NEC (6701) Investor update summary

Technology development, vision, and R&D initiatives

• Advancements in AI are shifting from automation tools to autonomous actors in economic activities, with a focus on robust, secure infrastructure and AI security platforms.

• Proprietary AI technology, such as NEC cotomi, underpins innovation and business expansion, with NEC leading in biometric authentication, video recognition, and international AI patent applications.

• Optical computing, BluStellar, and intelligent platforms are highlighted as future growth areas, supporting rapid, reliable processing and secure networks.

• R&D is closely integrated with business units to accelerate productization, commercialization, and market responsiveness, reducing time from years to months.

• National-level security solutions and advanced personnel protect digital infrastructure.

AI business applications and market expansion

• AI agents and tools like BestMove, procurement negotiation agents, cotomi Act, and Command Center Agent are transforming business processes in marketing, manufacturing, procurement, sales, and emergency response.

• AI utilization is expanding across manufacturing, finance, logistics, services, and public operations, driven by labor shortages and digital transformation needs.

• BluStellar initiative leverages advanced technologies internally and with clients to accelerate digital transformation and operational efficiency.

• AI-driven automation reduces labor hours, increases negotiation efficiency, and institutionalizes tacit knowledge.

• AI agents are being sequentially released to automate and enhance business processes in various sectors.

AI governance, security, and risk management

• Comprehensive AI governance includes consulting, risk assessment, policy development, and continuous monitoring, with a focus on customization and domain-specific models.

• Cybersecurity is enhanced through the CylOC center, integrating proprietary intelligence and AI for 24/7 global protection.

• Collaboration with partners like Cisco and Google Cloud accelerates adoption of generative AI and strengthens security.

• Emphasis on anonymization, guardrails tailored to cultural and organizational norms, and advanced cybersecurity for autonomous AI agents.

• AI's potential for deception and rogue behavior is addressed through transparency, verification, value alignment, and control technologies.