AI Innovations Driving SoftBank Corp.’s Vision for a Sustainable Future

SoftBank Corp. (TOKYO: 9434), which is placing high priority on ESG (Environmental, Social, and Governance) management that balances sustainability with enhanced corporate value, held an ESG Briefing Session for investors and the press on March 7, 2025. The session highlighted the company's strategic focus on AI research and applications, human capital initiatives to support its vision and efforts to address environmental challenges.

Building next-generation social infrastructure for the AI era

This year marked SoftBank's second ESG briefing, following the one held last year that outlined its overarching approach to ESG management. This year's session delved into how AI has evolved significantly over the past year, and how the company is incorporating these advancements into both its business and ESG initiatives. Hironobu Tamba, a Vice President who heads SoftBank's Data Platform Strategy Division and Digital Infrastructure Architect Office, and President & CEO of wholly-owned subsidiary SB Intuitions Corp., took to the stage to speak about recent initiatives.

Referring to SoftBank's Long-term Vision to "become a provider of next-generation social infrastructure essential for development of a digital society," Tamba noted, "Our vision is critical to driving ESG management. As digital services continue to expand and society becomes increasingly integrated with AI, the need for advanced social infrastructure is getting more recognition. At the same time, AI requires massive amounts of data processing, which makes environmental considerations essential."

Driving the adoption of digital services across Japan

SoftBank is actively working to deliver digital services powered by AI across Japan. By implementing solutions such as autonomous driving systems, drones, and digital applications, SoftBank is working to improve convenience not only in urban areas, but also in rural and depopulated regions. Some examples include mobility support in areas with limited transportation options and the drone-based delivery of pharmaceuticals.

Japan still faces challenges in implementing these services, however. Data-sharing infrastructure is underdeveloped, with information exchange between companies remaining limited. Furthermore, optimizing transportation and logistics requires predictive technologies that integrate weather conditions and traffic congestion data. These challenges underscore the importance of social infrastructure that integrates AI.

"SoftBank is not just focused on building infrastructure platforms," Tamba explained. "We're also harnessing AI to deliver optimized services to users. That's why we're investing in data center operations, expanding our computing infrastructure and developing generative AI models."

Japan-based data centers and homegrown AI models key to the responsible utilization of AI

To meet the growing computational demands of AI, SoftBank is expanding its AI computing platform infrastructure. AI development and operation requires massive datasets, but relying on servers overseas can lead to latency issues and potential data security risks. Accordingly, SoftBank is building Japan-based computing platforms to ensure secure and efficient operations.

One of the key players in this effort is SB Intuitions, a subsidiary developing homegrown large language models (LLMs) specialized for the Japanese language. Tamba, who also serves as President & CEO of the company, noted, "While it's possible to adapt foreign models for use in Japan, they fall short when it comes to understanding the language deeply or capturing cultural nuances. We aim to combine English-based models for general knowledge and Japan-specific models for localized information to achieve higher accuracy and relevance."

Introducing "AI Agents" to enterprises based in Japan

While today's AI systems can understand specific tasks, they are still limited in their ability to generate new ideas independently. This is where reasoning models come into play. Unlike conventional AI, which simply stores and retrieves knowledge, reasoning models can dynamically utilize multiple AI models to derive optimal solutions. With this capability, AI can evolve beyond simple chat interfaces and perform tasks autonomously. For example, instead of just responding to product-related inquiries through a text-based chat interface, an AI Agent could proceed to place an order on behalf of a user. This is the core concept behind the next-generation AI technology known as "AI Agents."

Tamba explained, "Applying AI Agents to business operations is a direct realization of our recently announced concept of 'Crystal Intelligence.' Within Crystal Intelligence, we've prepared a range of generalized tasks that can be deployed to automate enterprise systems." SB OpenAI Japan - a joint venture that will be 50:50 owned by OpenAI and a company established by SoftBank Group Corp. and SoftBank Corp. - will take the lead in building and providing AI Agent systems to companies across Japan.

