JPMorgan Chase Ends Use of Proxy Advisors, Launches AI Voting Tool

JPMorgan Chase & Co. has announced that its asset management division will no longer utilize external proxy advisory firms for managing shareholder votes in the United States. This decision, described as an industry first, is part of a broader strategy to rely on an in-house artificial intelligence platform named Proxy IQ. This tool will aggregate and analyze data from over 3,000 annual company meetings, effectively eliminating the need for third-party data collection and voting recommendations.

JPMorgan Drops Proxy Advisers in U.S.RTTNewsJPMorgan Replaces Proxy Advisors with New Internal AI PlatformCNBCReuters

Proxy advisory firms, such as Institutional Shareholder Services (ISS) and Glass Lewis, have traditionally played a significant role in corporate governance by providing research and voting recommendations to institutional investors. However, these firms have faced increasing scrutiny from conservative voices and business leaders who argue that they often prioritize climate and social issues over shareholder interests. This criticism has intensified following an executive order signed by former President Donald Trump in December 2025, which called for increased oversight of the proxy advisory industry, accusing these firms of advancing politically motivated agendas.

ReutersJPMorgan drops proxy advisers, turns to AI voting toolJPMorgan Replaces Proxy Advisors with New Internal AI PlatformJPMorgan Drops Proxy Advisers in U.S.CityLab

Jamie Dimon, CEO of JPMorgan Chase, has been a vocal critic of proxy advisors, expressing concerns about their influence on shareholder elections. Tesla CEO Elon Musk has also criticized these firms, labeling them as "corporate terrorists." Both leaders have highlighted the need for a shift in how corporate governance is approached, particularly regarding the recommendations made by proxy advisors.

CNBCReutersJPMorgan drops proxy advisers, turns to AI voting toolJPMorgan Drops Proxy Advisers in U.S.CityLab

In an internal memo, JPMorgan stated that the transition to Proxy IQ reflects its commitment to voting solely in the best interests of its clients. A spokesperson for ISS responded by affirming their dedication to providing independent and high-quality governance research and recommendations, indicating that they would continue to serve the institutional investor community.

Reuters

Despite JPMorgan's assertion that the change will enhance its governance practices, critics argue that this move could undermine shareholder rights. Corporate governance analysts have expressed concerns that the elimination of third-party advisory services may limit the diversity of perspectives in shareholder voting processes. Additionally, the executive order from the Trump administration has been criticized for potentially stifling shareholder activism and engagement.

CityLab

The implementation of Proxy IQ is set to take effect on April 1, 2026, following a transition period in the first quarter of the year. As JPMorgan Chase embarks on this new approach, the broader implications for corporate governance and the role of proxy advisory firms will continue to unfold, particularly in light of ongoing political scrutiny and evolving market dynamics.

JPMorgan Drops Proxy Advisers in U.S.

• “We are proud of our four-decade record serving the global institutional investor community with independent and high-quality governance research, recommendations, and voting solutions, and will continue to do so,” — ISS Spokesperson

Reuters

• “regularly use their substantial power to advance and prioritize radical politically-motivated agendas.” — Donald Trump, Former President

CNBC

• “The company will now depend on Proxy IQ, a newly introduced AI-powered in-house tool.” — JPMorgan Internal Memo

JPMorgan Drops Proxy Advisers in U.S.

This strategic shift by JPMorgan Chase marks a significant development in the landscape of corporate governance, reflecting ongoing tensions between traditional advisory practices and emerging technological solutions.

JPMorgan Drops Proxy Advisers in U.S.