Gee-whiz AI event in doubt as host accused of doing something not so bright
An artificial intelligence conference in which digital clones were to be introduced may have been canceled as the corporate host of the event faces accusations of accounting irregularities.
Tokyo Stock Exchange-listed Alt is under investigation for overstating sales of its main product, an AI transcription service. The stock has lost almost three-quarters of its value since the probe was disclosed on Friday.
The company is scheduled to hold a conference on May 16 in Nihonbashi, where CEO Kazutaka Yonekura will introduce the Personaloid, a new offering that uploads a digital version of a person so that the clone can handle routine tasks for the human.
Two individuals with knowledge of the event, including one of the scheduled speakers, claim that the conference will not be happening.
The website for the conference is still posted, and the company did not immediately respond to questions about the event.
Alt was founded in 2014 and listed in October 2024 on Tokyo Stock Exchange's Growth Market at ¥540 a share. It traded as high as ¥823 a share in December.
On its website, it bills itself as a personal artificial intelligence company. Its products and services include AI GIJIROKU, which can be used to transcribe online calls and video meetings, and CloneDev, a system for creating digital clones of users.
As of December, Alt had 23 employees, each with their own AI clone for handling daily tasks, according to the company's website.
The company reported ¥6 billion in sales in 2024 and has offices in Tokyo and California.
The ¥10,000 per person conference — ONE REBIRTH - Digital revival and the destruction of 20 industries — is to include a number of speakers, including former digital minister Takuya Hirai, former MIT Media Lab director Joichi Ito and Sumitomo Mitsui Banking Corporation chief digital innovation officer Akio Isowa.
Topics to be covered include practical applications of artificial consciousness and the uploading and downloading of consciousness. A panel discussion of how cloning technology will change employment, contracts and ownership will also be held.
Attendees will be invited to create their own simplified digital clones with the submission of biometric data.
Hirai uploaded a YouTube video of himself using CloneDev in October.
In the video, Hirai asks his AI version whether digital clones can be used in medicine and caregiving. AI Hirai expounded on the potential uses of AI in medicine and in caring for the elderly. It noted that AI could help with loneliness.
Dentsu Digital CEO Kou Takimoto took part in a CloneDev demonstration in 2023.
On April 25, Alt disclosed that it has been under investigation by Japan's Securities and Exchange Surveillance Commission since early April for allegedly overstating sales generated by AI GIJIROKU.
The company claimed 9,000 customers for the transcription service as of January. Alt reported that the service generated about 88% of the company's total revenue in 2024.
Regulators have alleged that Alt 'excessively' inflated AI GIJIROKU sales and the number of paid subscriptions for the service.
Alt has delayed the release of earnings, which was originally scheduled for May 14, and has assembled an independent panel of lawyers and accountants to review the accusations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
38 minutes ago
- Japan Times
How ‘vintage' rice is shaking up Japanese politics
To solve the problem of soaring rice prices, Japan's turning to a classic retailer's playbook: rebranding the old as "vintage.' That's what convenience store chain Lawson is dubbing onigiri rice balls made from the grain harvested in 2021 and released from Japan's strategic reserves in an effort to bring down prices. Like eggs in the U.S., the cost of the country's staple, which has doubled over the past 12 months, has been dominating the headlines. And there's far more at stake than the size of the grocery bill: Rice could determine the fate of the government itself. The panic has already caused one political casualty and now hangs over the administration of Prime Minister Shigeru Ishiba ahead of this summer's Upper House elections, where voters are set to punish the government over dissatisfaction with inflation. But the crisis might also be the making of a future leader. Japanese have largely gritted their teeth and lived with the last few years of rising prices, surprising many (myself included). That's allowed firms to pass on increased costs in a way they've not been able to do for years. But rice is where consumers have drawn the line. The staple rose by 98% in the past year, adding almost half a percentage point to headline inflation. A 5 kilogram (11 pound) bag is more than ¥4,000 ($28); calorie-for-calorie, the grain is now more expensive than bread. Enter new Agriculture Minister Shinjiro Koizumi, who's winning hearts (and stomachs) with his approach. Earlier moves to release government stockpiles failed to cut prices. But within days of taking over, Koizumi bypassed auctions and directly sold strategic reserves to retailers. And it's working: Bags of this "vintage' rice are now on supermarket shelves for under ¥2,000. Rice is deeply connected with the Japanese state. Cultivation in its current form dates back more than 3,000 years, when it came from China or the Korean