The Rise of In-House AI: Insights from Shohei Hido of Daikin Industries

The rapid integration of artificial intelligence (AI) across industries is undeniable. More and more companies are recognizing the power of AI to optimize processes, drive innovation, and improve efficiency. Shohei Hido, a key figure in the AI startup world and now an executive at Daikin Industries, exemplifies this shift. Having transitioned from Preferred Networks, an AI development startup, to a prominent global corporation, Hido’s career is a testament to the growing wave of AI in-house development.

Shohei Hido’s Unique Career Path

Shohei Hido, 43, was previously the executive officer at Preferred Networks, a Tokyo-based AI startup. Known for its cutting-edge work in AI, Preferred Networks has made significant strides in the field. In 2023, Hido made a remarkable shift to Daikin Industries, a global leader in air conditioning and environmental systems, where he now manages AI-related projects.

His move to Daikin, which may seem like an unusual leap from the startup world to a traditional manufacturing giant, was fueled by his belief that “AI is moving toward in-house development.” According to Hido, more companies, especially large enterprises, are realizing the immense value of developing AI capabilities internally rather than relying on external vendors.

Hido’s background in AI research began when he joined IBM Tokyo Research Laboratory as a new graduate. He later moved to Preferred Networks, where he worked on high-profile projects, helping to lead the company toward unicorn status, meaning it was valued at over $1 billion. This experience gave him deep insights into the AI industry’s potential and its evolution.

Daikin’s Vision for AI Integration

At Daikin, Hido is at the forefront of pushing AI innovation in areas traditionally not associated with technology development. While Daikin is known for its HVAC (heating, ventilation, and air conditioning) solutions, Hido believes that AI can be integrated into every aspect of the company’s operations, from optimizing production processes to enhancing product offerings.

His role now focuses on identifying AI’s potential applications within Daikin’s vast network of products and services. By developing AI systems internally, Hido aims to help the company remain competitive in a rapidly changing technological landscape.

This move reflects a larger trend in the business world where AI is no longer just a tool for tech companies. Traditional industries are seeing the value of having AI expertise within their teams to drive innovation and create competitive advantages.

What Undercode Says:

The shift from external AI vendors to in-house development is a strategic decision that more companies, particularly large corporations, are beginning to embrace. The benefits of internal AI teams are manifold.

First, building AI capabilities within the company allows for a more tailored approach. External vendors often offer generalized solutions, which may not perfectly align with a company’s specific needs. Having an internal team allows for a deeper understanding of business operations and the creation of AI models that are more fine-tuned to these needs.

Second, in-house development fosters innovation. When AI experts are embedded within the company, they have the opportunity to work closely with various departments, providing insights into areas where AI could have the greatest impact. This collaboration can spark new ideas and approaches that wouldn’t be possible with an external vendor who doesn’t have the same level of integration into the company culture.

Lastly, internal AI teams allow for greater control and security. Data privacy and intellectual property are critical concerns for many companies. By developing AI internally, businesses can ensure that sensitive data stays within the organization and is not exposed to third-party risks.

Hido’s transition from Preferred Networks to Daikin reflects these trends and highlights the growing importance of AI in industries beyond tech. Daikin’s commitment to AI-driven innovation under Hido’s leadership demonstrates how even traditional sectors are adapting to the technological revolution.

As more companies look to harness the power of AI, the trend toward in-house development is likely to continue. With this shift, we may see even more industries tapping into AI’s potential to revolutionize their operations and create new value propositions for their customers.

Fact Checker Results:

Shohei Hido’s career transition from a startup to a major corporation is backed by his experience and insights into the AI industry.
The idea of in-house AI development is gaining traction across industries, with more companies realizing its benefits.
Daikin’s efforts to incorporate AI into its operations reflect a broader trend of traditional companies embracing AI as a critical business tool.