Microsoft Japan Backs Growth of AI-Driven Frontier Firms

Microsoft Japan Co., Ltd. held the “Microsoft AI Tour Osaka” at Congress Square Grand Green Osaka South Building in Umeda, Osaka.

The Microsoft AI Tour is a world tour organized by Microsoft headquarters, visiting more than 40 cities worldwide. In March 2025, Microsoft AI Tour Tokyo was held at Tokyo Big Sight in Ariake, Tokyo, attracting attention with a keynote speech by Microsoft Chairman and CEO Satya Nadella. Microsoft’s new fiscal year began in July 2025, and the Microsoft AI Tour will also be relaunching in a new format. Osaka will be the first location for this new fiscal year event. Approximately 1,500 people, including business leaders, developers, and IT professionals from companies in the Kansai area, registered at the venue. Keynote speeches, breakout sessions, workshops, and other events introduced the latest AI technology and case studies. A Connection Hub was set up within the venue, providing attendees with opportunities to connect with experts from Microsoft Japan and its partners, gaining new perspectives and inspiration for their next actions. Additionally, Osaka Governor Hirofumi Yoshimura delivered a keynote speech and announced a new collaboration between Microsoft Japan and Osaka Prefecture.

How to Evolve into a Frontier Organization? The keynote speech, which began at 9:15 a.m., was titled “Becoming Frontier:Microsoft Japan President Miki Tsusaka took the stage to discuss the theme of “Evolving into a Frontier Organization and Business Transformation with AI.” He demonstrated how Microsoft Teams’ interpreter function can translate conversations between Japanese, Italian, and Korean into each language, enabling natural conversations. He reported, “Microsoft’s generative AI, Copilot, is used by 85% of Nikkei 225 companies. Three years ago, it was used in finance, telecommunications, and retail, but now unique uses are being developed in a variety of industries. Globally, Japanese companies are among the leaders in AI adoption and enthusiastic users. Microsoft Japan employees are also among the world’s top users.” He then outlined the key phrase for this event, saying, “Today, I’d like to propose how to become a frontier organization.” He continued, “A frontier organization is one that is first to use AI, uses it thoroughly, uses it every day, repeatedly trains its AI muscles, fundamentally changes the way we work, and rethinks its business processes. I would like to present what is needed to achieve this.” Next on stage, Tadashi Okazaki, Executive Vice President and General Manager of the Cloud & AI Solutions Division at Microsoft Japan, defined a “frontier organization” as “an organization that uses generative AI and models to transform itself through AI to solve corporate and societal challenges.” He introduced Microsoft’s latest features and capabilities within four frameworks: “Employee Experience,” “Customer Engagement Reform,” “Business Process Reengineering,” and “Accelerating Innovation.” He also demonstrated solutions from the perspectives of “AI Business Solutions,” which provide value through generative AI-powered applications and AI agents; “Cloud & AI Platform,” which provides tools for developing and utilizing generative AI and AI agents; and “Security,” which ensures the safe and secure use of generative AI. In this presentation, a fictional startup called Zava, working in the smart textiles field, experienced rapid growth through an AI-first management approach. He demonstrated how this company is leveraging AI. In the “Employee Experience” section, Microsoft 365 Copilot was used to identify information about competitors’ new product launches and develop a launch strategy for the strategic product ZavaCore. He introduced initiatives such as using agents to develop launch plans. In the “Customer Engagement Reform” section, following the successful launch of ZavaCore, the marketing department used AI to identify new consumer purchasing opportunities. In response, the development department used tools like GitHub Spark and coding agents to rapidly prototype and test new apps. In response to marketing requests for improvements, the development department used Azure AI Foundry to refine the app and prepare it for large-scale deployment. Furthermore, in the “Business Process Restructuring” section, in response to the positive reception of the ZavaCore app, the finance department used M365 Copilot, Microsoft Excel, and Dynamics 365 to launch a financial reconciliation agent. This included automating the end-of-period closing process. Finally, in the “Innovation Acceleration” section, the research and development department developed a new lineup of soccer cleats and continued to innovate with new product launches. They used a digital twin enabled by Microsoft Fabric to iteratively improve and monitor performance. Furthermore, they demonstrated how Microsoft Azure was used to visualize data and utilize it through agents. He also explained the security infrastructure of frontier organizations. He introduced examples of how tools such as data risk assessment and conditional access optimization agents are being used to strengthen AI usage environments. Okazaki stated, “Microsoft can provide comprehensive solutions for a variety of scenarios, and most of these solutions are ready-to-use. This will enable frontier organizations to become reality.” He also stated, “The formula for success when humans and AI coexist is ‘agent + Copilot + human purpose.’ The human purpose is crucial. Microsoft Japan will support organizations in evolving into AI-enabled frontier organizations.” He also cited examples of frontier organizations in Japan, including NTT West, Nippon Ham, Panasonic Information Systems, Murata Manufacturing, and Santen Pharmaceutical, and briefly introduced their respective initiatives.

