AI inside

Basic Information

Stock Code
4488
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
August 2015
Listing Year
December 2019
Official Website
https://inside.ai/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
BrainPad, Data Section, PKSHA Technology, Neural Group, JDSC, Kudan, Triple-I, Ridge-i, Grid, Labo.ro.AI, ZETA

Overview

AI inside is a leading technology company in the information and communications industry, established in 2015, leveraging AI-OCR technology and generative AI to deliver Japan's top-share AI character recognition service.

Current Situation

In the fiscal year ended March 2023, AI inside recorded standalone net sales of approximately 3.8 billion yen and operating profit of approximately 280 million yen, but posted a net loss of approximately 520 million yen. Its flagship AI-OCR service 'DX Suite' holds a high market share in Japan and boasts approximately 98% accuracy in handwritten text recognition technology. Sales are conducted directly as well as through partner companies such as NTT Data and Dai Nippon Printing. In recent years, the company has focused on deploying the AI agent 'Heylix' utilizing generative AI and large language models, and the no-code AI development platform 'AnyData'. To achieve sustainable growth, it is advancing AI technology sophistication and addressing diverse business automation needs. In 2021, it was impacted by sales decline due to non-renewal of a major license, but medium- to long-term growth is anticipated with the tailwind of expanding AI adoption. Internally, it has established the generative AI/LLM R&D organization 'Xresearch' and the AI implementation consulting team 'InsideX'. It is strengthening market competitiveness through a major 2024 AI-OCR update and proprietary large language model development.

Trivia

Interesting Facts

  • Achieves approximately 98% accuracy in handwritten text recognition with proprietary AI technology.
  • Holds top share in Japan's AI-OCR market.
  • Early introduction of products fusing generative AI and OCR technology.
  • Jointly developed real-time video translation technology with TV Asahi, winning awards.
  • Rapid business expansion since TSE Mothers listing in 2019.
  • Advancing generative AI and large language model research via Xresearch organization.
  • AI agent 'Heylix' combines multiple AI technologies for business efficiency.
  • Majority of sales dependent on indirect sales through partners.
  • Accelerating on-site AI utilization with no-code development environment.
  • Possesses proprietary technology suite strong in complex business automation.
  • Providing multiple generations of edge computing hardware.
  • Established executive consulting team 'InsideX' in 2023.
  • Experienced stock price fluctuations due to license contract reductions since 2021.
  • Over 100 partner companies spanning diverse industries.
  • Capable of providing services on both cloud and on-premises.

Hidden Connections

  • Joint research with TV Asahi brought innovation to TV broadcast technology.
  • Strong sales partnerships with majors like NTT Data and Dai Nippon Printing.
  • Serves as infrastructure supporting Japan's business efficiency via AI/OCR technology.
  • Generative AI research organization Xresearch is a cutting-edge hub attracting industry attention.
  • Proprietary large language model PolySphere-2 excels with Japanese specialization.
  • Built complementary relationships with partner companies across diverse sectors.
  • Edge AI hardware development contributes to promoting domestic AI-IoT fusion technology.
  • Executive AI implementation consulting 'InsideX' specializes in corporate transformation support.

Future Outlook

Growth Drivers

  • Increasing demand from societal implementation of generative AI
  • Technological advancement and differentiation of large language models
  • Accelerated AI adoption driven by corporate DX initiatives
  • Demand for no-code AI development adaptable to diverse industries
  • Market expansion in edge computing
  • Growing needs for combined cloud and on-premises solutions
  • Market growth in executive consulting
  • Spread of business automation via AI agents
  • Strengthening and expansion of partner ecosystem
  • Enhanced domestic market superiority via Japanese-specialized models
  • Promotion of new service development leveraging AI
  • Rising awareness of environment, society, and governance (ESG)

Strategic Goals

  • Maintain and expand position as top industry AI-OCR service provider
  • Become a leading company in generative AI and large language models
  • Deploy innovative services in AI agent field
  • Achieve sustained growth with annual sales exceeding 10 billion yen
  • Strengthen collaboration framework with diverse industry partners
  • Establish hybrid deployment combining cloud and on-premises
  • Leader in AI consulting for corporate executives
  • Practice sustainable management contributing to society
  • Realize employee diversity and supportive work environment
  • Secure ongoing investment in cutting-edge technology R&D

Business Segments

AI-OCR Service Provision

Overview
Automates form processing across diverse industries with AI to enhance business efficiency.
Competitiveness
Top domestic share in character recognition accuracy and compatibility with diverse forms.
Customers
  • Financial institutions
  • Government offices
  • Manufacturing
  • Logistics
  • Medical institutions
  • Educational institutions
  • Retail
  • Real estate
  • Insurance
  • Human resources services
Products
  • DX Suite
  • Elastic Sorter

