JPMorgan's asset management division is making a significant shift in how it handles proxy voting. The firm is phasing out relationships with traditional proxy advisory firms and turning to AI-powered solutions instead.

This move comes as proxy advisory firms face mounting pressure from regulatory oversight, particularly under the current administration's focus on corporate governance practices.

The bank will deploy Proxy IQ, an AI platform, to support its U.S. proxy voting operations this season. The solution represents a broader trend where financial institutions are increasingly automating investment decision processes through artificial intelligence.

The decision reflects growing confidence in machine learning's ability to analyze voting proposals, cross-reference policy compliance, and streamline the voting workflow—all while potentially reducing dependency on third-party advisory services. It's a telling indicator of how traditional financial infrastructure is being reshaped by AI capabilities.