In 'Entrepreneurial Spirit,' we delve into the reasons people started their businesses, the initial challenges they faced, and their aspirations for the future.

In our 47th installment, we spoke with Tatsuya Itai, CEO of secondz digital Inc., along with insights from Kota Tanahashi, JAFCO’s investment professional in charge, and Masanori Hashimoto from the Business Development Division, about the challenges and future prospects of the company’s business.

【Profile】
Tatsuya Itai, CEO, secondz digital Inc.
Tatsuya Itai graduated from Tohoku University’s Department of Electrical, Information and Physics Engineering. He started his career as an engineer at GREE. At en Japan, he spearheaded the creation of the career website AMBI for young high-potential professionals, serving as product manager and business planner. Later, at PKSHA Technology, he led the business operations for an internal inquiry automation SaaS for large enterprises. In 2019, he founded secondz digital Inc.

About secondz digital Inc.
As a partner for corporations in their transformation into "AI-native companies," secondz digital develops, consults on, and supports the adoption of secondz AI agents using generative AI, large language models (LLMs), and agent technologies. Even before generative AI and LLM technologies became widespread, the company focused on enterprise businesses with over 1,000 employees, achieving significant outcomes such as replacing 100 hours of work per salesperson annually.

Supporting enterprise transformation through generative AI agents

─ Could you give us an overview of your business of transforming companies into "AI-native companies"?

Itai We develop AI agents, which automate various business processes of companies, and provide consulting and support for their integration. An AI agent is a system combining multiple AI models to execute complex tasks. By autonomously handling tasks previously performed by humans, it offers significant operational efficiency.

Currently, our focus is on introducing this technology into the B2B sales domain for enterprises. For example, at one company with thousands of employees, we automated the creation of sales materials using AI agents, saving 100 hours per sales person annually. With 500 sales personnel, this amounts to 50,000 hours saved across the company annually, allowing them to dedicate more time to client interactions and transforming their business practices.

─ Why did you start with the B2B sales domain?

Itai AI can’t perfectly achieve 100% accuracy in tasks, making it less suitable for fields like accounting or legal work where precision is critical. Sales, on the other hand, involves approaches that vary between individuals, making it an ideal area for AI to assist or substitute effectively.

Moreover, sales directly contribute to a company’s revenue. Every business is keen to improve productivity in this area. As we foresee a future where interactions with clients shift from "human-to-human" to "human-to-AI agent," we’ve chosen to focus on B2B sales as a starting point.

─ Transforming organizations into AI-native operations requires human mindset shifts. What challenges do you face in adoption and integration?

Itai We often encounter concerns among employees about AI replacing their jobs. While some are eager to adopt it, others are more hesitant. This isn’t new. Similar reactions occurred when introducing new software in the past. But the resistance feels stronger now.

The key is to help them see AI as an ally, not an adversary, and to realize that delegating tasks to AI can be liberating. We prioritize substituting tasks that employees already struggle to cover or wish to delegate. The building up of positive experiences of people realizing that AI can be helpful is crucial for fostering coexistence with AI agents.

─ Please tell us what inspired you to start your own business.

Itai I’ve wanted to create businesses since university. My interest stemmed from debating significant global issues like Brexit during my university days. While those debates were intellectually stimulating, I realized in reality never be in the position to propose such things.

However, participating in a business contest gave me a taste of creating something tangible and impactful. The experience showed me the excitement of shaping my ideas and spreading them in the real world. I’ve likened this to Oasis’s Don’t Look Back in Anger, a song which became a major anthem in the UK. Just like that song resonates with thousands at music festivals, I wanted to create products or ideas that move independently and influence society.

─ After graduating, you worked at three IT companies before launching your AI business. What triggered this decision?

Itai Starting a company felt similar to changing jobs, so there wasn’t a single significant turning point. During my time at PKSHA Technology, I was involved in business development in the early days of AI business applications. Before that, I worked in HR tech, so when I founded secondz digital in 2019, I initially focused on HR tech.

The shift to AI agents came largely due to rapid advancements in AI technology. During my time at PKSHA, I worked on natural language processing and expected LLMs to emerge 10–15 years later. But they became a reality in less than five years. This transformative change in business assumptions convinced me to dedicate myself fully to this new endeavor.

The pace of technological progress has truly accelerated in recent years. For example, there’s a hypothesis that artificial general intelligence (AGI) with human-level intelligence could emerge in about three years, and even superintelligence beyond that might be developed within a decade. Our services are continuously updated to align with these advancements.

Prioritizing visionary insight in choosing a VC

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─ You raised approximately 150 million yen in seed funding from JAFCO in June 2024. Could you share the background of this?

Itai I first met Mr. Saka from JAFCO at a startup event in the fall of 2023, but our serious discussions about fundraising began afterward. As technology evolved and the possibilities for what we can do as a company expanded, securing funding became essential to make the greatest societal impact at the fastest pace. Internally, we often describe fundraising as acquiring a “ticket” to take on larger challenges.

─ Why did you choose JAFCO out of all the VC firms?

Itai While some startups approach dozens of VCs, we narrowed it down to four or five companies, including JAFCO, from the beginning. What we were looking for in selecting a VC wasn’t the fund size or support programs but their ability to perceive and analyze the broader societal landscape. We wanted to partner with someone who could foresee how society as a whole would change and how businesses and behaviors would evolve within it. When we met with Mr. Saka and Mr. Tanahashi from JAFCO, their perspective closely aligned with ours, so we decided at an early point to proceed with them.

─ Mr. Tanahashi, what was your impression of secondz digital as the investment professional in charge?

