Core Viewpoint - JPMorgan Chase is significantly increasing its spending on technology and artificial intelligence to remain competitive against both traditional banks and fintech companies, with a focus on long-term growth rather than short-term expense targets [1][2][3]. Spending Strategy - JPMorgan plans to spend approximately $9.7 billion more in 2026 compared to 2025, reflecting a commitment to investing in technology and AI [2]. - The annual technology budget for JPMorgan is around $18 billion, indicating a substantial investment in tech initiatives [5]. Competitive Landscape - CEO Jamie Dimon emphasized that JPMorgan is not only competing with traditional Wall Street rivals but also with fintech companies like Stripe, SoFi, and Revolut, which he acknowledged as strong competitors [2]. - The bank's strategy includes developing an in-house AI platform, Proxy IQ, to replace external proxy advisors for shareholder voting, showcasing its commitment to leveraging technology for operational efficiency [4]. Future Outlook - Dimon sees significant opportunities in AI and believes that increased spending is essential for the bank's growth, despite concerns about the scale of expenditures [3]. - While AI spending is expected to increase, Dimon noted that it is not the primary driver of overall expenditure growth, but rather a component of a broader investment strategy aimed at enhancing efficiency and competitiveness [4].

Core Viewpoint - JPMorgan Chase is significantly increasing its spending on technology and artificial intelligence (AI) to remain competitive against both traditional banks and fintech companies, with a projected increase of approximately $9.7 billion in spending from 2025 to 2026 [2][4]. Group 1: Spending Strategy - CEO Jamie Dimon emphasized the importance of substantial spending to avoid being left behind in the competitive landscape, stating that the bank will not adhere to a strict expense target [2][3]. - The bank's annual technology budget is around $18 billion, which supports its initiatives in AI and other technologies [2]. - Dimon indicated that while AI spending is increasing, it is not the primary driver of overall expenditure growth, but it is expected to enhance future efficiency [4]. Group 2: AI Implementation and Training - JPMorgan is actively training tens of thousands of employees on how to effectively use AI tools in their daily tasks, indicating a strong commitment to integrating AI into its operations [5]. - The bank is launching an in-house AI platform, Proxy IQ, to replace external proxy advisors for shareholder voting, showcasing its focus on leveraging AI for operational improvements [4]. Group 3: Competitive Landscape - The competition for AI talent is intensifying, with banks, hedge funds, and Big Tech vying for specialists in the field, highlighting the strategic importance of AI in the financial sector [6]. - Experts predict that 2026 will be a pivotal year for AI in banking, as its adoption becomes more widespread and roles within the industry undergo significant changes [6].

Core Viewpoint - JPMorgan Chase has decided to discontinue its reliance on third-party proxy advisory firms, opting for an in-house artificial intelligence solution to enhance efficiency and customization in proxy voting [1][5]. Group 1: Proxy Advisory Industry Context - Proxy advisors like Institutional Shareholder Services (ISS) and Glass Lewis have historically guided institutional investors on corporate governance matters, influencing trillions in investments [2]. - The proxy advisory industry is under scrutiny, with the Federal Trade Commission (FTC) investigating potential anticompetitive practices and conflicts of interest due to market concentration [4]. Group 2: JPMorgan's Strategic Shift - CEO Jamie Dimon has criticized proxy advisors for their "one-size-fits-all" approaches, which often overlook company-specific contexts [3]. - JPMorgan's move to internalize proxy voting processes is seen as a pioneering step, making it the first major investment bank to sever ties with external proxy services [5]. Group 3: Proxy IQ and AI Implementation - JPMorgan is developing Proxy IQ, a custom-built AI platform designed to manage the proxy voting process and analyze data from over 3,000 corporate meetings annually [6]. - The AI platform utilizes machine learning algorithms to process complex governance documents and financial reports, providing real-time recommendations tailored to JPMorgan's investment strategies [7]. Group 4: Industry Implications and Future Trends - The shift towards in-house AI solutions may prompt other financial institutions to reassess their reliance on external proxy advisory services, potentially disrupting the $2 billion proxy advisory market [9]. - This transition reflects a broader trend in finance where AI is increasingly used to enhance operations, reduce costs, and minimize biases associated with external firms [8].

Core Viewpoint - JPMorgan Chase's asset-management unit is severing ties with proxy-advisory firms and will implement an internal AI-driven platform named Proxy IQ for U.S. company votes in the upcoming proxy season [1] Group 1 - The asset-management unit of JPMorgan Chase manages over $7 trillion in client assets, making it one of the largest investment firms globally [1] - The decision to cut ties with proxy-advisory firms is effective immediately [1] - Proxy IQ will be utilized to assist in voting on U.S. companies during the upcoming proxy season [1]

Core Viewpoint - JPMorgan Chase's asset-management division has decided to end its relationship with proxy advisory firms and will now manage shareholder voting internally using AI technology, amid increasing regulatory scrutiny in the proxy advisory sector [1][3]. Group 1: Decision and Implementation - The decision to move away from external proxy advisers is effective immediately and reflects a shift towards internal management of shareholder voting [1]. - JPMorgan's asset-management unit, which oversees assets exceeding $7 trillion, will utilize an internally developed AI platform named Proxy IQ to manage and analyze voting at over 3,000 annual meetings [2]. Group 2: Industry Context - JPMorgan is the first major investment firm to completely eliminate the use of outside proxy advisers, which typically assist with research and logistical support for voting decisions [3]. - The firm had previously indicated a reduction in reliance on proxy advisers for recommendations but now intends to depend solely on its internal stewardship team and technology [3]. Group 3: Regulatory Environment - The proxy advisory sector is facing increased regulatory scrutiny, highlighted by a December executive order from the Trump administration calling for a review of proxy adviser practices [4]. - Following these regulatory developments, proxy advisory firms like Institutional Shareholder Services (ISS) and Glass Lewis have made statements regarding their roles, with ISS asserting that it does not determine corporate governance standards [5].