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New Collaboration with Osaka Prefecture: A new collaboration with Osaka Prefecture was announced at the Microsoft AI Tour Osaka. Osaka Governor Hirofumi Yoshimura took the stage for the keynote speech. He explained the details of the new partnership and shared his thoughts on the future potential of “government AI agents.” Governor Yoshimura said, “AI has great potential. And it is becoming a reality. Companies that cannot utilize generative AI will be weeded out. It is also important for government to increase productivity, and governments that do not utilize generative AI will face an increased tax burden. Conversely, if generative AI is utilized, we can realize a society that can provide many resident services with a small tax burden and in less time. Governments are required to achieve many results with limited financial resources. AI will become an important tool for governments across the country.” Microsoft Japan and Osaka Prefecture signed an agreement on the use of AI in September 2023, and Osaka Prefecture has already begun using generative AI in a communication service for the elderly. “Azure OpenAI Services, MicrosoftThey use Teams for creating administrative documents, summarizing, disseminating information, generating ideas, and conducting research. While administrative staff are notoriously reluctant to take on new challenges, 95% of them reported that they would like to continue using AI. This collaboration includes the development and implementation of AI agents, as well as providing opportunities for citizens and prefectural government employees to acquire AI skills. Specifically, the initiative will focus on three areas. The first is “supporting the advancement of administrative services using AI agents.” Osaka Prefecture has previously used AI to improve the efficiency of resident services and internal operations. In this new initiative, the prefecture will test AI agents for administrative guidance, consultations, and multilingual support. In the future, the prefecture will consider more advanced uses, such as formulating policies based on real-time resident feedback. Furthermore, through collaboration with the Osaka Wide-Area Data Collaboration Platform (ORDEN), the prefecture will work to build a foundation for collaboration between humans and AI, and Microsoft Japan will provide technical support. Osaka Prefecture also announced that it will launch an “AI Agent Demonstration Consortium” within the year. The second initiative is the “Provision of an AI Skills Acquisition Support Program for Women.” Microsoft Japan has a proven track record of working with domestic partner companies to provide AI skills training opportunities to a diverse range of individuals, companies, organizations, and developers. Leveraging this experience, the company is offering a free AI skills training program called “Code; Without Barriers” within the Osaka Prefecture “Encounter Training” framework. This program supports women in acquiring AI skills. The program consists of two courses, “Using AI” and “Creating AI,” and aims to equip employed and job-seeking women with practical skills for the AI ​​era. The third initiative involves Microsoft Japan acting as advisors to strengthen the use of generative AI within the Osaka Prefectural Government. Based on the framework of the “In-House Generative AI Advisor System” to be established by Osaka Prefecture in September 2025, Microsoft Japan employees will serve as advisors to promote the safe and effective use of generative AI within the government. The program aims to contribute to the establishment and expansion of generative AI use in the workplace. Governor Yoshimura stated, “The pace of evolution in generative AI is accelerating. One year’s progress is equivalent to about ten years of progress. I would like to use it not only for consultations using chatbots, but also for policymaking. While policymaking can sometimes be influenced by the loudest voices, it will become possible to extract the real concerns and issues of residents, analyze them using AI, and then politicians can make decisions based on that. Furthermore, it will become commonplace to use AI agents to create a society where procedures like moving are easy. Going forward, “government AI agents” will be a key term.” Governor Yoshimura mentioned the launch of the Administrative AI Agent Demonstration Consortium, scheduled for establishment within 2025, and mentioned that it will involve not only government agencies but also AI-related companies. “I would love for Microsoft to participate,” he called on President Tsusaka, who responded, “We will consider it positively.”

