Japanese owned Aioi R&D Lab uses artificial intelligence and advanced data science to turn cutting‑edge academic research into real‑world commercial applications.

By combining Japanese expertise with British research excellence, the Lab is developing solutions to major global challenges and emerging risks, including those arising from AI data privacy, fraud, autonomous driving, ageing populations and supply chain disruptions.

Since 2020, Aioi has invested nearly £50M in Oxford-based AI and technology ventures.

Around 40 people are currently employed at its R&D Lab in Oxford, with its workforce expected to double by the end of the year, creating highly skilled roles in AI, data science and engineering.

Former chief scientific adviser Sir Patrick Vallance, during a media briefing in Downing Street on (Image: PA)

In April, the foreign secretary visited Japan to discuss opportunities to work on joint priorities, including economic growth.

Collaboration on fast‑growing technology sectors was also at the centre of conversations between prime minister Sir Keir Starmer and Japanese prime minister Sanae Takaichi this weekend.

During the visit, the leaders agreed a new UK-Japan Frontier Tech Partnership which will see British research translated into scalable technology with Japanese investment, from AI to robotics, quantum, space and defence tech.

The UK’s total bilateral trade with Japan is now worth £34.6 billion., with over 1,200 Japanese companies in the UK in 2022, providing over 150,000 UK jobs.

Minister for the Indo-Pacific, Seema Malhotra, said: “Aioi R&D Lab in Oxford is a powerful example of how the UK’s international partnerships support growth at home – attracting investment, creating high‑skilled jobs, and translating world‑class research into real‑world impact.

“By strengthening collaboration with Japan in priority sectors like AI and data science, this work supports our growth mission and reinforces the UK’s position as a partner of choice for global innovation.”

Originally launched as a partnership between Japanese insurer Aioi Nissay Dowa and Mind Foundry, an Oxford University spin-out, Aioi fully acquired the AI consulting business from Mind Foundry last year.

The Oxford Lab’s expansion has been backed by the UK Government, including support from the British Embassy in Tokyo, which has helped showcase its work to major Japanese corporates at a number of large-scale events.

Following introductions from the UK Government, Aioi has also invested in several other Oxford spinouts, including Natcap, a nature intelligence provider; OXA, a world-leading autonomous driving software developer; and Macrocosm, a complexity economics modelling company.

Junichi Ikagami, chief executive of Aioi R&D Lab, said: “One of the UK’s key strengths is its world-class AI and research capability.

“Combining this with our extensive client base across industries creates a powerful opportunity for innovation.

“Supported by the strong and stable relationship between the UK and Japan, we have successfully turned emerging technologies into real-world solutions, and we look forward to delivering even greater impact in the years ahead.”

UK science minister Lord Vallance said: “Aioi is demonstrating what is possible when you combine world-class British research with international expertise, and this expansion will bring a further boost to jobs and create opportunities for new spinouts in Oxfordshire.”

The next phase of retail growth will be won or lost on the industry’s ability to understand, anticipate and adapt to the needs of its changing customers, be they Baby Boomers, Gen X, Millennials or the Gen Zers who are re-writing the rules once again! The speed and scale of today’s demographic shift is unlike anything the UK retail industry has faced before. Here, Oscar Strachen, Digital Strategy Consultant at Columbus, explores three ways retailers can successfully navigate the generational crossroad: buyer profiling, understanding what matters most to each generation, and closing the back-office gap.

The retail sector has always been shaped by generational waves that bring distinct habits, expectations and priorities. Baby Boomers built the modern department store era and fuelled the introduction of credit, Gen X drove high-value spend, Millennials accelerated eCommerce adoption, and now Gen Z are rewriting the rules of discovery and loyalty as they’re set to become one of the main revenue drivers. Consumer confidence remains uncertain and digital-first platforms have shaped customer expectations. Today’s revenue is still driven by Gen X and Millennials, but within five years, retailers expect Gen Z to almost triple its contribution, drastically reshaping demand patterns. But is the retail industry ready?

A recent Columbus study, which surveyed 100+ senior UK retail leaders across eCommerce, multichannel, and store-led businesses, reveals a sector that is both acutely aware of its demographic pivot, yet under-prepared to act on it. Only six in ten retailers feel confident in knowing which generations dominate their customer base, with just 52% having faith in their systems to keep pace with the shifting behaviours. So how can retailers close this gap?

It’s time to bridge the consumer divide!

The future of retail success is not just about serving one generation better than another. True success requires retailers to build organisations and systems that can flex across generations. However, the study pinpoints silos, legacy technology and cultural inertia as the main barriers holding many retailers back. The challenge now is to bridge the gap between what the front-end promises and what the back-end can deliver to serve the generational reliability expectations. Only this way will retailers be able to build trust, loyalty and sustained profitability.

1. Power shifts at checkout – new buyers will hold the purse strings 

Currently, Gen X (42.2%) and Millennials (34.9%) are retail’s biggest revenue contributors, with Gen Z lagging behind at 9.2%, but in just five years, this outlook is set to change dramatically. Leaders expect Millennials to remain dominant (39.5%), while Gen Z is expected to almost triple its contribution (22.9%) and usurp Gen X. The increase in social commerce adoption (such as TikTok Shop) is a driver behind this shift in buying power, with 66% of Gen Z consumers using social media as a research tool. So how can retailers adapt their strategies to keep pace?

