International investors back Oxford-based AI work

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.”