JPMorgan is ditching proxy advisors and turning to AI for shareholder votes (www.businessinsider.com)

JPMorgan's asset and wealth management unit is making a pivotal shift by abandoning external proxy advisors for shareholder vote decisions, opting instead for an in-house AI tool named Proxy IQ. This change marks JPMorgan as the first major investment firm to eliminate reliance on these advisory firms, which have faced scrutiny for their influence in the voting process. This strategic move, effective April 1, 2024, emphasizes JPMorgan's commitment to aligning voting decisions strictly with client interests, leveraging their information advantage without external biases. Proxy IQ is designed to enhance JPMorgan's voting process by aggregating and analyzing proprietary data from over 3,000 annual company meetings. The tool will ensure that the bank's portfolio managers, research analysts, and stewardship teams apply the same rigorous analysis they have typically used, further streamlining the decision-making workflow. With a technology budget of $18 billion, JPMorgan's shift to an AI-driven approach demonstrates its dedication to integrating advanced technology into its operations while navigating the changing landscape of proxy advisory relationships that have recently come under political scrutiny.