In the race to dominate physical AI, flashy models aren't the only game in town. While OpenAI and Google scale their multimodal giants, Hitachi is quietly making a compelling case for institutional knowledge. It's not enough to have a great model. understanding the machinery and systems those models control is important. The container doesn't care about your consensus mechanism.
Unlocking the Power of Industrial Expertise
Hitachi's strategy revolves around its deep-rooted experience in industrial systems, a important edge in the growing field of physical AI. When machines are expected to ities of the real world, institutional knowledge becomes a vital asset. Kosuke Yanai, the deputy director at Hitachi’s Centre for Technology Innovation, underscores this. He argues that without a foundational understanding of physics and industrial equipment, physical AI remains theoretical.
Hitachi isn't just talking. it's executing. The company’s thermal fluid simulation and signal-processing tools are products of its extensive history in building railways and power infrastructures. This isn't just about AI. It's about marrying AI with decades of proven industrial expertise.
Real-World Deployments Prove the Point
Hitachi's work with partners like Daikin and JR East showcases the practical application of its philosophy. With Daikin Industries, Hitachi deployed an AI system that diagnoses malfunctions in air-conditioning manufacturing equipment. It’s the kind of operational intuition that was once only in the heads of seasoned engineers, now accessible through AI.
Similarly, in collaboration with JR East, Hitachi developed a system for managing Tokyo's complex railway network. Identifying the root cause of malfunctions in control devices, the system helps speed up responses to disruptions, which is critical when delays affect millions of journeys each day. Enterprise blockchain is boring. That's why it works.
R&D Breakthroughs Accelerate Progress
Hitachi's push into physical AI isn't limited to current deployments. The company's recent research highlights its efforts to cut development time, a critical bottleneck in industrial AI. In the automotive sector, for instance, Hitachi's use of retrieval-augmented generation reduced integration testing man-hours by 43%. This is a significant efficiency boost, especially in an industry where time is money.
In logistics, Hitachi modularized robot control software to adapt to new environments without starting from scratch. This variability management technology reduces the need for constant rewriting, making it easier to apply AI across different warehouse settings.
Why Safety is Non-Negotiable
Hitachi's approach to safety sets it apart. Safety isn't an afterthought. It's integrated into every system as a foundational requirement. By ensuring AI outputs don't deviate from pre-approved parameters, Hitachi reduces risks. Physical AI failures aren't theoretical. They happen in the real world, where consequences can be dire if not managed properly.
The question isn't whether Hitachi's emphasis on domain expertise makes sense. It's whether the rest of the industry can afford to ignore it. As Hitachi’s deployments with Daikin and JR East show, the value of deep operational knowledge is becoming harder to dismiss.