Tanahashi The generative AI market is often depicted in three layers: infrastructure, models, and applications” However, we believe a fourth layer, implementation, could be a key to success for Japan-based startups. Players who combine AI integration with some degree of human support to serve large corporations could flourish.

Among such players, those that excel will have strong “solution-providing capabilities.” Developing software that leverages generative AI, managing projects with large enterprises, and implementing AI into operations… few companies can do all of these, but secondz digital does. Mr. Itai, who established a consulting team at PKSHA, along with co-founder Mr. Nakamura and other team members, brings expertise in development, consulting, and implementation. This comprehensive strength was the most compelling factor for our investment.

─ What kind of communication took place with JAFCO during the investment process?

Itai We had discussions with Mr. Saka and Mr. Tanahashi over a period of more than six months. We must have had quite a few discussions.

Tanahashi Yes, that's right! I think it was a bit unusual. Normally, we would discuss business plans and financials, but this time, we wanted to align on the future social trends and their certainty, based on the generative AI market and business stage.

Itai When considering the mid-to-long-term relationship between a VC and a startup, it’s very important for both sides to align on the direction. I shared that understanding, so I never found the numerous discussions uncomfortable.

─ So, you shared a common understanding in this regard. After the investment, you’ve been receiving support from the Business Development Division. Could you tell us about the kind of support you’re receiving?

Itai We are currently receiving support in sales and HR. The sales support has been especially helpful. JAFCO has strong channels with domestic enterprise companies, and companies we wouldn't normally have contact with are joining our webinars and showing interest in us. The richness of their channels was one of the reasons we wanted to receive investment from JAFCO, but we are already experiencing more benefits than we initially expected.

─ Mr. Hashimoto, you are in charge of business development support. What do you see as the appeal of secondz digital?

Hashimoto From the perspective of a sales employee on the ground, an AI agent that can delegate their tasks is something they absolutely want to make use of. I often interact with sales professionals at large corporations, and when I talk about secondz digital, they are usually very interested. While AI can often seem distant, secondz digital’s strength is that it can offer a concrete image to companies that want to utilize AI in the near term. I feel the potential of the business moving forward.

─ What is your impression of Mr. Itai as a CEO?

Hashimoto Actually, I was a colleague of Mr. Itai during his time at GREE. Back then, I felt he was more knowledgeable about products than business. But watching him as he transitioned to new business development and AI areas, I realized he is a person with a very strong curiosity. I knew he had started a business, but I never expected we would work together again.

Tanahashi Mr. Itai is very logical, but on top of the solid foundation built on obvious logic, he has a visionary, exciting ambition. He’s attractive even from an investor’s perspective, and I believe that kind of entrepreneur naturally attracts talented people who want to make a better society. In fact, the core members of the team are all people with charm similar to Mr. Itai, and I feel the strength of the organization.

The thrill of advancing society in the world’s most exciting domain

─ What kind of society do you want to create by increasing the number of "AI-native companies”? Could you share your outlook?

Itai Japan's population decline is a future that has already been confirmed. The gap between countries like the United States, where the population is growing and AI utilization is advancing, and Japan will continue to widen if things stay as they are. It is essential for Japan’s future to create systems where AI agents can replace work and drive workplace reform, allowing people to focus more on essential activities.

Our company’s mission is "Advancing humanity every second." Through our business, we aim to increase the value of individuals in corporations from various angles, and by doing so, enhance the value of society as a whole. To achieve this, we need to grow into a company that can create social impact. In the current market with many white spaces, doing "the right things from inception" leads to results, more than relying on outlandish strategies. So, we will continue to diligently and at top speed pursue our legitimate efforts.

─ As the business grows, the organization will also expand. What kind of people do you think will fit into secondz digital?

Itai Since we are working on creating a new society, we emphasize curiosity. When we were talking about recruitment within the company, I found it interesting when someone said, "If you ask one question in an interview and get ten answers, that’s typical of secondz digital." Indeed, many people are passionate about exploring their interests to the fullest and sharing that passion.

Everyone here is inherently a good person, so I think the atmosphere in the office is good. We genuinely enjoy our work, and though it may be rare these days, we actively participate in client dinners and company socials. Whether one fits into that culture is also important.

Tanahashi It’s interesting how, even though you are an AI-native organization that works remotely, you value real human interactions so much. Mr. Itai and the others always seem to be having fun.

─ The phase you’re in right now, challenging to build a new society in a new market, must be motivating for everyone. Finally, could you tell us what makes secondz digital appealing from a recruitment perspective?

Itai Yes. Being able to work during a major momentum of social change, as the market for AI agents is emerging, is a huge motivation. Working on projects with Japan’s major corporations in the world’s most exciting field of AI agents is a rare opportunity. I’d be glad if anyone reading this article develops an interest in us.

Tanahashi Secondz digital is definitely leading the charge in the implication field of AI agents. If you see the potential of generative AI and want to provide solutions, you’ll be part of some truly exciting moments.

Hashimoto In a growing industry, with a not yet large company size of about 15 employees, the company is made up of excellent and personable people. The fact that it offers three key points on how interesting it would be to join now is a huge appeal. If you’re interested, don’t miss this opportunity. Challenge yourself!

▶️ Click here for information about employment opportunities at secondz digital.

Comments from the investment professional in charge, Kota Tanahashi

The breakthrough brought by generative AI has enabled software development and operation using natural language. As a result, industries and business operations unique to specific companies—where traditional software investment often failed to deliver sufficient ROI—are expected to see rapid advancements in efficiency and optimization. The AI agents offered by secondz digital are designed for Japan’s leading large enterprises. They not only offer the latest technology but also review ideal business processes and provide customized AI agents for each company.