Panel Discussion Meanwhile, in the second half of the keynote speech, a panel discussion was held, moderated by Microsoft Japan President Tsusaka, featuring Shinichiro Isa, Executive Officer and General Manager of Group Strategy at Resona Holdings, Akihiro Kitani, Managing Executive Officer and CIO (Business Innovation) at Mazda, and Masato Miyake, Vice President of Ritsumeikan University. Isa of Resona Holdings commented, “As customer needs become more diverse, the number of things we need to do is increasing. To provide better service, understanding, knowledge, and the ability to make proposals are required, and this is where generative AI can be used. We need an environment where generative AI can be used normally, and we are currently training personnel who will use AI and those who will create it. Generative AI is a transformation of corporate culture in itself.” Mazda’s Kitani said, “To meet employee needs for generative AI, we launched the AI ​​Dojo in 2023. Approximately 60 AI experts served as instructors, bringing in challenges from the workplace to learn. The Health Management Center has begun activities to utilize accumulated data to improve well-being. We are also collaborating with Hiroshima University. We have also established the MAX (Mazda AI Transformation) Project Office, with a staff of 400, and are using AI and big data to improve our corporate competitiveness.” Ritsumeikan University’s Miyake added, “We are the first in Japan to establish Microsoft Base Ritsumeikan on a university campus. We use it as a place where questions about AI and data utilization can be discussed immediately. We are incorporating AI into lectures and using it to solve local issues. At Ritsumeikan University, our goal is to cultivate creative talent. When using AI, human decision-making is important. We need people who can determine the purpose and what to do, and we hope to utilize the university to solve social issues brought to Microsoft Base Ritsumeikan.” President Tsusaka concluded his keynote speech by pointing out that “the more AI evolves, the more important it becomes to talk about humans, not technology.”The program provides “AI Skills Training for Women,” which supports women in acquiring AI skills. The program consists of two courses, “Using AI” and “Creating AI,” and allows employed and job-seeking women to acquire practical skills suited to the AI ​​era. The third initiative is an initiative in which Microsoft Japan will act as advisors to support the strengthening of generative AI use at the Osaka Prefectural Government. Based on the framework of the “Internal Generative AI Advisor System” that Osaka Prefecture will establish in September 2025, Microsoft Japan employees will act as advisors to support the promotion of safe and effective use of generative AI within the government. The goal is to contribute to the establishment and expansion of generative AI use in the workplace. Governor Yoshimura stated, “The pace of evolution in generative AI is accelerating. One year’s progress is equivalent to about ten years of progress. I would like to use it not only for consultations using chatbots, but also for policymaking. While policymaking can sometimes be influenced by the loudest voices, it will become possible to extract the real concerns and issues of residents, analyze them using AI, and then politicians can make decisions based on that. Furthermore, it will become commonplace to use AI agents to create a society where procedures like moving are easy. Going forward, “government AI agents” will be a key term.” Governor Yoshimura mentioned the launch of the Administrative AI Agent Demonstration Consortium, scheduled for establishment within 2025, and mentioned that it will involve not only government agencies but also AI-related companies. “I would love for Microsoft to participate,” he called on President Tsusaka, who responded, “We will consider it positively.”

