JPMorgan Chase’s (JPM) asset management arm is abandoning proxy-advisory firms and will rely on an in-house artificial-intelligence system, called Proxy IQ, to assist on U.S. company votes, according to a media report on Wednesday.
The internal AI platform will take over vote administration and data analysis for over 3K annual shareholders meetings, the Wall Street Journal reported, citing an internal memo.
Major U.S. banks are increasingly exploring and deploying AI across operational processes, from productivity tools to risk and compliance analytics. Bank of America (BAC), for example, uses AI to help employees draft client materials and optimize contact-center assistance, freeing up time for higher-value tasks.
JPMorgan (JPM) has previously said it would strip proxy adviser recommendations from its voting systems, and the latest change goes further by removing the advisers’ role in administering votes altogether.
Proxy firms like Glass, Lewis & Co. assess corporate proposals and make voting recommendations to institutional investors on various issues like board elections and shareholder resolutions. Many also offer research and data that help investors track their proxy votes, and AI is starting to reduce reliance on these third-party services.
JPMorgan (JPM) did not immediately respond to Seeking Alpha’s request for comment.