Why JPMorgan Is Building Its Own AI Brain for Voting Instead of Hiring External Advisors

The Shift Away from Proxy Advisory Firms

The landscape of shareholder voting is undergoing a significant transformation. JPMorgan Asset and Wealth Management, which oversees $7 trillion in client assets, has made a bold decision to cut ties with external proxy advisory firms—companies like Institutional Shareholder Services (ISS) and Glass Lewis that have traditionally guided investment decisions on corporate governance matters. This marks a watershed moment in how major financial institutions approach voting on thousands of shareholder resolutions annually.

The transition reflects both technological confidence and evolving regulatory pressure. The Trump administration’s December executive order criticized proxy advisors for allegedly promoting “extreme, politically driven agendas,” intensifying scrutiny of an industry practice that has been standard across Wall Street for decades.

Enter Proxy IQ: An Internally Developed AI System

Rather than outsourcing voting guidance, JPMorgan is deploying Proxy IQ, an artificial intelligence platform engineered internally to manage the complete voting pipeline. The system represents the bank’s commitment to what it calls “voting exclusively in the best interests of our clients, leveraging our own informational strengths.”

According to JPMorgan’s internal communications, Proxy IQ will handle every component of the voting process—from data collection and analysis to final voting decisions. The platform can process proprietary intelligence from over 3,000 annual corporate shareholder meetings, drawing on JPMorgan’s portfolio managers, research analysts, and stewardship expertise rather than relying on external recommendations.

Scale and Investment Behind the Move

The rollout begins April 1, following a transition period in Q1. This isn’t a marginal tech upgrade; it reflects JPMorgan’s broader strategic bet on artificial intelligence. CEO Jamie Dimon has signaled the organization’s ambition to lead in AI innovation, backed by an $18 billion technology investment allocation. The decision to build proprietary AI capabilities for voting decisions demonstrates how seriously the institution is treating algorithmic decision-making—applying similar rigor to what one might expect from AI systems designed with intelligence comparable to evaluating complex strategic decisions.

What This Means for the Industry

JPMorgan’s move signals a potential trend: major asset managers may increasingly build internal AI systems rather than depend on external proxy advisors. The arrangement sidesteps concerns about advisor influence while allowing institutions to embed their own investment philosophies directly into algorithmic frameworks.

The two major proxy advisory firms affected by JPMorgan’s departure did not respond to inquiries about the bank’s strategic shift, leaving their own positioning in an uncertain competitive landscape.