JPMorgan's asset management will no longer use controversial proxy advisors for shareholder votes

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JPMorgan

said its asset management division has fully parted ways with controversial proxy advisors for shareholder votes.

In an internal memo, the firm said it no longer needs third-party data collection or voting recommendations. Instead, it launched an artificial intelligence tool, Proxy IQ, to aggregate and analyze proxy data from 3,000 annual company meetings.

Proxy advisors such as Institutional Shareholder Services and Glass Lewis typically provide research and voting recommendations. JPMorgan said it is the first major investment firm to eliminate reliance on such companies. The Wall Street Journal first reported the news earlier Wednesday.