NEC is accelerating internal digital transformation (DX) through the implementation of its Client Zero strategy. This strategy is a cyclical model in which NEC itself becomes the first customer to utilize digital solutions, accumulating practical expertise that is then shared externally. Under the Mid-term Management Plan 2025, NEC is thoroughly promoting DX and has achieved certain results, such as advancing data-driven management. Furthermore, since the emergence of generative AI in 2023, NEC has been driving AI transformation (AX), leveraging its core AI technology “NEC cotomi,” as well as solutions like OpenAI and Copilot, to achieve improvements in operational efficiency, decision-making support, and knowledge utilization across various domains. Rules and guidelines for AI utilization are also being established, and a group-wide AI utilization platform is being constructed within the NEC Group. These initiatives demonstrate NEC’s commitment to proving the value of its own DX efforts and to driving transformation for its customers and society as a whole.

1. Introduction

Through its Client Zero strategy, NEC positions itself as the first customer, proactively adopting and validating the latest technologies. By doing so, the knowledge and expertise gained through internal practice are fed back into the digital transformation (DX) of customers and society.

In promoting internal DX, NEC aims to realize One Data, One Place, One Fact, and has established the One Data Platform, which brings together the latest data technologies. By enabling everyone from management to employees to face facts using the same data, NEC has achieved data-driven management that leads to future-oriented actions. As a result, by centering on management cockpits and dashboards, data has been democratized, making rapid decision-making and proactive responses possible. 

This paper introduces NEC’s AI initiatives, which are being advanced internally based on this DX foundation.

2. AI Transformation (AX)

In response to the rapid advancement of generative AI in 2023, NEC is promoting AI transformation (AX) based on the data infrastructure established through internal digital transformation (DX) (Fig. 1). NEC is actively leveraging both its own core AI technology “NEC cotomi,” as well as external services such as Gemini, to achieve results in various areas including operational efficiency, decision-making support, and knowledge utilization.

To drive AX, NEC is advancing the use of generative AI with a focus on four pillars: (1) system development, (2) NEC’s AI research and technologies, (3) global strategic partnerships, and (4) culture.

2.1 System Development

In April 2023, NEC established its internal platform, the NEC Generative AI Service (NGS), in just two weeks, enabling employees to utilize generative AI safely and securely (Fig. 2). NGS provides features such as the selective use of safety-verified large language models (LLMs) and secure data utilization through retrieval-augmented generation (RAG) capabilities. Furthermore, by making these functions available as secure APIs, NGS can be safely leveraged not only by NEC’s internal systems and applications but also by partner solutions.

2.2 NEC’s AI Research and Technologies

NEC has been engaged in AI technology development from an early stage, and in recent years, took the lead in 2023 by developing and launching its core AI technology, NEC cotomi, ahead of other companies and announcing NEC AI Agent (Fig. 3) the following year. The AI technologies that make up these products and solutions are being evaluated internally and integrated into NGS. Going beyond simply applying products and solutions, NEC is practicing Client Zero at a deeper level by actively utilizing core AI technologies within the company through these initiatives.

2.3 Global Strategic Partnerships

Given the rapid pace of advancement in AI technologies, NEC is strengthening collaboration not only with its internal teams but also with global strategic partners such as Microsoft, Google, AWS, SAP, and ServiceNow. By doing so, NEC is able to quickly adopt the latest technologies internally and accelerate AI implementation. In parallel with internal utilization, NEC is also working on building consensus for business initiatives, advancing technical integration with NGS and NEC cotomi, and even taking on world-first challenges.

2.4 Culture

In order to promote the utilization of AI within NEC, fostering a culture around AI is a key factor (Fig. 4), in addition to systems like NGS and the application of technologies both inside and outside the company. To this end, NEC has established an internal marketplace called the AX Acceleration Hub for sharing AI-related knowledge and gathering ideas, and is promoting the cultivation of an AI culture through events such as AI utilization contests.

3. AI-Driven Business Transformation

At NEC, alongside the evolution of NGS, global strategic partnerships, and the rise of AI agent technologies, we are promoting AI-driven business transformation, particularly focused on staff operations (Fig. 5). Rather than partial business improvements using AI as in the past, we are advancing fundamental business reforms by leveraging AI agents.

AI-driven business transformation is promoted through seven key themes: management, sales, BPO, risk, HR, SI/IT operations, and security. Within just six months of launching this initiative, approximately 65 AI-driven business transformation projects have been running simultaneously. Of these, 14 projects have gone live and are being applied to actual business operations, steadily advancing business transformation through AI. Furthermore, investment decisions for AI agents are managed through portfolio management, considering both business contribution and feasibility, and this information is published on an internal company dashboard (Fig. 6).

4. Conclusion

In this paper, we introduced examples of digital transformation (DX) at NEC driven by the Client Zero strategy, as well as subsequent cases of AI transformation (AX). In the cases presented, NEC has steadily achieved results by promoting fundamental business transformation through AI—ranging from establishing systems to leverage generative AI to cultivating an organizational culture that embraces AI—and by effectively managing outcomes. Going forward, we will further advance both our internal and external ecosystems to transform into a truly AI-native company.

We will also continue to share the practical knowledge we have gained in various digital and AI domains with our customers and society, thereby contributing to the creation of sustainable value.

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