Core Viewpoint - JPMorgan Chase's asset-management division has decided to end its relationship with proxy advisory firms and will now manage shareholder voting internally using AI technology, amidst increasing regulatory scrutiny in the proxy advisory sector [1][3]. Group 1: Company Actions - The asset-management unit will utilize an internally developed AI platform named Proxy IQ to manage and analyze voting at over 3,000 annual meetings of US companies [2]. - JPMorgan is the first major investment firm to completely eliminate the use of external proxy advisers, opting to rely solely on its internal stewardship team and technology for voting decisions [3]. Group 2: Industry Context - Proxy advisory firms like Institutional Shareholder Services (ISS) and Glass Lewis assist investment institutions with proxy voting complexities [4]. - Recent regulatory developments have prompted ISS to clarify that it does not set corporate governance standards, allowing clients to retain full discretion over their decisions [5]. - Glass Lewis has announced plans to cease offering widely distributed benchmark recommendations by 2027, shifting focus to tailored advice for individual clients [5].

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].

Core Viewpoint - JPMorgan Asset Management has severed ties with proxy advisory firms ISS and Glass Lewis, opting to use its own AI-driven voting platform, Proxy IQ, marking a significant shift in shareholder power dynamics [1][3]. Group 1: JPMorgan's Strategic Move - JPMorgan Asset Management manages over $7 trillion in client assets and is the first major asset manager to rely solely on an internal voting platform [1]. - CEO Jamie Dimon has criticized proxy advisers as "incompetent" and has declared their dominance as "done with," indicating a challenge to the existing proxy advisory system [2][3]. - The decision to replace external advisers with an internal platform allows JPMorgan to control the shareholder voting process, which it previously condemned [4]. Group 2: Political and Regulatory Context - The move follows an executive order from President Trump, which directs federal agencies to investigate proxy advisers due to concerns over their influence being driven by political agendas rather than fiduciary duties [2]. - This combination of political and financial pressure from both Trump and JPMorgan represents a significant challenge to the proxy advisory industry [2]. Group 3: Broader Industry Implications - The shift towards a more decentralized and digitally engaged electorate is part of a broader trend toward democratization in investing, allowing individual investors to have real-time access to voting [4]. - The upcoming proxy season may see individual investors playing a more significant role, potentially overshadowing traditional activist campaigns and institutional influences [5]. - Other companies, like ExxonMobil, are also adapting to elevate individual investors, reflecting a growing trend in the industry [6].

Market Overview - The U.S. stock market opened mixed with the Dow Jones up by 0.24%, S&P 500 up by 0.06%, and Nasdaq down by 0.04% [1] - Most popular Chinese stocks declined, with the Nasdaq China Golden Dragon Index down by 0.51%, and companies like NetEase and Alibaba falling over 2%, while JD.com and Pinduoduo dropped over 1% [1] - Gold and silver stocks retreated, with Hecla Mining and First Majestic Silver down over 5%, and Pan American Silver and Golden Valley down over 4% [1] Company News - Nvidia and Lenovo announced a collaboration to launch an "AI Cloud Super Factory" during CES 2026, utilizing Nvidia's latest Vera Rubin technology to significantly reduce AI deployment time for cloud service providers and scale up to 100,000 GPUs [2] - JPMorgan Chase's asset management division has cut ties with all proxy advisory firms and will use its internal AI platform "Proxy IQ" for decision-making during the upcoming proxy season [3] - Chevron has mobilized a fleet of 11 oil tankers to Venezuela, becoming the only Western oil exporter allowed to operate in the country, with plans to exceed last month's oil exports [4] - Berkshire Hathaway has raised the salary of new CEO Greg Abel to $25 million, significantly higher than Warren Buffett's long-standing $100,000 annual salary [5] - GameStop has granted CEO Ryan Cohen long-term performance incentives, including options to purchase 171.5 million shares, aimed at driving the company's market value to $100 billion [6] - Analyst Ming-Chi Kuo reported that Nvidia's VR200 NVL72 will utilize microchannel cold plates for cooling, with liquid flow rates potentially increasing by 100% compared to previous models [7]

Core Viewpoint - JPMorgan Chase & Co. has fully severed ties with controversial proxy advisors for shareholder votes, marking a significant shift in its asset management strategy [1][3]. Group 1: Company Actions - The firm announced in an internal memo that it no longer requires third-party data collection or voting recommendations [2]. - JPMorgan has introduced an artificial intelligence tool named Proxy IQ, designed to aggregate and analyze proxy data from 3,000 annual company meetings [2]. Group 2: Industry Context - Proxy advisors like Institutional Shareholder Services and Glass Lewis typically provide research and voting recommendations, but JPMorgan claims to be the first major investment firm to eliminate reliance on these entities [3]. - The decision comes amid criticism of proxy advisors, including remarks from President Donald Trump and Tesla CEO Elon Musk, who have both expressed concerns over the influence of these advisors on corporate governance [4].