Artificial Intelligence▲
Soracom cuts SG&A ratio by 6 points with generative AI, leveraging field data and telecom tech for competitive edge
Ken Tamagawa, President and CEO of Soracom, which operates an IoT platform, announced at the annual event SORACOM Discovery 2026 that the company reduced its selling, general and administrative expense ratio against revenue by 6 percentage points in one year through the use of generative AI. After declaring internally that it would become a post-AI organization, the company restructured into small teams for each business combined with AI, resulting in generative AI writing nearly 100 percent of source code and cutting SG&A costs without reducing headcount. Tamagawa noted that as AI foundation models become commoditized, competitive advantage lies in accumulating company-specific field data and token capital, the ability to master AI. Leveraging its strength in developing telecom as cloud-based software in-house, Soracom holds the gateway for feeding field data into AI. The newly announced AI agent service, SORACOM Agent, provides conversational support from IoT planning to operations and accumulates business knowledge as long-term memory. The company also jointly developed an IoT SIM with KDDI supporting the new eSIM standard SGP.32 for remote SIM rewriting, and began commercial provision. Furthermore, it announced a business selling core network software to telecom operators, with commercial use already underway through a joint venture with the Marubeni I-DIGIO Group.