The Future of Work at NEC: Humans Think, AI Does (Mostly Everything Else)

12/23/24

Editorial team at Bits with Brains

NEC Corporation, a global technology powerhouse, has successfully embarked on a transformative mission to integrate generative AI into its day-to-day operations and business strategy

Key Takeaways

NEC’s proprietary LLMs have streamlined HR and accounting processes, cutting document creation time by 50% and reducing system development man-hours by 80%.
The company’s three-phase generative AI strategy aims to expand from individual business models to industry-wide solutions.
NEC projects $346 million in revenue by 2025 from its generative AI services while addressing challenges like data security and energy efficiency.
The introduction of scalable, secure AI environments highlights NEC’s commitment to innovation across sectors such as healthcare, finance, and manufacturing.

Implementation: Generative AI in Workforce Operations

NEC Corporation, a global technology powerhouse, has successfully embarked on a transformative mission to integrate generative AI into its day-to-day operations and business strategy. NEC’s innovative use of proprietary large language models (LLMs) to revolutionize internal processes, address industry challenges, and position itself as a leader in generative AI solutions has started to pay off.

NEC's generative AI journey began with the launch of its proprietary LLM in May 2023. Designed specifically for Japanese businesses, this model features high proficiency in Japanese language processing and operates efficiently on standard GPU servers. With a compact size of 13 billion parameters—contrasting with OpenAI’s GPT-4 at over a trillion parameters—NEC’s LLM is optimized for cost-effective deployment without sacrificing performance. It’s indicative of a trend towards utilizing smaller specialized low latency models.

The company’s broader strategy includes scaling these capabilities through initiatives like the "NEC Generative AI Service" and "Generative AI Advanced Customer Program." These programs offer tailored LLMs, consulting services, and secure environments to external clients. NEC projects that these efforts will generate 50 billion yen ($346 million USD) in revenue by 2025.

NEC has successfully integrated generative AI across multiple internal functions:

HR Transformation: Generative AI automates resume screening, onboarding processes, and performance evaluations. By analyzing resumes against job requirements and generating personalized training modules, NEC has streamlined hiring while enhancing employee engagement.
Accounting Automation: Routine tasks such as data entry and financial report generation are now automated, significantly reducing manual efforts.
Document Creation: The time required for document drafting has been halved. For instance, meeting minutes that previously took 30 minutes are now generated in just five minutes.

Collectively, these advancements have led to an 80% reduction in man-hours for internal system development tasks. This efficiency boost has freed employees to focus on higher-value activities such as strategic planning and innovation.

Measurable ROI

NEC’s adoption of generative AI has already delivered substantial returns:

Time Efficiency: Automation of repetitive tasks allows employees to redirect their efforts toward strategic initiatives.
Cost Savings: Reduced man-hours translate directly into lower operational costs.
Productivity Gains: Streamlined workflows have minimized delays and elevated overall efficiency across departments.

Addressing Challenges

NEC had to overcome several challenges during its generative AI implementation:

Data Security: By leveraging its own data centers and on-premises solutions like the NEC Inzai Data Center, NEC ensured robust protection against information leakage.
Customization: Proprietary LLMs were fine-tuned for specific business applications, addressing the limitations of generic models.
Energy Efficiency: To mitigate GPU shortages and rising power consumption associated with AI systems, NEC developed technologies that double GPU computational efficiency while reducing energy usage.

Expanding Horizons: Industry Applications

NEC is now extending its generative AI expertise beyond internal use to now transform industries such as healthcare, finance, manufacturing, and local government:

Healthcare Innovation: Collaboration with Tohoku University Hospital demonstrated how NEC’s LLM could reduce medical document creation time by 50%, alleviating administrative burdens on healthcare professionals.
Manufacturing Optimization: By integrating generative AI with sensing technologies, NEC enables real-time quality control and predictive maintenance in production lines.
Finance & Local Government: Tailored LLMs streamline operations like regulatory compliance reporting and citizen service management.

NEC’s three-phase strategy for generative AI adoption includes:

Developing company-specific models tailored to individual needs.
Integrating these models into comprehensive business packages.
Partnering with organizations to co-develop scalable industry solutions.

Broader Implications for Workforce Transformation

NEC’s success exemplifies how generative AI can redefine workforce roles and drive organizational change:

Reskilling Opportunities: Automation frees employees from repetitive tasks, enabling them to upskill for roles requiring creativity and critical thinking.
Democratized Workflow Redesign: Generative AI empowers employees at all levels to innovate by reshaping workflows collaboratively.
Sustainability Goals: Energy-efficient technologies developed by NEC align with global sustainability objectives while maintaining high performance.

Future Outlook

NEC continues to enhance its generative AI capabilities with plans for a large-scale model featuring 100 billion parameters by 2024. This new model aims to outperform current benchmarks while maintaining energy efficiency—a critical factor given the growing demand for generative AI solutions globally.

The company is also exploring partnerships through programs like the LLM Risk Assessment Project with Robust Intelligence. These collaborations ensure that NEC’s solutions meet global standards for security and reliability.

NEC’s integration of generative AI is a useful blueprint for workforce transformation in the AI-enabled digital age. By aligning advanced technology with specific business needs, the company has achieved measurable results while setting an example for others to follow. As generative AI evolves further, its potential to reshape traditional workforce models will only grow more significant.

FAQs

1. How does NEC ensure data security with its generative AI solutions?

NEC uses its own data centers like the Inzai Data Center to provide secure environments that minimize risks associated with cloud-based solutions.

2. 2. What industries can benefit from NEC’s generative AI?

Healthcare, finance, manufacturing, local governments, and more stand to gain from tailored applications of NEC's proprietary LLMs.

3. What makes NEC's LLM unique?

Its lightweight design enables deployment on standard GPU servers without compromising performance. It also features high proficiency in Japanese language processing.

4. How does automation impact employees at NEC?

Automation allows employees to focus on strategic roles requiring creativity and problem-solving while reducing burnout from repetitive tasks.

5. What are NEC's future goals for generative AI?

By 2025, NEC aims to generate $346 million USD in revenue through scalable industry solutions while advancing energy-efficient technologies for sustainable growth.