Table of Contents
- Introduction
- Collaboration for Growth and Productivity
- Social Innovation and Generative AI
- The Power of the Microsoft Cloud
- Hitachi’s Business Transformation with Generative AI
- Innovative Digital Solutions with Generative AI
- Promoting Sustainable Growth
- Strengthening Digital Skilling and Talent Development
- Conclusion
Introduction
Hitachi, Ltd. (TSE:6501) and Microsoft Corporation have entered into a milestone agreement to accelerate business and social innovation with generative AI. This projected multi-billion-dollar strategic partnership is set to span over three years and aims to create innovative industry solutions that deliver transformative outcomes for businesses and society. The partnership will focus on integrating Microsoft’s cloud services and AI tools into Hitachi’s Lumada Solutions, with the goal of driving growth and improving productivity for Hitachi’s 270 thousand employees.
Collaboration for Growth and Productivity
Hitachi plans to embed the Microsoft cloud, Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot into their Lumada Solutions. By incorporating these technologies, Hitachi aims to accelerate the growth of their Lumada business and enhance productivity across their organization. This strategic alliance will also enable Hitachi to train more than 50 thousand “GenAI Professionals” on advanced AI skills, with Microsoft’s training resources being incorporated into Hitachi’s program.
Social Innovation and Generative AI
The collaboration between Hitachi and Microsoft will focus on leveraging generative AI to drive social innovation. Hitachi aims to apply generative AI to improve the productivity of frontline workers in social infrastructure areas such as energy and mobility. By combining their capabilities, Hitachi and Microsoft aim to solve the issues faced by customers and society, contributing to a more sustainable future.
The Power of the Microsoft Cloud
Microsoft’s cloud services, including Azure Open AI Service and Dynamics 365, will be integrated into Hitachi’s Lumada solutions. This integration will enable Hitachi to provide innovative solutions for industries such as energy and mobility, delivering better outcomes for businesses and society. The partnership will also address pressing business needs such as bolstering cloud services, enhancing security, and reducing the environmental footprint of data centers.
Hitachi’s Business Transformation with Generative AI
Hitachi’s Generative AI Center and Microsoft will collaborate to improve operational efficiency and application development within the Hitachi Group. By leveraging Copilot for Microsoft 365 and GitHub Copilot, Hitachi aims to enhance its systems development expertise and maintain high quality while improving productivity. Hitachi’s internal validation has shown that the incorporation of Microsoft Azure OpenAI Service and GitHub Copilot can generate proper application source code 70-90% of the time, resulting in high-quality output.
Innovative Digital Solutions with Generative AI
Hitachi is enhancing its Lumada solutions by incorporating the capability of generative AI. For example, Hitachi has already started using Microsoft’s Generative AI for JP1 Cloud Services, streamlining data visualization and analysis to improve operational efficiencies. In an internal verification test, Hitachi confirmed that the time required for an operator to respond to an alert was reduced by approximately two-thirds by using generative AI to respond to the alert and displaying the source of the citation.
Promoting Sustainable Growth
Hitachi and Microsoft will embark on joint projects to promote sustainable growth. This includes supporting the energy transition with digital solutions for asset performance management, energy trading, and risk management. Hitachi Energy’s Enterprise Software Solutions technology, combined with Microsoft’s partnership, will optimize the energy network and deliver reliable and sustainable energy to customers. Additionally, the two companies will work together to reduce the environmental impact of data centers, starting with a project in Europe to achieve zero carbon emissions.
Strengthening Digital Skilling and Talent Development
As part of the partnership, Hitachi plans to train more than 50 thousand GenAI Professionals. These professionals will acquire advanced software development skills using GitHub Copilot and Azure OpenAI Service to support customers’ transformation using AI. By investing in digital skilling and talent development, Hitachi aims to enhance its capabilities and drive innovation alongside Microsoft.
Conclusion
The collaboration between Hitachi and Microsoft represents a significant milestone in accelerating business and social innovation with generative AI. By integrating Microsoft’s cloud services and AI tools into Hitachi’s Lumada Solutions, the partnership aims to drive growth, improve productivity, and deliver transformative outcomes for businesses and society. Through joint projects and the training of GenAI Professionals, Hitachi and Microsoft are committed to addressing pressing business needs, promoting sustainability, and creating a more sustainable future. With the power of generative AI and the Microsoft Cloud, Hitachi and Microsoft are poised to shape the future of business and social innovation.
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