Sakana AI and MUFG sign agreement to automate creation of banking documents
Sakana AI has signed a ¥5 billion ($34 million) deal with Mitsubishi UFJ (MUFG) to automate the creation of banking documents, including credit approval memos, the companies announced Monday.
'We are very happy to take on the meaningful challenge of revolutionizing banking — a core domain of society — with MUFG,' said Ren Ito, the Japanese artificial intelligence startup's cofounder and chief operating officer.
A six-month pilot phase begins in July, when MUFG's banking subsidiary will start generating documents using Sakana AI's The AI Scientist, "a fully AI-driven system" that was originally designed for automating scientific discovery, including manuscript writing and peer review.
Ito, who has been retained under the terms of the agreement as AI adviser to MUFG Bank, will provide advice on AI implementation strategies for the duration of the deal, which will last 'more than three years', according to a press statement from both companies.
Tokyo-based Sakana AI spent six months tailoring its systems to meet the needs of Japan's financial institutions.
'We are paying attention to the finance industry as an area poised for generating significant value with the use of AI,' the company said in the press release.
Large language models and AI agents alone do not have much value as commodities, Ito said.
ChatGPT is useful, he added, but much more can and needs to be done.
'We decided to make a turnkey solution for banks,' he said.
Looking ahead, Ito said that the partnership faces some challenges, such as figuring out what lies beyond increased efficiency and productivity.
He said that the banking subsidiary of MUFG will be able to write credit memos more quickly with the technology provided by Sakana AI, but lending decisions are another matter altogether.
'As for who it can loan money to, that's a question beyond efficiency and beyond productivity,' said Ito.
Sakana AI, founded by CEO David Ha in 2023, became the fastest unlisted startup in Japan to achieve a valuation of $1 billion.
It has raised about ¥30 billion from a range of investors, including MUFG Bank, Sumitomo Mitsui Banking, Mizuho Financial Group and Nvidia.
MUFG's medium-term business plan, which was published in April 2024, prioritizes the use of AI and the improvement of data infrastructure.
MUFG Bank, which is a consolidated subsidiary of the financial group of the same name, is the largest bank in Japan by assets.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
2 hours ago
- Japan Times
Akazawa vows to redouble efforts for tariff accord with U.S.
Japan's top tariff negotiator, Ryosei Akazawa, on Sunday pledged to step up his efforts to help Tokyo and Washington reach an agreement at an envisaged bilateral summit later this month. "I will do as many things as I can" in the run-up to the expected meeting between Prime Minister Shigeru Ishiba and U.S. President Donald Trump, Akazawa told reporters. Akazawa, minister for economic revitalization, made the remarks after returning home the same day from Washington, where he held the fifth round of negotiations with the U.S. side on a possible review of the Trump administration's high tariff policy. Ishiba and Trump may hold a bilateral meeting on the sidelines of the three-day Group of Seven summit in Canada from June 15. Regarding the view within the Japanese government that it is difficult to persuade the Trump administration to withdraw all of its tariff measures, Akazawa said: "The series of U.S. measures are regrettable. There is no change at all in our stance of urging the U.S. side to review its tariff measures." On the timing of the next round of Japan-U.S. tariff talks, Akazawa said, "I have nothing in particular to say at the moment."
Japan Times
4 hours ago
- Japan Times
Top banker vows loyalty to DEI at Tokyo Pride Parade as Trump's pushback rages
The head of one of Japan's largest investment banks used the Tokyo Pride Parade to strike a rare public stance on pushing ahead with diversity initiatives, as U.S. President Donald Trump seeks to abolish such policies. Few Japanese corporate executives have taken a clear position on U.S. efforts to roll back the diversity, equity and inclusion policies that had become common at global corporations, though many firms appear to have quietly maintained their initiatives. "Even if the U.S. has adopted an anti-DEI policy, Japan should press ahead and make up for lost time rather than following suit,' said Akihiko Ogino, president and chief executive officer of Daiwa Securities Group, before the start of the Tokyo Pride parade near the bustling Shibuya area. He was speaking Sunday at his first visit to the Tokyo iteration of the global event that organizers describe as "advocating LGBTQ+ rights and dignity.' Faced with a rapidly aging and shrinking population, some Japanese firms have sought to bolster the pool of available workers by becoming more inclusive of different gender and sexual minorities, as well as women. Major financial firms including Nomura Holdings, Goldman Sachs Group and Deutsche Bank are also among the sponsors of the event, according to its website. Companies around the world that do business in the U.S. have faced a dilemma in dealing with the abrupt about-face on the issue. Trump has vowed to stamp out diversity policies across the board, saying they are illegal and have disastrous consequences. In response, Citigroup withdrew its ambitious DEI goals and other U.S. financial firms have made adjustments. Ogino said he doesn't necessarily oppose the anti-DEI movement in the U.S., but that he thinks it's "important to recognize that there are people with different viewpoints and work together within an organization.' "I believe we should acknowledge such diversity, recognize the differences between ourselves and others, and work together while respecting each other,' he said. Daiwa earned less than 7% of its ordinary profit last fiscal year through businesses in the Americas as a whole. Japanese automakers Nissan Motor and Toyota Motor rolled back some initiatives in the U.S. last year after pressure from conservative activists like Robby Starbuck. Sumitomo Mitsui Financial Group erased references to DEI from its American websites, but the Japanese company left its international websites untouched, describing the U.S. changes as part of a global digital restructure "after many months of planning.' A survey by the Mainichi newspaper published in March found 83% of Japanese companies who responded agreed that DEI initiatives are necessary to secure talent.
Japan Times
4 hours ago
- Japan Times
Taiwan's Yageo plans to keep Shibaura's AI technology in Japan
Taiwan's Yageo said it would keep Shibaura Electronics's most advanced technology in Japan if it successfully acquires the artificial intelligence sensor maker. The comments from Yageo founder and Chairman Pierre Chen come as Tokyo seeks to strike a balance between shareholder returns while ensuring cutting-edge AI technology stays at home. Shibaura's high-precision thermistors are key for monitoring the internal temperature of electronic devices to prevent overheating. That's especially important in AI, where data centers with large clusters of high-performance servers churn through troves of data. "It is not in Yageo's interest to see Shibaura's technology transfer to countries that Japan considers to be unfriendly,' Chen told reporters in Taipei on Saturday. "We will impose even stricter controls on the technology to make sure it doesn't get leaked.' Yageo is facing off against Nintendo supplier Minebea Mitsumi in its bid for Shibaura and is offering ¥6,200 for each Shibaura share. Minebea last offered ¥5,500 a share. Yageo's tender offer period ends June 19, though Chen wouldn't say if the company would consider an extension. Chen said Yageo officials will meet Shibaura management in Tokyo during the week of June 16 to discuss the offer. The Taiwanese company has had good communications with Japan's powerful Ministry of Economy, Trade and Industry, according to Chen. A Shibaura official declined to comment. Calls to METI outside business hours went unanswered. Yageo's bid for Shibaura has triggered a backlash in some Japanese business circles resistant to takeover bids from foreign companies. Tokyo officials are also split on such overtures. Regulators are trying to bolster corporate transparency and shareholder returns by encouraging companies to unwind cross shareholdings. But that — and a cheap yen — is also making it easier to initiate takeovers of Japanese companies.
