Japanese companies large and small are planning for the future by using generative artificial intelligence to revive the past.

They are “recreating” their founders or other leaders through AI and deploying them to train employees and pass down their management philosophy.

Some small and mid-sized companies are teaching “AI presidents” all the information accumulated over the years within the company and using that data to provide solutions to employees’ tasks and problems.

AI MATSUSHITA

Panasonic Holdings Corp., founded in 1918 by Konosuke Matsushita (1894-1989), has long worked hard to pass down Matsushita’s management philosophy.

However, one current worker said: “I used to remember it, but I’ve forgotten it now. It’s unfamiliar to employees today.”

At every morning meeting, all employees used to recite “The Company Creed and the Seven Principles” since the days when Panasonic was called Matsushita Electric.

However, the morning meetings have disappeared in recent years with the introduction of a flextime system. Also, many employees started working from home during the COVID-19 pandemic.

“Although it hasn’t always been smooth sailing, the company has continued for over 100 years because it has put its management philosophy into practice,” a company official said.

Then, in November last year, Panasonic released an AI recreation of Matsushita, using 34 million characters of text data and 48 hours of audio data.

A synthetic voice and video that resembles Konosuke Matsushita could give responses that the founder would have likely said.

One Panasonic employee praised the AI Matsushita.

“I think it’s good that we can hear his opinions, even though the Matsushita is virtual,” the employee said.

Panasonic intends to use the AI creation for employee training for the time being. It also plans to further develop the AI so that it can give advice to how to manage group companies.

‘IN CONTACT’ WITH PRESIDENT

Home electronics retailer Nojima Corp. also created a copy of its president using generative AI in September last year.

The AI learned 1,000 pages of “Nojima Way,” the company’s book for employees that includes President Hiroshi Nojima’s philosophy.

The president inherited his father’s home electronics store and expanded it to more than 200 outlets across the country.

If an employee asks, “I have become a store manager and am worried if I can manage my subordinates well,” through a smartphone or other device, the AI Nojima might answer: “It is a sin to overlook your subordinates’ mistakes or problems. You should scold them when it is appropriate, give them tasks, and encourage their growth.”

It is common for young Nojima employees to assume managerial positions or become store managers.

However, these employees do not often meet with the president. But they can learn how the president thinks through the AI Nojima.

About 2,000 managers and new employees have used it so far.

“If someone in such a strong position as the president talks, the impact would be huge,” professor Yoshiaki Takao at the Graduate School of Management, Tokyo Metropolitan University, said of Nojima’s program.

However, the large amount of data needed for the AI to learn will likely limit the number of companies that can replicate someone, Takao said.

Software developer THA Inc., based in Tokyo’s Shinjuku Ward, helps to recreate AI founders and presidents for small- and mid-sized companies.

The company learns about the president’s personality and philosophy through more than 10 hours of interviews. It also makes the AI read as many internal documents as possible.

In one case, an employee of a construction company informed the AI president, “I was told by a customer in his 60s that he no longer needed painting for the exterior walls.”

The AI provided tips to how to persuade the customer, saying, “The walls need to be painted to protect the building and maintain its asset value,” and, “Mistakes in timing could cause the walls to deteriorate more quickly, and this may lead to higher costs.”

Most of THA’s 25 clients are small- and mid-sized companies based in rural areas.

“While large companies’ presidents focus on their business management, those of smaller companies need to do practical tasks as well,” THA President Asako Nishiyama said. “They often receive questions from their employees. So, we aim to enable employees to continue working without these busy presidents.”

So, what are the roles of real presidents?

“AI cannot take responsibility,” Akie Iriyama, a professor at the Graduate School of Business and Finance of Waseda University, said. “Real presidents are expected to take risks, including bold investments, and to bring about innovation.”

He believes that AI will be able to perform such tasks as attendance and inventory management in the future, but it is unlikely to replace humans in areas where personality and trust are important. This includes explaining specific things to employees and shareholders, and taking responsibility.