【Press Release】AI startup, Recursive, starts the development of KDDI’s original ad creative production model utilizing generative AI

- Aims to improve online ad production efficiency and maximize effectiveness through AI trained on KDDI’s data -

Recursive Inc. (Headquarter: Shibuya-ku, Tokyo; CEO: Tiago Ramalho; hereinafter referred to as "Recursive"), a developer of AI solutions that facilitate sustainable business transformation, has officially been contracted by the major Japanese telecommunications firm, KDDI Corporation (hereinafter referred to as “KDDI”). With this, Recursive is pleased to announce that it has started developing a data-driven AI model to generate ad creatives for KDDI. In addition to considering the concepts and customer characteristics of KDDI Group and its affiliated brands, the AI model being developed by Recursive will also enable the production of various ad creatives based on predictions of  KPI performance. This capability will allow KDDI to produce ad creatives and image assets, such as banners, more efficiently and effectively. In general, research and development of generative AI for image editing and creation tend to lag behind advancements in text generation. However, this data-driven generative AI model based on the prediction of set KPIs is a groundbreaking initiative that will open up new possibilities for ad production and operation. The development for this AI model is expected to be completed by the fall of 2024.

Background and current challenges

With the rapid growth of social media in recent years, online advertising has gained significant importance. Advertisers now need to produce ad designs and compositions flexibly and quickly, all the while considering the unique viewing behaviors that are different from traditional mass media, as well as the different characteristics of each platform.  However, crafting online advertisements that have market appeal while optimizing them for each platform demands more production time and effort than traditional ads, thereby posing a challenge in achieving efficient production methods. Moreover, there is a pressing need to swiftly cycle through the PDCA (Plan-Do-Check-Act) process to optimize and maximize the effectiveness of advertisements.

KDDI also faces the dual challenge of improving work efficiency and accelerating the PDCA cycle within its ad creative production process. Additionally, since KDDI has various brands within its group, it must also consider the branding, target audiences, concept, specifications, messaging, and descriptions for each brand, product, and service. Therefore, the AI model is anticipated to integrate these considerations from the early stages of ad creative production, facilitating efficient optimization and enabling high-volume production of ad creatives.

Overview of the project

Against this background, Recursive will develop a generative AI model that would be capable of performing the following two main things in order to achieve optimization, efficiency, and high-volume production for KDDI's online ad creatives:

1. Generation of ad materials and image assets in line with brand identity: Reflecting the characteristics and needs of each brand (branding, target customers, concept, specifications, messaging, description, etc.) from the early stages of production, the AI model will generate ad designs tailored to each of the platforms where the ad will be placed. This will reduce the time and effort of tasks that were conventionally done manually, and improve operational efficiency.
2. Prediction of KPIs and decision on ad creatives with maximum effectiveness: The AI model will predict KPI performance, allowing for the prioritization of designs based on these metrics. This approach will enable the production of "data-driven" ad creatives grounded in KPI data.

Image of how the ad creatives will be generated when using Recursive's AI model

The KDDI Group plays a crucial role in providing telecommunications infrastructure while striving to reduce its environmental footprint in Japan and abroad. Through the development of this AI model, Recursive aims to support KDDI Group by helping its products and services reach more people through efficient and effective advertising campaigns.

[About Recursive Inc.] Recursive is a service provider that offers AI solutions for building a sustainable future. By combining expertise in diverse industries such as environment, energy, healthcare, pharmaceuticals, food, and retail as well as advanced technological capabilities and specialized knowledge in sustainability, Recursive provides AI consulting services and technical development. In order to leave a better global environment and society behind for future generations, Recursive’s unparalleled professionals are leading the creation of a new society with world-class, cutting-edge technology.

Company name: Recursive Inc. Headquarter: Shibuya S-6 Building 6F, 1-7-1 Shibuya, Shibuya-ku, Tokyo Founded: August 2020 Co-Founders: Tiago Ramalho, Katsutoshi Yamada Business: Research and development of AI and provision of sustainability-related solutions Number of employees: 52 (including full-time employees, outsourced workers, and interns; as of May 2024) Website:  https://recursiveai.co.jp/en/

[Media inquiries] Recursive Inc. Kishimoto (PR & Branding) Email: info@recursiveai.co.jp Phone: +81-90-9847-7832 (Direct number to Kishimoto)