Osaka Gas, Oasis Research, and IBM Japan Sign Co-creation Partnership to Aim for Next-Generation IT System Transformation Centered on AI

Osaka Gas Co., Ltd. (President and CEO: Masataka Fujiwara, hereinafter "Osaka Gas"), Oasis Research Co., Ltd. (President: Kazuhiko Yoshimura), and IBM Japan, Ltd. (President: Akio Yamaguchi, hereinafter "IBM Japan") have signed a co-creation partnership agreement to accelerate the digital transformation (DX) of the Daigas Group and contribute to solving the challenges of a rapidly changing society, initiating discussions towards a "next-generation IT system transformation centered on AI."

Left: Ko Sakanashi, Senior Vice President and Chief Digital & Information Officer, Osaka Gas Co., Ltd. / Right: Masaki Murata, Vice President and Chief AI Officer, Technology Division Head, IBM Japan, Ltd.

The co-creation partnership aims to enhance the value provided to customers and further strengthen the stable business provision base as an infrastructure operator, by leveraging the energy business know-how, IT system development and operation knowledge, and experience cultivated by the Daigas Group, along with IBM's advanced technologies and case studies, including AI. As a first step towards achieving this, the three companies will proceed with discussions and trials in the following areas:

A: Initiatives to Enhance Value Provided to Customers - AI Implementation and System Modifications to Enhance Customer Value To respond more promptly and accurately to increasingly sophisticated customer needs, we will promote the modification of existing systems by expanding the scope of application of the latest technologies such as AI agents. In achieving this, we will leverage IBM's AI technology and knowledge regarding the modernization of existing systems (Note 1).

B: Initiatives to Further Strengthen the Stable Business Provision Base - Advancement of System Development and Operation Utilizing AI By utilizing an AI-driven development platform (Note 2), we will promote further labor savings and shorten project timelines compared to current development methods. Furthermore, for system operation tasks, we aim to further improve operational efficiency and accuracy by using AI for task automation and labor-saving tools, in addition to current operational know-how.

- Advancement of Security Measures Cybersecurity risks are increasing, with attacks on system vulnerabilities becoming more active globally. We will promote further advancement of our response policy to cyberattacks that exploit AI.

C: Initiatives to Further Accelerate A and B - Development of Advanced DX Human Resources through Personnel Exchange From the operational capacity generated through initiatives A and B, we aim to foster and produce Daigas Group personnel capable of promoting strategic areas such as AI, modernization, and security through mutual exchange, in order to create higher added value.

Furthermore, through this initiative, IBM Japan aims to accumulate knowledge and know-how in the energy industry and build solutions for the further development of the industry.

The three companies have currently established multiple specialized study teams under this partnership and are proceeding with specific technology verification and roadmap development in each area. The plan is to further expand and accelerate the application of AI to specific systems and operations by fiscal year 2026, ensuring the digital transformation of the Daigas Group.

Note 1: Rebuilding existing systems that have been used for many years to align with a company's needs and changes in the external environment, using the latest technologies and products. Note 2: A foundation that prepares the necessary tools, environment, and procedures for system development in advance, incorporating AI support and automation functions in each process.

Comment - Ko Sakanashi, Senior Vice President and Chief Digital & Information Officer, Osaka Gas

By effectively combining the strengths and resources of the Daigas Group and IBM Japan, we aim to generate synergistic effects and promote IT system transformation for the Daigas Group, thereby contributing to the provision of new value to customers and the development of the energy industry and Japanese society.