Panel Discussion Meanwhile, in the second half of the keynote speech, a panel discussion was held, moderated by Microsoft Japan President Tsusaka, featuring Shinichiro Isa, Executive Officer and General Manager of Group Strategy at Resona Holdings, Akihiro Kitani, Managing Executive Officer and CIO (Business Innovation) at Mazda, and Masato Miyake, Vice President of Ritsumeikan University. Isa of Resona Holdings commented, “As customer needs become more diverse, the number of things we need to do is increasing. To provide better service, understanding, knowledge, and the ability to make proposals are required, and this is where generative AI can be used. We need an environment where generative AI can be used normally, and we are currently training personnel who will use AI and those who will create it. Generative AI is a transformation of corporate culture in itself.” Mazda’s Kitani said, “To meet employee needs for generative AI, we launched the AI ​​Dojo in 2023. Approximately 60 AI experts served as instructors, bringing in challenges from the workplace to learn. The Health Management Center has begun activities to utilize accumulated data to improve well-being. We are also collaborating with Hiroshima University. We have also established the MAX (Mazda AI Transformation) Project Office, with a staff of 400, and are using AI and big data to improve our corporate competitiveness.” Ritsumeikan University’s Miyake added, “We are the first in Japan to establish Microsoft Base Ritsumeikan on a university campus. We use it as a place where questions about AI and data utilization can be discussed immediately. We are incorporating AI into lectures and using it to solve local issues. At Ritsumeikan University, our goal is to cultivate creative talent. When using AI, human decision-making is important. We need people who can determine the purpose and what to do, and we hope to utilize the university to solve social issues brought to Microsoft Base Ritsumeikan.” President Tsusaka concluded his keynote speech by pointing out that “the more AI evolves, the more important it becomes to talk about humans, not technology.”The program provides “AI Skills Training for Women,” which supports women in acquiring AI skills. The program consists of two courses, “Using AI” and “Creating AI,” and allows employed and job-seeking women to acquire practical skills suited to the AI ​​era. The third initiative is an initiative in which Microsoft Japan will act as advisors to support the strengthening of generative AI use at the Osaka Prefectural Government. Based on the framework of the “Internal Generative AI Advisor System” that Osaka Prefecture will establish in September 2025, Microsoft Japan employees will act as advisors to support the promotion of safe and effective use of generative AI within the government. The goal is to contribute to the establishment and expansion of generative AI use in the workplace. Governor Yoshimura stated, “The pace of evolution in generative AI is accelerating. One year’s progress is equivalent to about ten years of progress. I would like to use it not only for consultations using chatbots, but also for policymaking. While policymaking can sometimes be influenced by the loudest voices, it will become possible to extract the real concerns and issues of residents, analyze them using AI, and then politicians can make decisions based on that. Furthermore, it will become commonplace to use AI agents to create a society where procedures like moving are easy. Going forward, “government AI agents” will be a key term.” Governor Yoshimura mentioned the launch of the Administrative AI Agent Demonstration Consortium, scheduled for establishment within 2025, and mentioned that it will involve not only government agencies but also AI-related companies. “I would love for Microsoft to participate,” he called on President Tsusaka, who responded, “We will consider it positively.”

Panel Discussion Meanwhile, in the second half of the keynote speech, a panel discussion was held, moderated by 日本マイクロソフト President Tsusaka, featuring Shinichiro Isa, Executive Officer and General Manager of Group Strategy at Resona Holdings, Akihiro Kitani, Managing Executive Officer and CIO (Business Innovation) at Mazda, and Masato Miyake, Vice President of Ritsumeikan University. Isa of Resona Holdings commented, “As customer needs become more diverse, the number of things we need to do is increasing. To provide better service, understanding, knowledge, and the ability to make proposals are required, and this is where generative AI can be used. We need an environment where generative AI can be used normally, and we are currently training personnel who will use AI and those who will create it. Generative AI is a transformation of corporate culture in itself.” Mazda’s Kitani said, “To meet employee needs for generative AI, we launched the AI ​​Dojo in 2023. Approximately 60 AI experts served as instructors, bringing in challenges from the workplace to learn. The Health Management Center has begun activities to utilize accumulated data to improve well-being. We are also collaborating with Hiroshima University. We have also established the MAX (Mazda AI Transformation) Project Office, with a staff of 400, and are using AI and big data to improve our corporate competitiveness.” Ritsumeikan University’s Miyake added, “We are the first in Japan to establish Microsoft Base Ritsumeikan on a university campus. We use it as a place where questions about AI and data utilization can be discussed immediately. We are incorporating AI into lectures and using it to solve local issues. At Ritsumeikan University, our goal is to cultivate creative talent. When using AI, human decision-making is important. We need people who can determine the purpose and what to do, and we hope to utilize the university to solve social issues brought to Microsoft Base Ritsumeikan.” President Tsusaka concluded his keynote speech by pointing out that “the more AI evolves, the more important it becomes to talk about humans, not technology.”

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