Let’s Foster "Japan-made AI" Instead of ChatGPT... Sakana AI Aims to Expand to 100,000 Companies in Japan

Sumitomo Corporation, SCSK, and Sakana AI Form Strategic Alliance
Expanding Adoption of "Japan-Made AI" Leveraging Sumitomo's Client Network

Sumitomo Corporation, Japan's leading general trading company, and artificial intelligence (AI) development firm Sakana AI have formed a partnership to promote the use of "Japan-made generative AI." Amid concerns over the risk of corporate confidential information leaks and limitations in using overseas generative AI due to Japan’s unique language and work environment, the companies plan to expand their market reach by leveraging a customer network that covers up to 100,000 businesses.

On September 10, the Nihon Keizai Shimbun (Nikkei) reported that Sumitomo Corporation and its system development subsidiary SCSK have entered into a business alliance with Sakana AI. Under this agreement, Sakana AI will be responsible for AI model development, design, and application (app) development, while SCSK will handle organizing customer company data and integrating with existing systems. Sumitomo Corporation also plans to connect domestic and overseas clients and to promote the use of AI in social infrastructure sectors such as urban development through its business operations.

The three companies will initially target customers with strict security and reliability requirements, focusing on sectors such as finance and manufacturing. According to Nikkei, their plan is to start with large enterprises and gradually expand service adoption to medium-sized and small businesses.

Logo of the Japanese artificial intelligence (AI) startup Sakana AI. Since 'Sakana' means 'fish' in Japanese, the logo prominently features fish. Sakana AI.

As the number of client companies increases, the partners also intend to develop security services that diagnose and support correction of system and software (SW) vulnerabilities. Furthermore, they will continue to collaborate on developing AI services tailored to the unique demands and work needs of individual companies. It is also reported that Sakana AI's technology will be incorporated into the integrated enterprise resource planning (ERP) and security products sold by SCSK.

Sakana AI, a homegrown Japanese AI company, is renowned for its advanced AI development capabilities, which are considered on par with leading overseas models. In June, the company released "Sakana Fugu," a solution that combines multiple AIs to deliver optimal results.

Nikkei also noted that this alliance is driven by hopes of reducing dependence on foreign AI and encouraging Japanese companies to use Japan-made generative AI. Nikkei pointed out, "Work innovation using AI at Japanese companies is lagging behind other countries such as the United States and China." According to Japan’s Ministry of Internal Affairs and Communications, only 54% of Japanese companies are leveraging generative AI for work innovation, which is lower than the United States (76%), Germany (69%), and China (73%).

In particular, when generative AI is used for work, there is a risk that AI could access internal confidential information, so Japanese companies have been concerned about information leaks and security. Nikkei added that even when Japanese firms adopt foreign generative AI, there have been cases where it failed to fully address the unique Japanese language environment and work customs, leading to less-than-expected results.

Additionally, the growing economic security concerns surrounding AI are further supporting the spread of Japan-made AI. Recently, after the U.S. government restricted foreign users from accessing Anthropic’s "Claude Mutos," fears have risen in Japan that there is no guarantee Japanese users can always access advanced AI developed by overseas companies. Nikkei stated, "The three companies aim to support improved work efficiency through AI," and "Their goal is to provide a seamless experience covering every process from system design and implementation to operation using AI."

This content was produced with the assistance of AI translation services.