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Unlock the Editor\u2019s Digest for free<\/p>\n
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<\/iframe><\/div>\n<div id=\"article-body\">\n<p>One Japanese tech group has emerged a significant, yet under-appreciated, beneficiary of the global artificial intelligence boom. Shares of Fujitsu have risen by nearly two-thirds from last year\u2019s lows as it positions itself as a serious contender in enterprise AI transformation. <\/p>\n<p>Fujitsu has launched proprietary generative AI platforms and invested heavily in hybrid computing infrastructure as well as developing advanced liquid cooling systems that help reduce data centre power consumption. Yet even as its AI momentum accelerates, a crisis from the UK could derail its progress.<\/p>\n<p>The issue involves the UK Post Office\u2019s Horizon IT system, which Fujitsu developed and maintained. Between 1999 and 2015, hundreds of sub-postmasters were wrongfully prosecuted for theft, fraud and false accounting due to faulty data produced by the system. Some individuals were imprisoned and others driven to bankruptcy.<\/p>\n<p>As public outrage grows, Fujitsu \u2014 which a public inquiry last week said was aware of <a href=\"https:\/\/www.ft.com\/content\/0695206e-60f8-4565-a46f-c7158639f61c\" data-trackable=\"link\">\u201cbugs, errors and defects\u201d in its software<\/a> \u2014 is facing renewed legal and political scrutiny, with calls for accountability intensifying in Parliament. Former MP Kevan Jones has proposed that Fujitsu contribute an interim compensation payment of \u00a3300mn.<\/p>\n<p>That payment would be equal to about a fifth of Fujitsu\u2019s adjusted operating profit for the fiscal year ended March. When accounting for additional risks such as legal fees, compliance costs or potential revenue losses from suspended contracts the financial impact could be significantly higher.<\/p>\n<p>Fujitsu\u2019s revenue is heavily exposed to the UK public sector. It has been a key government supplier for decades, with UK Treasury-affiliated organisations alone holding over \u00a33.4bn in active contracts with Fujitsu since 2019. If political pressure escalates and triggers a partial or full exclusion from future public-sector projects, as some MPs have demanded, the fallout would be serious. Even just losing its contract business with HM Revenue & Customs could cost Fujitsu up to \u00a3300mn in annual revenue.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A32ea74f0-b81d-42dc-a8e1-8135e5e5913f?source=next-article&fit=scale-down&quality=highest&width=490&dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A32ea74f0-b81d-42dc-a8e1-8135e5e5913f?source=next-article&fit=scale-down&quality=highest&width=490&dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A32ea74f0-b81d-42dc-a8e1-8135e5e5913f?source=next-article&fit=scale-down&quality=highest&width=490&dpr=3 3x\" width=\"1500\" height=\"2000\"\/><\/picture><\/figure>\n<p>Fujitsu has been in a good position as far as its global AI aims are concerned. Its offering, which includes cloud computing and supply chain management, has been a key driver of group earnings growth over the past year. Investors have been betting the acceleration in demand from companies for Fujitsu\u2019s platform will continue. If ongoing issues in the UK erode both its earnings power and the trust of the company\u2019s international clients, they could yet end up wrongfooted.<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/mailto:june.yoon@ft.com\" data-trackable=\"link\"><em>june.yoon@ft.com<\/em><\/a><\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/cbc26f40-f527-4b3b-a8fc-497e0a41fa19\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":7,"featured_media":34272,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-34271","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tech","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34271"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34271\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34272"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/iframe><\/div>\n<div id=\"article-body\">\n<p>One Japanese tech group has emerged a significant, yet under-appreciated, beneficiary of the global artificial intelligence boom. Shares of Fujitsu have risen by nearly two-thirds from last year\u2019s lows as it positions itself as a serious contender in enterprise AI transformation. <\/p>\n<p>Fujitsu has launched proprietary generative AI platforms and invested heavily in hybrid computing infrastructure as well as developing advanced liquid cooling systems that help reduce data centre power consumption. Yet even as its AI momentum accelerates, a crisis from the UK could derail its progress.<\/p>\n<p>The issue involves the UK Post Office\u2019s Horizon IT system, which Fujitsu developed and maintained. Between 1999 and 2015, hundreds of sub-postmasters were wrongfully prosecuted for theft, fraud and false accounting due to faulty data produced by the system. Some individuals were imprisoned and others driven to bankruptcy.<\/p>\n<p>As public outrage grows, Fujitsu \u2014 which a public inquiry last week said was aware of <a href=\"https:\/\/www.ft.com\/content\/0695206e-60f8-4565-a46f-c7158639f61c\" data-trackable=\"link\">\u201cbugs, errors and defects\u201d in its software<\/a> \u2014 is facing renewed legal and political scrutiny, with calls for accountability intensifying in Parliament. Former MP Kevan Jones has proposed that Fujitsu contribute an interim compensation payment of \u00a3300mn.<\/p>\n<p>That payment would be equal to about a fifth of Fujitsu\u2019s adjusted operating profit for the fiscal year ended March. When accounting for additional risks such as legal fees, compliance costs or potential revenue losses from suspended contracts the financial impact could be significantly higher.<\/p>\n<p>Fujitsu\u2019s revenue is heavily exposed to the UK public sector. It has been a key government supplier for decades, with UK Treasury-affiliated organisations alone holding over \u00a33.4bn in active contracts with Fujitsu since 2019. If political pressure escalates and triggers a partial or full exclusion from future public-sector projects, as some MPs have demanded, the fallout would be serious. Even just losing its contract business with HM Revenue & Customs could cost Fujitsu up to \u00a3300mn in annual revenue.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A6bbed01b-8cac-4cd1-91cd-408845cec81d?source=next-article&fit=scale-down&quality=highest&width=700&dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A32ea74f0-b81d-42dc-a8e1-8135e5e5913f?source=next-article&fit=scale-down&quality=highest&width=490&dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A32ea74f0-b81d-42dc-a8e1-8135e5e5913f?source=next-article&fit=scale-down&quality=highest&width=490&dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A32ea74f0-b81d-42dc-a8e1-8135e5e5913f?source=next-article&fit=scale-down&quality=highest&width=490&dpr=3 3x\" width=\"1500\" height=\"2000\"\/><\/picture><\/figure>\n<p>Fujitsu has been in a good position as far as its global AI aims are concerned. Its offering, which includes cloud computing and supply chain management, has been a key driver of group earnings growth over the past year. Investors have been betting the acceleration in demand from companies for Fujitsu\u2019s platform will continue. If ongoing issues in the UK erode both its earnings power and the trust of the company\u2019s international clients, they could yet end up wrongfooted.<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/mailto:june.yoon@ft.com\" data-trackable=\"link\"><em>june.yoon@ft.com<\/em><\/a><\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/cbc26f40-f527-4b3b-a8fc-497e0a41fa19\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":7,"featured_media":34272,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-34271","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tech","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34271"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34271\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34272"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}