Sumitomo Corporation and the University of Tokyo's Koshizuka Laboratory Launch Joint R&D Project to Advance Retail Data Utilization with Generative AI– Introducing a Conversational User Interface to Streamline and Simplify ID-POS Data –

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) and the University of Tokyo (Bunko-ku, Tokyo; President: Teruo Fujii) – specifically Professor Noboru Koshizuka's Laboratory at the Interfaculty Initiative in Information Studies・Graduate School of Interdisciplinary Information Studies ( https://www.koshizuka-lab.org/; hereinafter "Koshizuka Laboratory") – have agreed to launch a joint research and development initiative to advance retail data utilization using large language models (LLMs).

Background

In recent years, rapid advances in digital technology have enabled retailers to capture data on customers' purchasing behavior and increasingly diverse and complex preferences. The accelerating deployment of AI technologies, including generative AI, is making it possible to extract varied customer value perspectives from massive volumes of customer and product data. Against this backdrop, a new approach is under consideration: linking and analyzing purchase databases held by multiple retailers in an integrated manner, as one way of accurately understanding diverse customer needs and providing optimal products and services. By combining purchase data with qualitative survey data and other sources, this approach aims to uncover customer needs previously opaque to traditional analyses and to create new services aligned with customers' lifestyles and values.

Outline of the Joint R&D Project

The project will integrate Koshizuka Laboratory's cutting-edge expertise in AI, machine learning and other computer science fields with Sumitomo Corporation's retail management, marketing and operational know-how as well as purchasing data. Together, the partners will develop a new analysis system leveraging LLMs. By adopting a conversational user interface, the system is expected to reduce the time and effort manufacturers and retailers devote to analyzing ID-POS data. It will enable staff without specialized knowledge to easily carry out everything from basic data extractions needed for daily operations to advanced analyses referencing multiple databases – helping to raise the overall level of data utilization across the retail industry.

Future Development

Within fiscal 2025, Sumitomo Corporation plans to complete development of a prototype analysis system using retail data from members of its ST Integrated Rewards Program and begin proof-of-concept testing within the Sumitomo Corporation Group. The Company will then verify the system's effectiveness while expanding internal use, with a view to future deployment to external retailers, manufacturers and other partners.
Sumitomo Corporation and Koshizuka Laboratory will also publish academic findings from the joint research and, through industry-academia collaboration, contribute to digital transformation and solutions to social issues in Japan's retail sector, thereby creating new value.

ST Integrated Rewards Program
A shared point and electronic money service available for use across participating retailers.
Details: Summit and Tomod's Shared Loyalty Program "ST Points" Launches with Integrated Member IDs

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