NEW YORK CITY (dpa-AFX) - JPMorgan's (JPM) asset and wealth management arm is ending its use of external proxy advisory firms for U.S. shareholder votes and replacing them with an internal artificial intelligence platform.
In an internal memo, the bank said it will become the first major investment firm to fully cut reliance on third-party proxy advisers for U.S. voting. The new approach will take effect on April 1, following a transition period in the first quarter.
The division oversees about $7 trillion in client assets and casts votes on thousands of corporate matters each year, a process that traditionally depends on firms such as Institutional Shareholder Services and Glass Lewis for research and recommendations.
The shift comes as proxy advisers face growing political scrutiny. In December, the Trump administration issued an executive order calling for tighter oversight of the industry, accusing proxy firms of using their influence to push politically driven agendas.
JPMorgan said the change reflects its commitment to vote solely in clients' best interests and to rely on its own information advantage. To support the overhaul, the bank is launching Proxy IQ, an in-house AI system designed to handle every stage of the voting process, from data gathering and research selection to final recommendations.
According to the memo, Proxy IQ will aggregate and analyse proprietary information from more than 3,000 company annual meetings. The move aligns with JPMorgan's broader push into artificial intelligence, backed by an $18 billion technology budget and CEO Jamie Dimon's stated ambition to lead the AI race.
Wednesday, JPM closed at $326.99, down 2.28%, and is currently trading after hours at $326.60, down 0.12%, on the NYSE.
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