No-Code AI Development Platform

Overview
Provides a platform enabling anyone to develop AI models.
Competitiveness
Convenience of code-free, immediate on-site usability.
Customers
  • System integrators
  • Data scientists
  • Manufacturing
  • Retail
  • Service industry
Products
  • AnyData
  • Learning Center Vision
  • Learning Center Forecast

Edge AI Hardware

Overview
Provides edge devices suitable for real-time AI processing on-site.
Competitiveness
Lightweight, high-performance hardware tailored for industrial use.
Customers
  • Manufacturing
  • Retail
  • Logistics
  • Government offices
Products
  • AI inside Cube series

AI Technology Consulting

Overview
Provides AI adoption strategy planning and implementation support for executives.
Competitiveness
Practical consulting based on the latest AI technologies.
Customers
  • Corporate executives
  • Government offices
  • Financial institutions
Products
  • InsideX AI Implementation Consulting

Generative AI and Large Language Model Development

Overview
Advances research, development, and implementation of generative AI and multimodal AI technologies.
Competitiveness
High-precision support via proprietary large-scale Japanese models.
Customers
  • IT companies
  • Research institutions
  • Service industry
Products
  • Heylix
  • PolySphere-2

Competitive Advantage

Strengths

  • High-precision AI-OCR technology
  • Domestic largest market share
  • Strong partner collaboration network
  • Integrated operation of diverse AI technologies
  • Proprietary large language model holdings
  • Provision of no-code AI development environment
  • Sustained investment in technology development
  • Advanced image and text recognition capabilities
  • Rapid customer response capabilities
  • Expertise across diverse industries
  • Consulting services for executives
  • Edge computing compatible technology
  • AI agents for complex tasks
  • In-house R&D organization
  • Robust cloud service infrastructure

Competitive Advantages

  • Maintains top share in Japan's AI character recognition market
  • Differentiation through fusion of generative AI and OCR technology
  • Enhanced sales power via partnerships with major companies
  • Rapid deployment enabled by no-code platform
  • Improved customer satisfaction with high-precision handwritten recognition
  • High-quality support via proprietary large language models
  • Provision of AI agents capable of handling complex tasks
  • On-site immediate processing via edge devices
  • Customer base expansion through executive AI implementation support
  • Flexible response to diverse industry needs
  • Swift and detailed technical support system
  • Latest technology adoption leveraging R&D organization
  • Flexibility combining cloud and on-premises
  • Aggressive investment for sustained growth
  • High brand recognition and reliability

Threats

  • Risk of non-renewal from major contract clients
  • Challenges in differentiation amid intense AI technology competition
  • Increased burden from regulatory strengthening and technology adaptation
  • Market entry pressure from global AI companies
  • Delays in responding to rapid market need changes
  • Escalating cybersecurity risks
  • Intensifying competition from new entrants
  • Potential reputational damage from AI ethics issues
  • Rising costs for high-performance AI development
  • Declining customer enthusiasm for AI adoption

Innovations

2024: Development of Japanese Document Specialized Large Language Model 'PolySphere-2'

Overview
Developed a proprietary large language model optimized for Japanese document processing.
Impact
Advances AI accuracy improvement and differentiation in the domestic market.

2024: Major Update to DX Suite with Generative AI Features

Overview
Implemented generative AI in AI-OCR to significantly enhance automatic data processing.
Impact
Expands scope of business automation and improves customer convenience.

2023: Official Launch of AI Agent 'Heylix'

Overview
Released a complex task-handling AI combining generative AI and predictive AI.
Impact
Contributes to corporate business efficiency and labor productivity improvement.

2023: Release of AI Integration Platform 'AnyData'

Overview
No-code platform integrating data infrastructure to learning and operational infrastructure.
Impact
Realizes democratization of AI development and accelerates on-site utilization.

2022: Exclusive Contract for U.S. Omniscience's Data Structuring Technology and Patents

Overview
Introduces advanced data structuring technology to improve OCR accuracy.
Impact
Maintains product competitiveness and secures technological superiority.

2021: Launch of High-Performance Edge Computing Hardware 'AI inside Cube Pro'

Overview
Develops hardware to advance performance of industrial edge AI.
Impact
Responds to market needs with real-time processing capabilities.

2021: Launch of Object Detection AI Service 'Learning Center Vision'

Overview
Provides service enabling no-code development and operation of object detection AI.
Impact
Captures new demand in image analysis domain.

Sustainability

  • Contributes to paper resource reduction through AI-driven business efficiency
  • Promotes energy-saving measures in data centers
  • Advances diverse talent recruitment and work-style reforms
  • Strengthens AI technology utilization for social issue resolution
  • Enhances customer trust through stable service provision
  • Product design and development aimed at reducing environmental impact
  • Educational support activities through collaboration with local communities
  • Implementation of sound corporate governance
  • Transparent information disclosure and communication
  • Customer protection through strengthened cybersecurity
  • Environmental considerations advanced with diverse industry partners
  • Sustained promotion of long-term technology R&D