Hiro Onishi

With the mission of “turning the latest technology into a reliable workforce,” Hutzper Inc. (Hutzper) provides AI solutions mainly for the manufacturing sites of small and medium-sized companies. The company name comes from the Hebrew word “hutzpah,” which is said to mean “seeing things through boldly yet carefully.” We spoke with Representative Director and CEO Hiro Onishi, who wants never to forget the spirit of the word, encountered while staying in Israel with dreams of starting a business.

AI recognizes images and vibrations to find product defects and machine abnormalities

Among manufacturing sites struggling with labor shortages, inspection processes in particular have had to rely not only on visual checks but also on craftspeople’s experience and senses, such as sound and vibration, and small and medium-sized companies struggle to secure staff. Our service automates these processes, which people have done until now, by having AI recognize and learn from images and vibrations.

We develop AI that is “fast, affordable, and skillful”: responding quickly to clients’ needs and keeping installation costs down, while providing equipment that is immediately effective on site.

We have two main services. One is Mekiki Byte, in which AI automatically judges images taken by a camera and detects defective products. By having AI carry out the visual inspections that people have done by eye, stable, highly accurate inspection is possible without oversights or inconsistent standards.

The other, Shindo Daijin, uses sensors to detect the vibrations of machine tools, mainly for cutting, and detect abnormalities. AI detects blade wear and breakage and machine malfunctions, and sends a stop signal to the machine when something is wrong. By making visible what used to depend on craftspeople’s “intuition,” it not only reduces the burden on workers but also leads to better quality, unmanned operation at night, and the use of accumulated data.

As a further application, we are also running demonstration trials that film workers on site with cameras and analyze their behavior to review staffing, reduce labor, and optimize movement. We are now continuing development toward a full launch of the service.

Monthly subscriptions keep initial costs low and make it easy for small and medium-sized companies to adopt

Japan’s birthrate will keep falling and its population keep aging, and the working-age population will shrink further. At the same time, Japan is a world-renowned manufacturing nation, with manufacturing accounting for 20% of GDP, most of it by small and medium-sized companies, which face chronic labor shortages.

It would be a shame to lose the technical capabilities of the small and medium-sized manufacturers that support Japanese industry because of labor problems. Our mission is to solve this with AI technology.

For small and medium-sized manufacturers, introducing AI is a big investment. To lower that hurdle even a little, all our products are monthly subscriptions. This keeps initial costs down so companies can start using them with peace of mind. Almost all the companies that have actually introduced our services have praised them for their high inspection accuracy and cost-effectiveness.

We are currently researching needs in overseas markets as well. In 2023, we exhibited twice at trade shows in Thailand and felt a good response. We want to expand even more actively from here.

Forming a team for each site and building original systems

Hutzper is a startup I founded with two colleagues, Kota Kurose (Director and COO) and Kazuki Yumiba (Director and CTO). We studied engineering at the same university, and with Kurose in particular, I would come up with business ideas and talk about our dream of starting a company from our student days. After graduating, we each went into jobs or research, but we kept exchanging information regularly and exploring business possibilities.

I joined a manufacturer of semiconductors, circuit components, and other products, and often visited manufacturing sites in Japan and abroad for inspections and training. Feeling firsthand the labor shortages on site and how hard it is to systematize work there could be called the origin of Hutzper.

After that, I kept searching: I changed jobs, stayed in Israel, a startup powerhouse, visiting local startups and attending events where VCs gathered, and my desire to start a business grew stronger.

That was when the vision of “bringing AI solutions to the sites of small and medium-sized manufacturers in the regions” came into view. I wanted to support Japan’s manufacturing sites by spreading AI technology to small and medium-sized manufacturers.

We now have 45 employees. Each has a mission and works by making use of their own skills. While most AI startups are based in the Tokyo area, our company is based in Osaka, a city of manufacturing, and develops AI specialized in inspection at manufacturing sites.

We form a team, build an original system while listening to voices from the site, and handle everything through installation. This is Hutzper’s strength, and we are proud to be one of a kind. True to our company name, we want to keep creating solutions “boldly yet carefully” that truly help customers with their problems.

How We Used OIH

I visited OIH even before starting the company to gather information on pitch events and VCs. In 2021, winning the Osaka Prefecture 14th Business Plan Contest “Dream DASH!” led me to present at “Umekita Pitch.” In 2023, we exhibited on a panel as a notable Osaka startup at “SWITCH 2023,” one of Southeast Asia’s largest innovation exhibitions, in Singapore. We have truly been given many opportunities.