Around 20 leading Japanese manufacturers are set to form a consortium aimed at commercializing physical artificial intelligence (AI) systems to operate industrial robots in factories and other facilities, according to sources familiar with the matter. The collaboration, involving companies such as Kyocera Corp and Kobe Steel Ltd, is scheduled to begin in October and is expected to span approximately four years.

Central to the initiative is the joint development of machine-tool robots that utilize AI created by Arum Inc, a software firm based in Kanazawa, central Japan. The project will leverage Arum’s AI-equipped automated machine tool, known as TTMC, which employs proprietary AI trained on extensive data related to metal and resin processing. This technology enables the instant generation of machining processes directly from blueprints, allowing robots to cut materials accordingly. TTMC is designed to enhance production efficiency, particularly in high-mix, low-volume manufacturing environments.

Currently, TTMC supports processing small components, but the consortium plans to expand its capabilities to handle medium- to large-sized complex parts, targeting applications in construction machinery and semiconductor manufacturing equipment. Participating companies will train the AI by repeatedly operating TTMC in their own machining processes, thereby collecting critical data to improve the system.

Beyond research and development, the partners intend to integrate the advanced AI-driven machine tools into their respective factories as well as those of their business partners. The alliance also includes Nidec Machine Tool Corp and a company affiliated with Sojitz Corp, one of Japan’s major trading houses. Microsoft Corp’s Japan division is expected to join as a supporting partner for Arum’s AI efforts.

Arum, founded in 2006, specializes in developing automation systems for manufacturing. In the year ending June 2026, the company reported sales of approximately 7.4 billion yen (about $46 million) and employs around 40 people.

Separately, SoftBank Corp and NEC Corp have launched Noetra Corp in Tokyo, a new venture focused on bringing “real-world native AI” into practical application by fiscal 2030. This development aligns with Japan’s broader government strategy aiming to stimulate combined public and private investments totaling 370 trillion yen by fiscal 2040. The plan targets advances across 17 key sectors, including semiconductors and artificial intelligence, as part of efforts to drive economic growth and enhance national security.