3 days ago
Tokyo AI firm probed after inflating sales
Alt Inc. has grown quickly thanks to AI Gijiroku, its artificial intelligence-powered meeting transcription service. (Captured from the company website)
A Tokyo-listed, fast-growing artificial intelligence firm is under investigation for allegedly inflating its sales figures through fictitious transactions, according to sources.
Alt Inc. allegedly engaged in a fraudulent trading scheme by funneling money through collaborators, who then cycled the funds back to the company in the form of payments for AI Gijiroku, its automated meeting transcription service.
Many of the accounts created through these purchases were reportedly inactive.
Of the 6 billion yen ($41.9 million) in sales reported for the fiscal year ending December 2024, 4 billion yen may have been falsely recorded.
Some company insiders are said to have admitted to the fabrication during interviews with authorities. The scheme is believed to have begun as early as 2021.
Founded in 2014, Alt grew rapidly after the launch of AI Gijiroku in 2020, with sales surging more than 100-fold over the next four years. The flagship transcription service accounted for up to 90 percent of the company's reported sales.
An Alt insider suggested that the company's manipulated sales figures played a role in securing its IPO on the Tokyo Stock Exchange Growth Market in October last year.
The Securities and Exchange Surveillance Commission launched an investigation into the company in April, following a covert probe triggered by a whistleblower's report.
In response to the investigation, Alt established a third-party committee to examine cases in which partner companies sold AI Gijiroku accounts that were never used, acknowledging the possibility of inflated sales.
When contacted by The Asahi Shimbun, Alt declined to comment, citing the ongoing investigation by the third-party committee.
