Interview
Navigating the Frontiers of AI in Manufacturing with Hutzper

In the ever-evolving landscape of artificial intelligence (AI), companies are racing to bridge the gap between cutting-edge technology and practical, on-the-ground application. Hutzper Inc., a Japanese startup founded in April 2020, stands at the forefront of this movement. With a mission to transform the labor-intensive sector of manufacturing, we recently sat down with Hiro Onishi, the founder and CEO of Hutzper Inc., to delve into the company's origins, its unique on-site capabilities, future plans, and the future of AI in the manufacturing industry.

Hutzper was born from the collaborative efforts of three individuals from Hiroshima University in April 2020. Our primary goal is to harness AI's potential to revolutionize manufacturing sites, addressing the challenges posed by a shortage of manpower. We aim to translate the latest AI technology into a reliable workforce, particularly focusing on the labor-intensive aspects of manufacturing.

Our flagship service, "Mekiki Baito," is a SaaS offering priced at 98,000 JPY per month. It automates visual inspections, a crucial component of product quality control. Beyond this, we offer various AI analysis services, ranging from machine tool vibration monitoring to skill management for blue-collar personnel and optimization of shelf placement.

"Hutzper," derived from Hebrew, encapsulates the qualities of being "bold" and "persistent." These attributes are crucial in the entrepreneurial journey, as we navigate the complexities of the startup world. Osaka was strategically chosen due to its concentration of manufacturing industries, with over half of our clientele currently located in the Kansai region, predominantly Osaka.

"Mekiki Baito" finds application in diverse manufacturing sectors, excelling in inspecting products on conveyor belts. This tool has proven particularly valuable in food factories and automobile parts manufacturing, showcasing the versatility of our AI solutions.

Our competitive edge lies in our on-site capabilities. We go beyond traditional AI implementation by stepping directly into our customers' manufacturing sites. From addressing challenges in visual inspection optimization to resolving on-site issues during equipment installation, we provide end-to-end support as a single entity.

On-site challenges are inevitable when installing complex AI equipment. Our strength lies in working collaboratively with customers to resolve these challenges directly on-site. This approach ensures a seamless transition from hardware construction to data collection, AI model development, and post-implementation operational support.

Our dedication to on-site support has been pivotal in building trust with customers. We adapted our approach based on past experiences, realizing the importance of wearing work clothes instead of suits during site visits. This change significantly improved our credibility, allowing us to establish trust, receive valuable feedback, and collaborate effectively.

With an acute awareness of the urgent need for Digital Transformation (DX) and solutions to address labor shortages in Japan's manufacturing industry, Hutzper is set on solidifying its presence in the home market. Hiro emphasizes the importance of standardizing visual inspections and making inspection results visible. Challenges such as misalignment between laws, regulations, and on-site practices are also on the company's radar.

A notable highlight in Hutzper's journey involves the visit of Digital Minister Kono in October 2023. During this visit, opinions were exchanged on the critical collaboration between the public and private sectors. The insights gained from this interaction have played a pivotal role in shaping the company's strategies for addressing industry challenges in Japan.

Simultaneously, while consolidating its business in Japan, Hutzper is keen on expanding its footprint overseas. Targeting markets with robust cloud platforms and significant manufacturing sectors such as Thailand, Taiwan, and the United States, the company sees potential for growth. In particular, Thailand, with 30% of GDP attributed to manufacturing and rising labor costs, is identified as a promising market. The company has already received inquiries and participated in exhibitions, laying the groundwork for expansion.

To pave the way for their global expansion, Hutzper has actively taken part in various overseas programs facilitated by JETRO. For instance, they participated in an acceleration program organized by 10X Innovation Lab, aiming to broaden their business reach in the US. The company intends to capitalize on the support projects offered by JETRO, demonstrating their dedication to robust public-private partnerships and ensuring a smooth transition into new markets.