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DMM.com to examine application of AI via collaboration with Waseda University

Maria Nikolova

The particular focus of the collaboration will be the use of AI-based technologies in areas like illegal transaction detection, financial transactions, and quality assurance.

The push of Japan’s financial companies into artificial intelligence (AI) is barely surprising to anyone familiar with the heavy workload and the strict discipline required of staff in these companies. A growing number of companies have underlined the trend of AI-related research in Japan. The latest example in this respect comes from DMM.com Inc – an online services provider and owner of retail Forex broker DMM FX.

Earlier today, DMM.com announced it will partner with Waseda University in the area of AI research. DMM.com amd Waseda Research Institute for Science and Engineering are jointly opening a research lab that will be engaged in the research and development of various AI-based technologies using processes like machine learning, deep learning, and quantum annealing.

Specifically, the lab will aim to apply the new technologies to real-life areas. The focus will be on recommendations, illegal transaction detection, financial transactions, quality assurance (QA), image recognition, and so on. Work with big data will be crucial.

In line with this trend, last week, Japan Exchange Regulation (JPX-R) and Tokyo Stock Exchange, Inc. (TSE) announced they started applying AI to market surveillance operations in order to detect misconduct such as market manipulation.

JPX-R and TSE said they would be deploying two AI solutions: NEC Corporation’s “NEC Advanced Analytics – RAPID machine learning” and Hitachi, Ltd.’s “Hitachi AI Technology/H”. These technologies have been supplied with a store of knowledge previously used in operations by surveillance personnel to evaluate irregularities in trade activity for preliminary investigations.

The new AI technology enables surveillance personnel to complete preliminary investigations more quickly and to focus on detailed investigations. While the final decision on conducting such investigations will continue to be made by surveillance personnel, this initiative facilitates more in-depth and detailed investigations and is expected to improve their market monitoring functions, thereby protecting the fairness and credibility of the TSE market.

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