This recognition highlights Hitachi Digital Services' industrial AI leadership, strategic execution, and customer-focused innovation accelerating measurable transformation at scale.

SAN ANTONIO, Oct. 21, 2025 -- Frost & Sullivan is pleased to announce that Hitachi Digital Services has received the 2025 North America Competitive Strategy Leadership Recognition in the Artificial Intelligence Services Industry for its outstanding achievements in delivering production-ready AI capabilities, optimizing cloud workloads, and enabling cost-effective, scalable digital solutions for industrial enterprises. This recognition highlights Hitachi DS's strong market position and consistent leadership in driving measurable outcomes while accelerating customer innovation in a rapidly evolving competitive landscape.

"Hitachi's legacy runs deep in industrial sectors worldwide, with our outputs spanning software and hardware design, development, and delivery. As such, we as a technology partner hold unique insight that allows enterprises to confidently place their futures in our hands. We've co-created some of the most pivotal digital transformations seen in recent years. And, we're proud to be recognized for that work by Frost & Sullivan as this acknowledgement underscores the commitment we strive for every day," said Roger Lvin, CEO, Hitachi Digital Services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Hitachi DS excelled in both, demonstrating its ability to align strategic initiatives with market demand while executing them with efficiency, consistency, speed, and scale. "Hitachi Digital Services embeds reliability and alignment from the outset, making true production-ready AI systems. Its flagship HARC for AI service, originally designed for cloud workload optimization, operationalizes AI using Gen and Agentic AI tech for reliability, observability and cost control. This enables the company to focus on production operations rather than prototype showcases," said Nishchal Khorana, Associate Partner - Growth Opportunity Analytics at Frost & Sullivan.

Guided by a long-term growth strategy focused on integrating information technology (IT) and operational technology (OT) for industrial transformation, Hitachi Digital Services has shown its ability to adapt and lead in a rapidly evolving AI services landscape. Its deep domain expertise across manufacturing, energy, mining, logistics, and transportation enables it to deliver targeted, high-impact AI solutions, from predictive maintenance and quality control to supply chain optimization and fleet monitoring.

Sustainable innovation remains central to Hitachi DS's approach, particularly regarding AI solution delivery as illustrated by three disruptive, proprietary services: R2O2.ai, HARC for AI, and HARC Agents.

The Reliable, Responsible, Observable, and Optimal AI (R2O2.ai) framework uses Gen AI to solve the critical challenge of moving AI models through conceptualization to proof-of-concept to production, ensuring solutions are reliable, observable and fit for purpose. Hitachi Application Reliability Center (HARC) for AI runs AI applications with greater reliability, efficiency, and governance while mitigating scaling challenges such as unpredictable costs, performance degradation over time, and limited oversight of complex models.

The company's newest release, HARC Agents is an Agentic AI platform combining HARC for AI and R202.ai with a library of AI agents and an enterprise-grade management system. The platform jumpstarts AI system development (decreasing development time by 30%) and simplifies cross-environment oversight of all AI systems—providing stronger control over governance, performance monitoring, and compliance.

"At Hitachi Digital Services, we believe AI must be reliable, responsible, and production-ready from day one. Our focus is not on prototypes but on outcomes—solutions that scale, integrate deeply with operational environments, and deliver measurable value. By combining industrial domain expertise with intelligent architecture, we're helping enterprises move beyond experimentation to sustainable AI at scale." said Premkumar Balasubramanian, CTO at Hitachi Digital Services

Hitachi DS's hybrid AI approach blends off-the-shelf models with custom-built solutions tailored to client needs. Its work with organizations such as Hitachi Rail and WMATA, illustrating its ability to deliver mission-critical, high-accuracy AI systems that drive operational efficiency and business value.

Frost & Sullivan commends Hitachi Digital Services for setting a high standard in competitive strategy, execution, and market responsiveness. By embedding AI across all digital transformation initiatives and pioneering intelligent architectures for the agentic AI era, the company is shaping the future of enterprise modernization.

Frost & Sullivan's Competitive Strategy Leadership Recognition is its top honor and recognizes the market participant that exemplifies visionary innovation, market-leading performance, and unmatched customer care. This recognition honors companies in various regional and global markets for demonstrating outstanding achievement and superior performance in leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analyses, and extensive secondary research to identify best practices in the industry.

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About Hitachi Digital Services

Hitachi Digital Services, a wholly owned subsidiary of Hitachi, Ltd., is a global systems integrator powering mission-critical platforms with people and technology. We help enterprises build, integrate, and run physical and digital systems with tailored solutions in cloud, data, IoT, and ERP modernization, underpinned by advanced AI. By combining Information Technology and Operational Technology (ITxOT), we drive efficiency, innovation, and growth across industries. With over 110 years of Hitachi Group's engineering and technology leadership, Hitachi Digital Services is powering smarter platforms for a safer, more sustainable future. For more information on Hitachi Digital Services, please visit the company's website at www.hitachids.com.

About Hitachi, Ltd.

Through its Social Innovation Business (SIB) that brings together IT, OT (Operational Technology) and products, Hitachi contributes to a harmonized society where the environment, wellbeing, and economic growth are in balance. Hitachi operates globally in four sectors – Digital Systems & Services, Energy, Mobility, and Connective Industries – and the Strategic SIB Business Unit for new growth businesses. With Lumada at its core, Hitachi generates value from integrating data, technology and domain knowledge to solve customer and social challenges. Revenues for FY2024 (ended March 31, 2025) totaled 9,783.3 billion yen, with 618 consolidated subsidiaries and approximately 280,000 employees worldwide. Visit us at www.hitachi.com.

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