Ensuring the ethical use of AI

As AI technologies continue to expand globally, the need for robust governance frameworks is becoming increasingly important. Governments and regulatory bodies around the world are now actively engaging in discussions around AI governance. In Japan, this includes the "AI Guidelines for Business" released by the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry in April 2024, as well as the "Artificial Intelligence Act" approved by the Cabinet in February 2025 to promote the safe research and deployment of AI technologies. Internationally, the EU's Artificial Intelligence Act stands as one of the most stringent sets of AI regulations to date.

"In response to these developments, SoftBank established its AI Ethics Committee last year," Tamba explained. "The committee is tasked with developing internal guidelines and determining how AI should be responsibly used within the company and externally. These discussions incorporate expert perspectives and help shape our responsible approach to AI governance."

Human capital strategy: employee growth as a driver of corporate growth

SoftBank believes it can fuel corporate growth by developing the talents of its employees. With that philosophy, the company is actively creating an environment where employees can leverage AI while also enhancing learning opportunities. These dual efforts-internal operational efficiency and talent development-are key pillars of SoftBank's generative AI initiatives.

SoftBank has developed proprietary AI tools and made them available to employees to create a hands-on learning ecosystem. The company also launched an "AI Campus" to offer tailored educational programs for employees in various positions, including engineers and sales professionals.

Additionally, SoftBank hosts a "Generative AI Contest," which invites employees to propose ideas for utilizing AI, with approximately 190,000 ideas submitted across nine contest rounds to date. Employees with standout ideas are invited to join the AI Project Promotion Office, led by CEO Junichi Miyakawa himself, where they play a central role in evaluating and commercializing those ideas.

Through these initiatives, SoftBank is strategically shifting talent from traditional business domains into new, AI-driven areas. Over 1,000 employees have already transitioned to work in cutting-edge fields, such as SB Intuitions, which develops LLMs, and Gen-AX Corp., which provides generative AI consulting services to enterprise clients.

Creating a work environment where researchers can thrive

SB Intuitions is actively recruiting top-tier AI researchers both in Japan and from abroad, and it has already grown to over 150 employees. The company attracts talent through academic conferences and study groups, while also providing various support systems such as remote work arrangements and programs that help working professionals pursue doctoral degrees to ensure a stable research environment for AI professionals in Japan.

Speaking about the current state of Japan's research landscape, Tamba noted, "It's critical for companies to provide an environment where researchers can continue their work and studies. Without a platform to apply their findings in the business world, some researchers are forced to abandon their research or choose a different career path, even if their work could one day contribute to society or industry. In particular, Japanese-language research in generative AI is crucial, but progress remains limited. As language research becomes increasingly important in AI development, nurturing and retaining researchers in this area is now more vital than ever."

Minimizing environmental impact as AI advances

"While we're working to make society more efficient through AI, it's equally important to minimize the environmental impact of AI as it evolves," Tamba said. "We're addressing two critical challenges: managing the rising energy demands of AI and mitigating the environmental impact of expanded data center infrastructure."

SoftBank is accelerating its shift to renewable energy and is aiming to achieve carbon neutrality by 2030. In line with this goal, SoftBank is promoting the development of regionally distributed data centers that incorporate the concept of "local production, local consumption" for renewable energy, which also contributes to energy resilience and disaster preparedness. To reduce energy use across its nationwide infrastructure, SoftBank began transitioning to a next-generation "All Optical Network" in fiscal 2023. Looking ahead, the company sees quantum computing and energy-efficient AI hardware as essential elements of sustainable AI infrastructure.

One flagship project is the "Brain DataCenter" currently under construction in Tomakomai, Hokkaido Prefecture. This facility will be powered entirely by renewable energy and is designed to utilize water and air in the environment to reduce heat generated by AI computations. The project also emphasizes collaboration with local communities through environmental assessments and ongoing dialogues with municipalities and residents.

"AI consumes large amounts of electricity and computing resources," Tamba said, "but we believe its contribution to society outweighs those costs. At SoftBank, we're committed to building sustainable AI technologies that take ecosystems and environmental impacts into account as we deliver digital services of the future."

(Posted on March 21, 2025)
by SoftBank News Editors