Hitachi Supports Municipal Policy Planning with AI and Future Scenario Simulation Technology

Hitachi, Ltd. (hereinafter referred to as Hitachi) has officially launched an initiative today to support municipal policy planning for complex social challenges using AI and Hitachi’s proprietary future scenario simulation technology.

In this initiative, Hitachi first models the causal relationships between indicators (causal relation model) based on municipal-specific policy considerations such as population, tax revenue, environment, and welfare, as well as past KPI data and survey data from residents and employees. Based on this model, Hitachi runs approximately 20,000 simulations using its unique future scenario simulation technology. AI analyzes and visualizes how the town's future will change when multiple policies are combined, such as "prioritizing child-rearing support" or "prioritizing industrial promotion." It can also specifically indicate future turning points and key events, such as "2030 will be an important turning point for decision-making." Municipalities can use these visualized scenarios to analyze and compare options, thereby examining the direction of high-level plans such as comprehensive plans and specific measures.

Furthermore, this can be utilized to review policies that have already been formulated or are currently being implemented. Since the causal relation model can be used while being revised, it reduces the burden on municipalities in data collection and simulation implementation.

Throughout this process, Hitachi conducts workshops with municipal employees to provide hands-on support for selecting indicators, building causal relation models, and interpreting simulation results. In addition, Hitachi collaborates with partner companies possessing expertise in municipal plan formulation and DX support to assist in incorporating measures and building consensus within the organization. By doing so, Hitachi supports municipalities in examining highly effective policies, creates an environment where staff can grasp issues more personally and promote policies, and contributes to the realization of Evidence-Based Policy Making (EBPM) and better community development.