Accenture and Infroneer Launch AI-Powered JV to Transform Japan's Infrastructure

Accenture (NYSE: ACN) and Infroneer Holdings have joined forces to establish a joint venture (JV), INFRONEER Strategy & Innovation, aimed at addressing critical issues in Japan's aging infrastructure and promoting innovation. The JV, set to launch on April 1, 2025, will focus on enhancing productivity, increasing revenue, and accelerating the adoption of data-driven models through advanced digital technologies. With INFRONEER HD owning 81% and Accenture owning 19% of the JV, the partnership brings together the expertise of both companies to tackle Japan's infrastructure challenges.



Japan's infrastructure, including roads, airports, water supply, and sewage systems, has been facing numerous serious accidents and financial constraints due to aging facilities and a declining population. The JV plans to take a leading role in addressing these issues by applying advanced digital technologies, such as AI, across the INFRONEER group. This will enable the acceleration of data-driven models, from optimizing IT operating costs and strategic IT investments at the management level to improving productivity at construction and infrastructure operation sites.

The JV will pursue these initiatives through a multifaceted approach, supporting the creation of new businesses as a strategic think tank, driving business reform through data analysis, and managing continuous digital transformation. By cultivating specialized talent and managing IT investments and governance across the INFRONEER group, the JV will be well-positioned to contribute to the creation of new businesses and the continuous digital transformation of the infrastructure industry in Japan.

One of the key initiatives of the JV is implementing a data-driven management model. The JV will shift INFRONEER group's current business management model to one that is data-driven, based on scientific evidence, and leverages AI and other technologies to enhance management decisions. By building a digital platform that links data such as personnel, costs, and processes across the entire value chain, the JV will create a management cockpit that visualizes aggregated data. This will enable better allocation of human resources and costs, leading to improved efficiency and productivity.

Another crucial aspect is improving productivity on construction sites. The JV aims to enhance productivity through the use of digital technology and increased funds for wages, making the INFRONEER group and the industry more attractive and enhancing sustainability within both. For instance, the joint venture will implement a system that combines 360-degree camera and BIM (Building Information Modeling) technology to reduce the burden of reinforcement inspections, which account for about 10% of working hours on construction sites. Additionally, the JV will develop and deploy solutions to make time-intensive estimation work more efficient and explore the possibility of proposing next-generation facilities that result in labor reductions and unmanned operations in manufacturing and logistics sites.

Lastly, the JV will focus on improving efficiency and quality in infrastructure operations. For infrastructure such as roads and public facilities owned by municipalities, the JV will propose and promote efficiency through private sector knowledge and digital technologies. By applying advanced digital technologies, including AI, across INFRONEER group, the JV will improve efficiency and quality in infrastructure operations, resulting in better-maintained and safer infrastructure, ultimately enhancing productivity and reducing operational costs.

In conclusion, the Accenture and Infroneer joint venture, INFRONEER Strategy & Innovation, is poised to transform Japan's infrastructure landscape by leveraging AI and digital technologies. By addressing critical issues and promoting innovation, the JV will enhance productivity, increase revenue, and accelerate the adoption of data-driven models, ultimately contributing to the continuous digital transformation of the infrastructure industry in Japan.