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Hitachi and Microsoft Announce Strategic Partnership with Generative AI Hitachi and Microsoft Announce Strategic Partnership with Generative AI
Hitachi and Microsoft have announced a projected multibillion-dollar collaboration over the next three years to drive innovation through generative AI. The... Hitachi and Microsoft Announce Strategic Partnership with Generative AI

Hitachi and Microsoft have announced a projected multibillion-dollar collaboration over the next three years to drive innovation through generative AI. The aim is to propel the growth of Hitachi’s Lumada business, with a planned revenue target of 2.65 trillion yen by FY2024, and improve operational efficiency and productivity for Hitachi Group’s 270,000 employees.

Under this collaboration, Hitachi will integrate Microsoft’s cloud technologies, including Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot, into its Lumada solutions. These integrations will support various industries such as energy and mobility, providing innovative solutions that enhance business outcomes and societal benefits.

The partnership will also address critical business needs like bolstering cloud services, enhancing security, and mitigating the environmental footprint of data centers, which is increasingly important with the growing use of generative AI.

Keiji Kojima, President and CEO of Hitachi, highlighted the transformative potential of this partnership: “Hitachi has been driving transformation by applying AI across the Hitachi Group to improve productivity and will invest 300 billion yen ($2.1 billion) in GenAI to capture new growth opportunities in FY2024. Hitachi and Microsoft have already been working on a variety of co-creation projects, and under this new agreement, we are excited to further accelerate social innovation by expanding our efforts to social infrastructure areas such as energy and mobility, and by applying generative AI to improve the productivity of frontline workers.”

Satya Nadella, Chairman and CEO of Microsoft, emphasized the significance of the expanded partnership: “We are entering a new era of AI with the promise to deliver transformative business outcomes across every role and industry. Our expanded partnership with Hitachi will bring together the power of the Microsoft Cloud, including Microsoft Copilot, with Hitachi’s industry expertise to improve the productivity of 270,000 Hitachi employees and help address customers’ biggest challenges, including sustainability.

The collaboration will see Hitachi’s Generative AI Center working with Microsoft to enhance operational efficiency and application development within the Hitachi Group using Copilot for Microsoft 365 and GitHub Copilot. Hitachi will also leverage Azure OpenAI Service to elevate its customer service.

This integration has already shown promising results, with internal validation confirming that detailed system design knowledge combined with Microsoft’s AI services can generate high-quality application source code 70% to 90% of the time.

Additionally, Hitachi Rail is using generative AI for predictive maintenance, which enhances equipment monitoring and improves forecast accuracy. This proactive approach helps prevent breakdowns, increases service quality, reduces operating expenses, and enhances safety.

For instance, a cloud-based platform on Microsoft Azure has been utilized to streamline data visualization and analysis, empowering AI-driven insights for rail infrastructure monitoring and predictive maintenance.

Incorporating generative AI into Lumada solutions, Hitachi has begun utilizing Microsoft’s AI for JP1 Cloud Services, its integrated operations management software. This initiative aims to accelerate response times to failures and improve operational efficiencies for IT departments, financial, and public institutions.

In an internal test, generative AI reduced the time required for operators to respond to alerts by approximately two-thirds. Finally, the partnership will also focus on supporting the energy transition by enhancing digital solutions for asset performance management, energy trading, and risk management, thereby reducing downtime and increasing profitability.

ODSC Team

ODSC Team

ODSC gathers the attendees, presenters, and companies that are shaping the present and future of data science and AI. ODSC hosts one of the largest gatherings of professional data scientists with major conferences in USA, Europe, and Asia.

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