In recent years, Japanese corporations have been making significant strides in leveraging AI technologies to drive digital transformation (DX) and create innovative business models.
AI Strategica has delved into the strategic directions of major Japanese corporations as they enter the AI era, examining their approaches and anticipated outcomes in the AI and DX landscape.
NEC: BluStellar
NEC’s BluStellar initiative, launched in May 2024, focuses on providing AI-driven solutions for customer challenges rather than traditional sales approaches. BluStellar is designed to integrate NEC’s AI technologies with customer needs, offering tailored solutions across various industries. NEC aims to expand BluStellar’s reach, potentially incorporating more advanced AI capabilities and exploring new market segments.
For instance, NEC partnered with Japan Airlines (JAL) to test an AI-powered carry-on baggage analysis solution at Haneda Airport, as we previously reported. This system uses AI to collect and analyze data on baggage amounts and alert frequency, helping to prevent departure delays and improve boarding efficiency.
The trial’s success demonstrates BluStellar’s potential to transform business operations across industries, showcasing NEC’s commitment to leveraging digital technology for enhancing customer experiences and operational efficiency.
Mitsubishi Electric: Serendie
Serendie, introduced by Mitsubishi Electric in May 2024, emphasizes problem-solving through AI applications. The platform likely combines Mitsubishi’s expertise in electronics and AI to address complex industrial challenges. Mitsubishi Electric may focus on enhancing Serendie’s capabilities in sectors like manufacturing and energy management.
Serendie, a portmanteau of “serendipity” and “digital engineering”, is designed to:
- Facilitate unprecedented interactions between devices, systems, and services across various fields.
- Aggregate and analyze data from diverse sources to generate new insights and solutions.
- Enable co-creation initiatives with customers and partners
Serendie represents Mitsubishi Electric’s commitment to leveraging digital technology and AI to address societal issues and create sustainable value in the rapidly evolving business environment. Mitsubishi Electric is leveraging Serendie in several key domains:
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Energy Management: The platform is being utilized in heat-related total solutions, optimizing electricity and heat usage.
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Manufacturing: Serendie likely plays a role in enhancing production processes and efficiency.
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Sustainability: The platform aligns with Mitsubishi’s focus on carbon neutrality, circular economy, and other sustainability goals
KDDI: WAKONX
KDDI recently launched WAKONX on June, 2024 as a new business platform for the AI era. This initiative aims to accelerate the resolution of social and industry issues while driving business growth for Japanese companies.
WAKONX provides a comprehensive suite of AI-embedded services and solutions optimized for various industries, including the design and construction of optimal networks, as well as the accumulation, integration, and analysis of inter-company data over large-scale computing infrastructure.
KDDI is leveraging its network and infrastructure platforms to build added value in AI and digital technologies. The company is focusing on three key domains:
Digital transformation (DX), Finance, and Energy.
Through WAKONX, KDDI aims to support digital transformation in small and medium enterprises and local governments, expanding its customer touchpoints. One concrete example of WAKONX’s application is in the mobility domain, where KDDI is promoting problem-solving through this business platform.
Additionally, KDDI has partnered with Lawson to create new consumer value by integrating digital, real-world, and green elements into Lawson’s convenience store business, using AI- and DX-driven assistance.
Toyota: O-beya
Toyota’s transformation into a mobility company is exemplified by its “O-Beya” initiative, launched in 2024. This system of generative AI agents aims to accelerate vehicle development by harnessing collective engineering wisdom.
O-Beya currently features nine specialized AI agents, from Vibration to Fuel Consumption, that collaborate to answer complex engineering queries.
Additionally, Toyota has partnered with NTT in a $3.3 billion joint venture to advance AI applications for autonomous driving by 2030. This initiative focuses on connecting vehicles, people, and infrastructure to achieve “zero traffic accidents”.
Toyota is also constructing the 175-acre “Woven City” at the base of Mount Fuji, designed as a living laboratory for future technologies. This smart city will test AI, robotics, and autonomous vehicles in a real-world setting, accommodating up to 2,000 residents and serving as a prototype for future urban environments.
Hitachi
Hitachi is actively leveraging its industrial expertise to develop AI solutions across various sectors. In collaboration with Singtel, Hitachi Digital is deploying the Paragon platform at its Santa Clara R&D Labs, followed by a pilot in a U.S. factory. This initiative focuses on integrating Hitachi’s AI applications for quality assurance, workplace safety, and predictive maintenance. The goal is to enhance operational efficiency in manufacturing through advanced AI technologies.
Looking ahead, Hitachi aims to establish itself as a global leader in industrial AI solutions, driving innovation in manufacturing, energy, and smart infrastructure.
Softbank
SoftBank’s $500 million investment in OpenAI in 2024 exemplifies its aggressive AI strategy. The company views OpenAI’s ChatGPT, with 250 million weekly active users and 11 million subscribers, as a leader in AI capabilities.
SoftBank is also investing in other AI-driven companies like Glean, an enterprise AI search firm, and Poolside, which develops generative AI tools for software development. These investments align with SoftBank’s vision of AI as a transformative force across industries.
Emerging Trends and Future Outlook
The initiatives by NEC, Mitsubishi Electric, and KDDI, along with ongoing efforts by other major Japanese corporations, signify a shift towards more customer-centric, AI-driven business models. These companies are moving beyond traditional product sales to offer comprehensive solutions that address specific customer challenges.
As Japan faces challenges such as an aging population and labor shortages, AI is expected to play a crucial role in enhancing productivity and efficiency across various industries. The focus on problem-solving rather than mere technology implementation suggests a maturing approach to AI adoption in Japanese businesses.
Looking ahead to 2025, we can anticipate:
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Increased collaboration between AI providers and industry-specific experts
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More tailored AI solutions for Japanese market needs
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Expansion of AI applications beyond traditional tech sectors into areas like healthcare and public services
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Growing emphasis on ethical AI and data privacy in line with Japanese cultural values
As these initiatives progress, Japanese companies are poised to create unique AI-driven business models that could set new standards for global markets, particularly in areas where Japan has traditional strengths such as manufacturing, robotics, and customer service.
Just as a new sun rises in 2025, the world of AI is also moving toward the new horizons of this upcoming year!
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