NTT Corporation established a new company, NTT AI-CIX (AI-Cross Industry transformation) Inc., aiming to optimize the entire supply chain by utilizing business and cross-industry data through artificial intelligence (AI). Thus, by focusing on “Linked AI,” in which various AIs are linked with each other across businesses and industries, the company will provide a full range of services, from consulting to product and solution development, and AI platform services.

At a press conference held in August to announce the establishment of the company, Ippei Shake, President and CEO of NTT AI-CIX, emphasized, “We would like to promote our business with two pillars: producing new businesses and developing platforms.” First, he indicated that the company intends to optimize the entire supply chain and work in collaboration with agricultural wholesalers.

The diversification of lifestyles has led to a demand for cross-field services that are not limited to individual industries. Also, the use of AI is shifting from individual company-specific optimization to optimization among multiple companies and across industries. NTT has decided to launch a new company that aims to realize overall optimization from individual operations. Specifically, it plans to leverage its experience in digital twin prediction and optimization AI and its chain technology (digital twin computing).

Linked AI

Particularly, Linked AI, which is the focus of NTT AI-CIX, is an initiative to create new value by linking data from different industries, such as retail, manufacturing, and logistics, in addition to the conventional use of AI in each industry.

In supply chain management (SCM) for the distribution industry as a whole, each manufacturer, wholesaler, and retailer has been using AI to plan demand, manufacturing, and delivery for each individual company, which has led to excessive inventories and other problems that limit accuracy. Therefore, the company supports overall optimization by linking manufacturing AI, wholesale AI, retail AI, and other industry-specific AI.

Total Optimization

　In agricultural wholesaling, the conventional method, all agricultural products are delivered via wholesale markets. This results in excesses and shortages due to mismatches between supply and demand. It is being replaced by a virtual wholesale market where supply-demand matching and delivery plans are formulated in advance, and direct delivery is made between producers and retailers to achieve total optimization.

Shake says, “We would like to use AI to solve issues that require greater efficiency, such as the 2024 delivery problem. If AI in different industries can exchange information with each other, society as a whole will become more efficient, energy and manpower will be saved, and we will be able to cope with labor shortages,” he said enthusiastically. In addition to building management, Linked AI will be used in urban development, transportation, electric power, agriculture, healthcare, and many other industrial fields.

The original Japanese version of the article was published in Dempa Shimbun Daily on Aug. 26, 2024.

-10 October 2024-