Driving AI Initiatives Through Rapid In-House Implementation

—You are currently overseeing projects mainly focused on AI and data analysis within the Digital Innovation Department. Is the team composed of AI and data analysis experts who have implemented AI in the past?

Yuta Kudo:Many of our team members have extensive experience in AI and data analytics. I studied sensor data processing in graduate school and continued my research at a corporate research institute after graduation, focusing on imaging systems and often translating programs into business applications. However, I found myself increasingly drawn to applying technology directly to business challenges, rather than limiting myself to research.

I considered similar research roles at other companies but felt I could apply my knowledge more effectively in a business-oriented environment. This led me to join Marubeni in 2019 as part of the Digital Innovation Department (then, the Digital Innovation Office). Members with an AI focus come from diverse backgrounds, including IT vendors and pharmaceutical companies, but others like myself joined Marubeni to be closer to the business side.

—What kinds of businesses are you currently engaged in with AI and data analytics?

Kudo:We both integrate new technologies into existing businesses as well as develop entirely new services from the ground up.

For example, since joining Marubeni, I’ve been continuously involved in a project to introduce image analysis AI into factories in the food industry. Traditionally, food quality in overseas factories was checked visually by human inspectors, but even the same inspector’s judgments can vary, potentially leading to complaints in Japan. By installing cameras on production lines and using image recognition to assess freshness and quality, we can improve inspection accuracy. Given Marubeni’s global network of factories, I think there’s real potential to expand this system to more locations in the future.

Image: Yuta Kudo

—How has Marubeni’s approach to business changed with the establishment of the Digital Innovation Department?

Kudo:We have sped up the pace at which we integrate technology into our business. For example, we’re making rapid progress in our new EV charging business, which launched just two years ago. When developing new services with the sales department, we can immediately begin prototyping through consultations with the Digital Innovation Department, which is a great benefit compared to relying on external partners.

From my experience, this speed is crucial. Developing systems as an external company always requires extensive preliminary work and a lengthy communication process. Because we are in-house, we can start photographing samples from a factory right away, which makes a substantial difference when launching new business ventures.

Navigating the Benefits and Challenges of a Small Team

—You must be keeping a close eye on technological trends while working in AI and data analytics. Are there any particular areas that interest you?

Kudo:Because of my current focus, I can see increased momentum in the deployment of technology for green businesses, including renewable energy. For instance, we see an application of AI-powered programs to optimize EV charging, an area where AI is expected to play a major role.

As generative AI has gained significant traction lately, I find it interesting that the need for in-house AI development is diminishing. In the past, R&D teams in manufacturing companies needed to develop AI as their own proprietary technology. But as a smaller team, it can be more effective for us to leverage existing AI technologies to create new value and allow us to experiment with innovative approaches more easily.

—How do you see Marubeni’s business evolving as it rapidly adopts new technologies?

Kudo:Our current size presents both opportunities and challenges. It makes it easier to quickly tackle immediate issues, but a larger organization would still have the edge in developing services that would be used for a decade.

I joined the Digital Innovation Department when there were around 10 members; it has since grown to about 40. We want to create systems so we can manage our products over the long run. Last year, we established Digital Experts, a subsidiary aimed at strengthening our in-house development capabilities. As we continue to add new members, we plan to further enhance our organizational structure in the coming years.

Creating a Versatile Organization to Address Company-Wide Challenges

—Given the frequency of collaborations with different departments, it seems that the Digital Innovation Department has to continuously adapt to new technologies.

Kudo:Our department prizes flexibility and staying current. When tasked with an unfamiliar area, we must quickly get up to speed and absorb new knowledge. Our focus isn’t on being the sole technology experts but on effectively collaborating with specialists across different fields. To rapidly develop products and services in-house, it is vital to scale our organization while maintaining our agility.

As our team grows, it is ever more crucial to systematically share new knowledge and information. In the past, knowledge sharing happened naturally with everyone in the same space, but now, even in remote environments, we are looking at how to effectively disseminate information, drawing from other companies’ best practices.

—As the organization grows while maintaining its agility, its impact on the entire company is sure to increase. What future challenges do you envision? 

Kudo:I feel that the Digital Innovation Department is having a growing impact on the company. We are expanding our capabilities and broadening our support across various departments.

Although our reach within the company is still limited, we are steadily positioning ourselves to tackle a broader range of challenges. Looking toward the future of the Digital Innovation Department, I want us to continue to grow and become a dynamic force capable of tackling all kinds of challenges across the company.