Street’s largest asset managers handles corporate governance participation.
Proxy advisory firms such as Institutional Shareholder Services (ISS) and Glass Lewis have traditionally provided research and voting recommendations to institutional investors on matters ranging from board elections and executive compensation to environmental, social and governance (ESG) proposals. These services have played a central role in proxy seasons, influencing how shareholders with large portfolios cast votes. JPMorgan’s decision effectively ends its use of these third‑party firms for U.S. proxy voting.
The bank’s asset‑management division will instead implement a proprietary AI‑based platform called “Proxy IQ,” which aggregates and analyzes data from thousands of annual shareholder meetings. According to company communications first reported by Morning Brew and other outlets, JPMorgan says Proxy IQ can perform the core functions of external advisers — such as synthesizing meeting data and producing voting support information — drawing on its own internal datasets. The transition is expected to be completed in early 2026.
JPMorgan’s move positions it as the first major investment firm to fully end its use of external proxy advisers for U.S. voting decisions. CEO Jamie Dimon has previously criticized proxy advisory firms, and the trend away from third parties occurs amid broad political and regulatory scrutiny of the proxy advisory industry. For example, a 2025 executive order directed U.S. agencies to examine proxy adviser practices and whether their recommendations align with investors’ best interests.
Supporters within the bank argue that in‑house AI gives JPMorgan greater control over voting logic and aligns decision‑making more closely with client mandates. However, critics of such shifts have noted that removing external advice could reduce transparency and eliminate an independent governance check — especially for smaller institutional holders that lack extensive internal research resources.
The implications of this strategic pivot will be watched closely across capital markets as the 2026 proxy season progresses. JPMorgan’s approach reflects broader trends toward AI integration in financial services, and may reshape how major investors engage in corporate governance. The Business Time
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