Sumitomo Mitsui Banking Corporation (SMBC) and Fujitsu have teamed up to create an AI-powered data analytics business.

The move comes after the Japanese bank and multinational tech firm joined forces in 2024 to conduct a survey on customer needs. The research revealed that several industries are moving away from decision-making based on individual experience and are focusing on data-driven operations to boost efficiency and management decision-making.

Industries in the survey included manufacturing, wholesale and retail.

The firms’ new initiative will combine SMBC's industry knowledge and data science analysis expertise with Fujitsu's AI demand forecasting to improve management decision-making and support the optimisation of customer product order volumes, staff allocation and logistics planning.

Key project initiatives will include the planning and examination of data analysis solutions to improve customer decision-making and the development of joint marketing activities for customers.

Fujitsu's AI demand forecasting system aims to enable improved product demand and inventory management, helping to reduce waste and improve operational efficiency.

The technology also incorporates Fujitsu's patented Dynamic Ensemble Model technology, an advanced AI demand forecasting system that automatically adjusts and optimally combines multiple demand forecasting models.

The AI-powered system aims to provide more accurate learning that captures the characteristics of each forecast target, including changes due to various factors such as demand cycles, external influences and trends.

The companies stated that the initiative is set against the backdrop of Japan's ageing population and declining birth rate, leading to labour shortages and rising personnel costs, as well as companies' continued awareness of the importance of sustainability efforts.

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