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JPMorgan Chase’s asset management division is moving away from external proxy advisory firms and will instead rely on a proprietary, artificial intelligence-driven platform to manage proxy voting and corporate meeting analysis for U.S. equities.

J.P. Morgan Asset & Wealth Management plans to deploy an internal tool known as Proxy IQ, which will gather and analyze data from more than 3,000 annual shareholder meetings held by publicly listed U.S. companies. The transition to the new system is expected to take place during the first quarter of 2026, according to internal guidance circulated within the firm.

Under the new approach, the asset manager will no longer depend on third-party providers for proxy vote data collection or voting recommendations in the United States. The firm said the move reflects its goal of exercising proxy voting authority based solely on what it determines to be in the best interests of its clients.

JPMorgan declined to comment publicly on the change.

The shift comes as proxy advisory firms face growing political and regulatory scrutiny. Companies such as Institutional Shareholder Services and Glass Lewis have long played a dominant role in shaping how institutional investors vote on corporate governance matters.

Critics, particularly Republican lawmakers and several state officials, have accused the firms of exerting outsized influence over shareholder votes and promoting non-financial priorities. Those concerns have intensified in recent months following actions by the Trump administration and several state attorneys general.

Last month, President Donald Trump issued an executive order directing federal agencies to examine the role and market power of proxy advisers, citing concerns over their influence on corporate decision-making and investment outcomes. The order argued that proxy firms often promote environmental, social, and governance-related priorities rather than focusing exclusively on shareholder value.

Florida filed a lawsuit late last year alleging that major proxy advisory firms misuse their market position by advancing ideological and environmental objectives at the expense of traditional financial considerations. Separately, the Texas attorney general opened an investigation into similar claims, asserting that institutional investors and public companies may have been misled.

The firms have previously rejected allegations that their recommendations are politically motivated. Glass Lewis has said it evaluates shareholder proposals individually, while ISS has indicated it will apply a case-by-case approach to supporting diversity and climate-related proposals beginning in 2026.

JPMorgan’s move to internalize proxy analysis through artificial intelligence marks a significant shift for the asset management industry, where reliance on third-party advisory firms has long been standard practice. The decision could signal a broader trend among large investment managers seeking greater control over governance decisions amid heightened regulatory and political attention.