JPMorgan is ditching proxy advisors and turning to AI for shareholder votes in the US

Core Viewpoint - JPMorgan's asset and wealth management division is eliminating reliance on external proxy advisors for shareholder voting decisions, marking a significant shift in its voting process [1][7]. Group 1: Changes in Proxy Voting Process - The changes to the U.S. proxy-voting process will be fully implemented on April 1, following a transition period in the first quarter of the year [2]. - JPMorgan's asset management division manages $7 trillion in client assets, influencing numerous shareholder decisions beyond financial matters [3]. Group 2: Reasons for Change - The decision to move away from proxy advisors is partly in response to criticism from the Trump administration, which called for increased oversight of the proxy advisor industry [3][4]. - JPMorgan aims to reinforce its commitment to act solely in clients' best interests by utilizing its own information advantage rather than relying on external advisors [4]. Group 3: Introduction of In-House AI Tool - In place of external advisors, JPMorgan is launching an in-house AI platform named Proxy IQ to assist in shareholder voting decisions [4][7]. - Proxy IQ will provide independent analysis and cover all aspects of the voting process, including data and research selection [5]. - The tool is designed to aggregate and analyze proprietary data from over 3,000 annual company meetings [5]. Group 4: Technology Investment - JPMorgan has allocated a technology budget of $18 billion, with CEO Jamie Dimon emphasizing the importance of winning the AI arms race [6].