#Japan #Tokyo #AI Governance #AGC #Kong

Introduction

Kong Inc., headquartered in Minato, Tokyo, has announced an important collaboration with AGC Inc., based in Chiyoda, Tokyo. This partnership aims to bolster safe AI usage across the entire organization while optimizing development efficiency. They have adopted Kong's API management and AI Gateway services as part of their efforts to establish a uniform AI development foundation, not just limited to departmental functions, but also looking towards potential overseas deployments in the future.

Background: The Need for Enhanced Multi-LLM Utilization

As the interest in AI implementation within AGC has surged, several challenges have emerged regarding the successful creation of a sophisticated and secure operational environment. The demands for flexible use of various LLMs have increased among development teams, wishing to efficiently operate Azure OpenAI alongside Gemini and Anthropic as per project requirements.

Furthermore, the inefficiencies surrounding contract and IT procurement processes were raising concerns. Projects with distinct contracts complicated invoicing and made security checks cumbersome, ultimately hindering the pace of broad AI adoption. Additionally, the visibility and management of usage and costs became increasingly complex as multiple departments utilized APIs independently. This opacity hampered effective corporate governance and cost control.

The psychological barriers associated with pay-per-use pricing models also emerged as a concern. Fears of unexpected expenses could deter users from experimenting with AI tools actively. Therefore, establishing a common AI development platform with clear visibility into usage and costs became essential for empowering teams to utilize AI confidently.

Kong's Value Proposition: Unifying AI Governance and Agile Development

According to insights gathered from AGC, the selection of Kong for this project is driven by several crucial factors:

1. Unified Management of Multiple LLMs (AI Gateway): By bridging the different APIs of Azure OpenAI, Gemini, and Anthropic, Kong offers developers a single point of contact, enabling them to select and switch between optimal AI models with minimal changes.
2. Streamlined Contract and Application Processes: Using Kong as a security-certified common platform allows for centralized governance and efficient contract management, reducing the red tape typically associated with project-specific agreements.
3. Detailed Visibility into Usage and Costs: The platform provides precise visibility of usage down to individual API consumers, facilitating accurate tracking of which employee or department is using which model and to what extent.
4. Budget Control Mechanisms (AI Rate Limiting): By implementing user-specific quotas and rate limits, Kong helps mitigate the risk of exceeding budgetary limits, assuaging concerns of unforeseen high charges among users.
5. Advanced Readiness for Agents/MCP: Beyond mere chatbots, the platform opens possibilities for developing AI agents that can tap into internal data and research papers through the Model Context Protocol (MCP) Gateway.

Notably, Kong’s incorporation into AGC's system was facilitated through AWS Marketplace, ensuring a smooth alignment with existing cloud procurement processes.

Future Outlook

In this ongoing project, the implementation will initially focus on developer teams before gradually rolling out to a broader audience, including back-office staff equipped to utilize AI applications and agents. Hiroshi Todoriki, Group Leader of AGC's Business Innovation Department of the Digital Innovation Division, stated, "AGC views generative AI not just as a departmental initiative, but as a foundational technology that enhances our competitive edge across the company. With Kong's platform, we are advancing towards a robust system that safely leverages multiple LLMs while accelerating our AI initiatives with clear governance."

Daisuke Ariizumi, CEO of Kong, expressed, "We are greatly honored to support AGC's ambitious goal of an all-encompassing AI development foundation with Kong as the core platform. Our experience in API governance and visibility will be extended into the AI domain, ensuring secure and effective multi-LLM and AI agent utilization. Together with AGC, we are committed to facilitating next-generation transformations in operations and systems driven by AI."

About AGC

AGC is a global leader providing cutting-edge technology, products, and services across various sectors, including glass, electronics, chemicals, ceramics, and life sciences. The company prides itself on fostering a sustainable society through innovation, with approximately 52,000 professionals operating across over 30 countries.

About Kong

Kong stands at the forefront of API and AI connectivity, committed to constructing the infrastructure necessary for an agent-based AI era. Trusted by both Fortune 500 companies and startups alike, Kong's integrated platform delivers secure connections, management, acceleration, governance, and monetization of intelligence flowing between APIs and AI models.