It’s important retailers learn to map today’s revenue by generation and channel. When trying to understand younger consumers, retailers can start by identifying stock-keeping units (SKUs) with high discovery and conversion. Retailers can appeal to more Gen Z consumers with unified commerce, which transforms many channels into one brand by pooling inventory, orders and customer context, allowing shopping journeys to be smooth from click to purchase.

2. Long-term loyalty cannot be locked in with short-term wins

Against a backdrop of rising cost of living and increasing housing costs, younger consumers are facing acute financial strain, with 80% of UK adults believing younger generations are worse off today than two decades ago. Yet despite this, one in five retailers hasn’t changed their strategies to reflect this financial reality.

Many retailers offer ‘buy now, pay later’ (BNPL) checkout alternatives, which appeal to Gen Z and Millennials. In fact, the FCA reports that 20% of UK adults regularly use BNPL. But while usage has significantly increased, BNPL sits squarely in the regulatory crosshairs as draft FCA rules increase affordability checks and greater transparency, which could dent conversion rates. So, retailers must proceed with caution and treat BNPL as a tool not a crutch – but what alternative strategies can retailers explore?

3. Address the back-office gap to achieve store-front success

Operational readiness remains a key challenge for retailers, 22.4% of retailers don’t differentiate operations by generations at all. Process-driven mindsets, disconnected marketing and a lack of shared metrics linking back office to CX reveal a significant disconnect.

In a tight market, where retail sales growth is modest, every broken promise is magnified, especially for Gen Z. A wrong delivery date, slow refund or a botched click-and-collect can be detrimental and often result in not just a disappointed customer, but a competitor gaining a potential customer. This is why operational agility is no longer a back-office issue but vital for storefront success. 

Start owning the moments that matter most to customers

Too often, retailers measure process outputs such as stock turns, fulfilment cost and SLA adherence that rarely capture the lived reality of the customer. If the goal is to adapt to shifting generational behaviour, the metrics must change too, otherwise, retailers risk not only missing sales but also eroding the loyalty that underpins long-term growth. Instead, operational KPIs such as promise-data accuracy, refund time-to-wallet and first contact to resolution should sit on every retailer’s dashboard. Collectively, these KPIs close the gap between what the business thinks it’s delivering and what the customer actually experiences. 

From fragmentation to future-fit

UK retail sits at a crucial crossroads. Generations don’t just define who the customers are but also whether a business is built for the future or left behind in the past. The consumer divide is real, but by no means unbridgeable. Retailers don’t need to rip and replace everything overnight, but they need to build knowledge on exactly which generation drives which product or channel and design experiences that respect the emotional realities of each for long-term success. Retailers need to remember, Generation Alpha are only just around the corner

The event was part of Cokethorpe Enterprises’ Business Breakfast Forum series, a termly event held at Cokethorpe School near Witney.

It brings together employers, senior leaders, and the school’s network of business-owning parents for a morning of discussion, networking and fresh insight.

Leadership was the theme for this term’s forum and Witney and West Oxfordshire MP Charlie Maynard delivered the keynote address.

Mr Maynard said: “Leadership in business and in public life shares a common foundation; listening, accountability and a clear sense of purpose.

“It was a pleasure to join so many local business leaders at Cokethorpe to exchange ideas on navigating change, supporting growth and building stronger communities.”

Dr Sarah Squire, head of Cokethorpe School (Image: Cokethorpe School)

He shared perspectives from his career in international business and public life, including co-founding BDA Partners, an Asia-focused advisory firm, where he spent 24 years growing the business to more than 120 employees across nine global offices.

The event opened with a networking breakfast, followed by wider discussion around leadership, innovation and the future of business across the region.

Dr Sarah Squire, head of Cokethorpe School, said: “It was fantastic to see so many business leaders come together for this term’s forum.

“Our Business Breakfasts are hugely important to us, as a platform for businesses to connect and share insight, across learning, leadership and the local community.

“They also further inspire our pupils about opportunities in the world of work.”

The Business Breakfast Forums regularly attract major speakers from across business, politics and industry.

Previous guests have included entrepreneur, celebrity chef and musician Levi Roots and senior leaders from the agricultural and retail sectors.

Themes have ranged from leadership and disruption to artificial intelligence.

This term’s forum was sponsored by Clifton Bookkeeping, Philip Dennis Foodservice and JJ Hunt Photography.

The sessions are part of Cokethorpe’s wider efforts to build a professional network that benefits both business leaders and pupils, providing students with unique access to mentoring opportunities, workplace insights and professional connections that help bridge the gap between education and the world of work.

Cokethorpe Enterprises operates within the Cokethorpe group with a distinct commercial focus, hosting teambuilding, training, away days and weddings.

The school sits on 150 acres of Oxfordshire parkland and is an independent co-educational day school for pupils aged four to 18.

With around 600 students, it combines academic achievement with a focus on personal development, preparing young people to thrive in an ever-changing world.