Hitachi and Microsoft Enter Milestone Agreement to Accelerate Social Innovation with Generative AI
Hitachi, Ltd. (TSE:6501) and Microsoft Corporation have announced a groundbreaking multi-billion dollar collaboration that is set to take place over the next three years. This collaboration aims to accelerate social innovation through the use of generative AI. The strategic alliance between the two tech giants will see Hitachi driving growth in the Lumada business, with a projected revenue of 2.65 trillion yen (18.9 billion USD) by FY2024. This partnership will also focus on enhancing operational efficiency and productivity for Hitachi Group’s 270 thousand employees.
Accelerating Innovation with Azure and Microsoft Solutions
As part of the agreement, Hitachi will integrate various Microsoft solutions including the Azure cloud, Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot into Lumada solutions. These integrations will enable Hitachi to offer innovative solutions for industries such as energy and mobility, ultimately delivering better outcomes for businesses and society. The collaboration will also involve joint projects to address critical business needs such as cloud services enhancement, security reinforcement, and reducing the environmental impact of data centers, which has become a growing concern with the rise of generative AI.
Driving Transformation and Social Innovation
Hitachi's commitment to driving transformation through AI applications across the group is evident in the planned investment of 300 billion yen (2.1 billion USD) in GenAI by FY2024. The collaboration between Hitachi and Microsoft has already yielded fruitful co-creation projects, including the development of next-generation digital solutions for manufacturing and logistics, as well as a field-extended metaverse running on Microsoft Teams. This new agreement signifies a deeper commitment to accelerating social innovation by expanding efforts into areas such as energy and mobility, applying generative AI to enhance frontline worker productivity, and addressing key challenges faced by customers and society.
Empowering Every Industry with Generative AI
Hitachi's Generative AI Center will collaborate with Microsoft to boost operational efficiency and application development within the Hitachi Group. By leveraging technologies such as Copilot for Microsoft 365 and GitHub Copilot, Hitachi aims to enhance its customer service standards. The incorporation of Azure OpenAI Service will further strengthen Hitachi's capabilities in mission-critical system development, ensuring high quality and improved productivity. Hitachi Rail is also harnessing GenAI for predictive maintenance, leading to enhanced equipment monitoring, increased service quality, cost reduction, and improved safety measures.
Enhancing Lumada Solutions with Microsoft Partnerships
Hitachi is continuously enhancing its Lumada solutions by integrating generative AI capabilities into its offerings. The collaboration with Microsoft has already shown promising results, such as the use of Microsoft’s Generative AI for JP1 Cloud Services, which has significantly improved response times and operational efficiencies for IT departments and financial institutions. Additionally, Hitachi and Microsoft are working together to support the energy transition by providing digital solutions for asset performance management, energy trading, and risk management to optimize energy networks and deliver sustainable energy to customers.
Promoting Sustainable Growth and Talent Development
This milestone agreement also includes joint projects aimed at enhancing digital engineering, IT services, and application services within the Hitachi Group. The focus is on sustainable innovation and reducing the environmental impact of AI emissions. Hitachi is committed to training over 50 thousand GenAI Professionals as part of the collaboration, empowering them with advanced software development skills using GitHub Copilot and Azure OpenAI Service to drive customer transformation using AI.
About Hitachi, Ltd.
Hitachi drives Social Innovation Business by leveraging data and technology to create a sustainable society. The company operates under three business sectors: Digital Systems & Services, Green Energy & Mobility, and Connective Industries, aiming for growth through co-creation with customers. With revenues totaling 8,564.3 billion yen for fiscal year 2023, Hitachi continues to make a significant impact through its innovative solutions. For more information, visit https://www.hitachi.com.
About Microsoft Corporation
Microsoft creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of customers. The company is committed to making AI available broadly and responsibly, with a mission to empower every individual and organization to achieve more. Learn more about Microsoft at businesswire.com.
