Hitachi will leverage Microsoft and OpenAI’s GenAI services. Credit: Getty Images/NurPhoto/Contributor.

Hitachi and Microsoft have announced a projected multibillion-dollar collaboration over the next three years to accelerate social innovation with GenAI. 

The Japanese multinational company said it will leverage Microsoft and OpenAI’s GenAI services to promote operational efficiency and productivity improvements for its 270,000 employees.

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“Hitachi has been driving transformation by applying AI across the Hitachi Group to improve productivity and will invest Y300bn ($2.1bn) in GenAI to capture new growth opportunities in fiscal year 2024,” said Keiji Kojima, president and CEO of Hitachi. 

Hitachi Group will embed Microsoft cloud, Azure Open AI Service and AI Copilot into its digital services business, Lumada Solutions, to accelerate its growth.

The multinational company said it will apply GenAI to improve the productivity of its front line workers and help solve the issues “faced by our customers and society, and contribute to a more sustainable future”.

Hitachi also said it will train more than 50,000 GenAI professionals as part of the partnership with Microsoft.

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“We are entering a new era of AI with the promise to deliver transformative business outcomes across every role and industry,” said Satya Nadella, chairman and CEO of Microsoft.

“Our expanded partnership with Hitachi will bring together the power of the Microsoft Cloud – including Microsoft Copilot – with Hitachi’s industry expertise to improve the productivity of 270,000 Hitachi employees and help address customers’ biggest challenges, including sustainability,” he added.

GlobalData predicts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual growth rate (CAGR) of 35% between 2022 and 2030.

In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027, a CAGR of 80%.