Published on June 3, 2024, 10:50 pm

Hitachi And Microsoft Forge Strategic Partnership To Drive Social Innovation Through Generative Ai

On June 3, 2024, Hitachi Ltd. and Microsoft Corp. announced a significant collaboration aimed at accelerating social innovation through generative AI over the next three years. This multi-billion-dollar partnership is set to boost growth within Hitachi’s Lumada business segment with a projected revenue of 2.65 trillion yen (18.9 billion USD) for FY2024.

The collaboration will see Hitachi integrating various Microsoft solutions such as Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot into its Lumada offerings. By leveraging these technologies, Hitachi aims to provide innovative solutions for industries like energy and mobility to enhance operational efficiency and productivity for its 270,000 employees.

Hitachi plans to invest significantly in GenAI, allocating 300 billion yen (2.1 billion USD) towards capturing new growth opportunities in FY2024. The strategic alliance between Hitachi and Microsoft focuses on driving social innovation across sectors like energy and mobility by applying generative AI to improve frontline workers’ productivity.

Through joint projects, Hitachi’s Generative AI Center will collaborate with Microsoft to enhance operational efficiency and application development within the organization using cutting-edge technologies like Copilot for Microsoft 365 and GitHub Copilot. Additionally, Hitachi Rail is utilizing GenAI for predictive maintenance to optimize equipment monitoring and accuracy of forecasts, ultimately improving service quality while reducing costs.

By incorporating generative AI capabilities into its Lumada solutions, Hitachi aims to revolutionize its services further by offering quicker responses to failures and enhanced operational efficiencies across various sectors like IT departments and financial institutions. The partnership with Microsoft also focuses on supporting the energy transition by providing digital solutions for asset performance management, energy trading, risk management resulting in reduced downtime and increased profitability.

Furthermore, both companies are committed to promoting sustainable growth initiatives by enhancing digital engineering services through joint efforts. As part of their environmental responsibility goals, they are working towards achieving zero carbon emissions starting with a data center project in Europe.

Moreover, focusing on talent development in the era of AI dominance, Hitachi plans to train over 50,000 GenAI Professionals equipped with advanced software development skills using innovative tools like GitHub Copilot and Azure OpenAI Service under this partnership.

This collaboration represents a step towards driving meaningful change through technological advancements that aim not only to boost operational efficiencies but also contribute towards creating a more sustainable future for businesses and society as a whole.


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