Jun. 23, 2023
Sumitomo Corporation Group's Approach to Generative AI ApplicationsDeploying Generative AI Technology to Accelerate DX
In April 2023, Sumitomo Corporation, together with group companies SCSK, Insight Edge, and SC Digital Media, formed the Generative AI Utilization Working Group (WG), reporting to the CDO and CIO. In May, we launched demonstration projects to implement generative AI models in business operations.
Our objective is to acquire and share knowledge related to generative AI technology across the Sumitomo Corporation Group in order to rapidly deploy the technology within various organizations operating in different sectors. This deployment aims to upgrade the operations of existing businesses and create new ones.
Generative AI applications advancing into business operations
Since the release of ChatGPT by developer OpenAI, generative AI technology has rapidly expanded its application development and gained widespread use in the business sector. This technology enables a natural language interface, which is crucial for assisting with various office tasks such as preparing minutes and brainstorming. It can also be applied to improve user experience in existing businesses and services. However, it is important for businesses considering adopting this technology to be aware of the potential risks of information security or privacy breaches, as well as legal violations.
Sumitomo Corporation’s capabilities for AI technology deployment
The Sumitomo Corporation Group established the DX Center in April 2018 to facilitate group-wide implementation of digital transformation (DX) in a cross-organizational manner. With a focus on upgrading existing businesses and creating new ones, the DX Center has supported business operations in diverse fields by addressing specific issues through the implementation of appropriate digital technologies. Its track record primarily consists of collaborations with startups through global corporate venture capital (CVC) initiatives and proactive adoption of cutting-edge technological innovations.
The Group recognizes generative AI as a disruptive technology that fundamentally transforms the way businesses operate. Therefore, in April 2023, we formed the Generative AI Utilization WG to utilize this technology and accelerate the Group's DX implementation. The WG, composed of Sumitomo Corporation and the three group companies SCSK, Insight Edge, and SC Digital Media, shares information about the usage and applications of Microsoft's Azure OpenAI Service based on a partnership with Microsoft Japan.
In May 2023, we established Sumitomo Corporation's internal Center of Excellence (CoE) for generative AI technology implementation, named SC-AI Hub. This new organization supports efforts to run generative AI models, upgrade existing businesses, create new businesses, and address information security and legal risks.
Ongoing Initiatives
Sumitomo Corporation, in collaboration with Insight Edge, has commenced a proof-of-concept trial of generative AI models in the following business domains.
- In the tubular trade business, we have initiated the development of an application to support specific tasks. This trial aims to assess the generative AI can function as a business assistant by incorporating and utilizing datasets comprised of internal rules, relevant regulations, operational knowledge, and past transactional data.
- For the consumer-related business, our plan is to develop tool models that can summarize, analyze, and quantify voice of customer (VOC) reports received by the customer support center. This aims to provide deeper insights for increasing customer satisfaction.
If the effectiveness of the established system is recognized through verification experiments, we will promptly expand it to other businesses by preparing datasets for each business.
Additionally, we are considering the development of generative AI chatbots capable of retaining datasets for materials and minutes of important internal meetings. These chatbots would support the management decision-making process by providing readily available reference information for discussions. Going forward, we aim to acquire external best practices data and build systems that enable faster and more advanced decision-making.
We will also explore the possibility of collaborating with external partners to promote generative AI-driven new business creation in the digital technology area. The ideas under consideration involve leveraging our business resources and expertise to develop AI integration business and AI-based consulting services.
The Sumitomo Corporation Group will implement generative AI technology in business operations to accelerate DX and create new value.
Implementing generative AI technology for real-life applications: Sumitomo Corporation’s in-house DX engineering team to venture into a new realm
Junichi Kosaka, CEO of Insight Edge
Insight Edge has been established by Sumitomo Corporation as its in-house DX engineering services provider. As a member of the DX Center, the company strives to create solutions based on the latest digital technologies, improving productivity and creating value for businesses developed by the Group across various fields.
Generative AI technology has led to breakthroughs, enabling tools like ChatGPT and opening up new possibilities. As an engineering team working with cutting-edge technology, we have taken early steps to implement generative AI for real-life applications, carefully considering the potential risks and opportunities. Utilizing our position as an in-house function, we aim to expedite the implementation of appropriate generative AI applications in business operations through a faster and more agile process.
We will continue our efforts, working closely with various stakeholders within and outside Sumitomo Corporation, and leveraging our strengths as a general trading company capable of offering digital solutions to promote a digital-driven upgrade of business operations.