Peninsula. As the country proper was first being formed, authorities collected it as a tax on leased land; during feudal years, how much of the crop a lord could produce would dictate how far he could rise. Children are taught that there are seven gods sleeping in each grain, to encourage them to clear their bowl; sake, brewed from rice, is a sacred drink in Shinto rituals. The Rice Riots of 1918, which in a worrying sign for Ishiba erupted in response to surging prices, killed 20, led to 25,000 arrests and brought down the government. At one point, the staple made up 70% of the average daily calorie intake. In other words, rice is important. So for years, the government has been involved in the market, seeking to maintain self-sufficiency and keep prices at a level that leaves farmers in business but doesn't aggrieve consumers. Official policy created chronic rice surpluses in the 1960s, and so for decades the government paid farmers to make less. This system, known as gentan, was officially discontinued in 2018, but remains informally today, with the powerful Japan Agricultural Cooperatives, or JA, overseeing voluntary cuts. And consumption has been in free-fall for decades, as diets changed to accommodate more international foods. The average Japanese eats less than half the 118 kg a year they ate in 1962. But one reason for this year's shock appears to have been demand exceeding forecasts; with a declining population of farmers incentivized to produce less, it doesn't take much to create an imbalance. The current situation stems from contradictory policies. The government wants cheap rice, but only made in Japan. This is where Koizumi can shine. It is to his credit that he was willing to take on such a high-risk job. If he fails to reduce prices, he'll look incompetent; bring them down too much and he'll upset the powerful farming bloc. Perhaps he is looking to his father's playbook. Junichiro Koizumi, the fondly remembered prime minister of the early 2000s, made his name by putting country above party and tackling a vast vested interest, the mail and banking giant Japan Post. Privatizing it became his goal, a target on which to paint public dissatisfaction with the old ways. It became Koizumi Sr.'s greatest victory. Now, his son can do the same with the farming system, long known to be inefficient but now in need of urgent reform. With some 40% of paddy fields lying fallow, Japan could easily grow more by turning the excess into an export at a time of great premiums for Japanese food. Consolidation of its small farms, something JA will oppose, will encourage efficiency. Koizumi Jr. can imitate his father's legacy by tackling this holdover, taking on JA and showing that he's a man of action, too. The jury is out on whether the country will need a new prime minister after this summer's elections, but there will be a vacancy before too long. Koizumi did well in last year's leadership election, but his greatest weakness was his lack of accomplishments. Now, he has a problem that, like a vintage onigiri, he can really sink his teeth into. Gearoid Reidy is a Bloomberg Opinion columnist covering Japan and the Koreas.
NHK
2 hours ago
- NHK
Japan to release more stockpiled rice
Japan's agriculture minister said on Tuesday that the government plans to release more stockpiled rice to rein in soaring prices for the staple food. Koizumi Shinjiro said the government will sell 200,000 tons harvested in 2020 and 2021 to retailers via no-bid contracts. He said he expects rice from 2020 to be sold at around 1,700 yen, or roughly 12 dollars for 5 kilograms. Koizumi told a news conference: "I think it is an unwelcome fact that soaring prices are causing consumers to turn their backs on rice, and that shop shelves are stacked with rice grown overseas. The government wants to send the message to the market once again that it will do everything it can." After the latest sale, the national stockpile will hold 100,000 tons. Koizumi says this is sufficient for any disaster, citing the 40,000 tons needed in the Great East Japan Earthquake, and 90 tons in the Kumamoto Earthquake. The most recent data from the agriculture ministry shows rice prices at supermarkets fell for the second straight week in late May. The average price of a 5-kilogram bag was 4,223 yen, or about 29 dollars, for the week through June 1, based on a survey of approximately 1,000 supermarkets nationwide. The price, which includes tax, was down 0.9 percent from the previous week. The survey did not include rice released from national stockpiles and sold under a new no-bid contract system.
Japan Times
3 hours ago
- Japan Times
Japanese pension funds holding $400 billion hire their first CIOs
Japanese pension funds are seeking to bolster returns in a volatile market by doing something many of them have never done before: appoint chief investment officers. One of those funds, the Organization for Small & Medium Enterprises and Regional Innovation Japan, an agency that promotes smaller firms, established a position that's equivalent to a CIO in April. It gave the job to Takashi Yamashita, who previously helped design the portfolio of Japan's Government Pension Investment Fund (GPIF), one of the world's biggest retirement fund managers. He'll oversee ¥12 trillion ($83 billion) in assets tied to a fund to aid small businesses, at the firm known as SME Support Japan.
