However, AI is steadily finding inroads into the operational core of financial services, reshaping how banks analyze information, make decisions and allocate human effort.
In the most recent example, reported Wednesday (Jan 7) across news outlets including The Wall Street Journal, JPMorgan decided to move away from traditional proxy advisory firms and rely instead on an internally built AI system, known as Proxy IQ.
The move is about shareholder voting, to be sure, but it also signals something larger across banking. AI is increasingly trusted to handle tasks that were once highly manual, externally sourced and deeply embedded in institutional workflows.
From Cognitive Banking to Operational AI
PYMNTS Intelligence has tracked this evolution under the banner of “cognitive banking,” a model in which AI sits atop permissioned data to shift banks from reactive problem solving to proactive guidance and insight. Rather than waiting for human prompts, cognitive systems infer intent, surface patterns and suggest next-best actions in real time.
This approach has already taken hold in areas such as customer engagement, fraud detection and internal knowledge management. Conversational AI tools are moving beyond simple Q&A to deliver context-aware analysis that speeds decision-making and frees staff from repetitive work.
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JPMorgan’s proxy voting move extends that logic into asset management and governance, an arena long dominated by manual review, external data gathering and third-party recommendations.
What Proxy Advisers Do and Why They Matter
Proxy advisory firms play a central role in asset management. They collect and analyze proxy statements from thousands of public companies, assess ballot items such as board elections and shareholder proposals, and issue voting recommendations to institutional investors. For large asset managers, this process helps scale governance decisions across sprawling portfolios, but it is also time-intensive and dependent on outside firms.
Traditionally, banks and asset managers rely on these advisers for guidance. That reliance introduces cost, latency and an additional layer between institutions and the underlying corporate information they are voting on.
According to JPMorgan’s internal memo discussed in media reports, the bank concluded it no longer needed third-party data collection or voting recommendations. Instead, its AI tool is designed to aggregate and analyze proxy data from roughly 3,000 annual company meetings, using machine-driven analysis rather than outsourced human review, CNBC reported Wednesday.
Cutting Out the Middleman, Speeding the Process
The immediate effect is the disintermediation of those advisers. On the other hand, by bringing proxy analysis in-house, JPMorgan reduces dependence on external advisers and shortens the time between information release and decision-making. AI systems can scan, classify and compare proxy disclosures at scale, a task that would otherwise require large teams and weeks of effort.
This mirrors a broader trend PYMNTS has documented across banking. AI is increasingly deployed where speed and scale matter, particularly in environments where decisions must be made repeatedly and consistently. In fraud prevention, for example, banks are shifting from retrospective reviews to real-time AI-driven defenses that intervene before funds move.
In asset management, faster analysis means portfolio managers and governance teams can focus more on judgment and policy alignment, rather than document processing and data reconciliation.
Efficiency Gains With Guardrails Still Required
The promise of AI-driven automation does not eliminate the need for oversight. Banking systems work best when paired with governance frameworks that ensure transparency, explainability and human accountability.
Proxy voting carries regulatory, fiduciary and reputational implications. While AI can surface patterns and flag inconsistencies, institutions must still define voting principles and retain responsibility for outcomes. JPMorgan’s move highlights that AI is not replacing governance, but rather reshaping how governance is executed.
Taken together, JPMorgan’s Proxy IQ initiative fits squarely within a wider industry shift. AI is moving from peripheral support tools to engines that reshape core banking functions, from fraud defense to asset management.
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