Notice of Minority Investment in elu Inc. and the Launch of Joint Research on HR AI Model

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) hereby announces that it acquired shares in elu Inc. (“elu,” headquartered in Shibuya-ku, Tokyo, Ryuta Endo, CEO and Representative Director), which provides AI agents in HR domain, and will start joint research with elu on HR AI models.

1. Background of Minority Investment and the Launch of Joint Research
SHIFT is rooted in software testing, a sector with a domestic market size of approximately 5.5 trillion yen. We have been expanding our business by enhancing each of the four pillars of business growth: “Sales,” “Technology,” “HR,” and “Management/M&A.” Our focus has been on creating a virtuous cycle aimed at increasing corporate value through operational excellence such as structuring processes, and services that maximize the return on investment for our clients, etc.
In increasing the service value, through service development and M&A, we have horizontally expanded our offerings in consulting, development, marketing, customer support, and BPO to meet the customers’ demands that are varying in this changing macro environment. Simultaneously, by promoting seamless vertical integration throughout the entire software development lifecycle—from upstream planning to downstream implementation—we have exceeded consolidated net sales of 100 billion yen and are continuing to achieve steady growth toward further business expansion.
Currently, under our growth strategy “SHIFT3000,” in which we aim at net sales of 300 billion yen (3,000 oku yen in Japanese), we are actively leveraging AI as a key strategic pillar. Through this, we are fostering a virtuous growth cycle that accelerates our business expansion and enables us to drive continuous transformation.

In the realm of HR, one of these pillars, we are advancing strategic human capital management through initiatives to maximize employees’ LTV*1 such as strengthening recruitment, reducing turnover rates, and investing in our work environment. As part of our commitment to strategic human capital management, we have hired over 2,000 employees annually, bringing our consolidated workforce to over 13,000*2. We have accumulated a wealth of data, including 450 data points per employee, and records of one-on-one meetings with supervisors, which we believe is one of the SHIFT Group’s key strengths. Utilizing this data, our AI engineers are at the forefront of driving operational excellence through AI, and we are beginning to see the results of their efforts.

Elu, which SHIFT will work with, develops and provides AI agents specializing in autonomously learning-evolving HR domains, closely aligning with the cultural, strategic, and human resource perceptions of each company. In the collaboration with elu, we will engage in joint research on a HR AI model. In joint research with elu, elu develops an AI model specializing in HR, and SHIFT conducts empirical research on this model through its introduction to practice.

Due to the nature of the information, legal regulations, employment practices, and corporate cultures are complicated, and it is difficult to introduce technologies in the domestic personnel field. By combining elu’s advanced AI technologies and agility with SHIFT’s pursuit of strategic human capital management through a wide range of unique HR initiatives, this joint research aims to develop AI models that further enhance HR strategies, ultimately aiming to further refine and accelerate our strategic human capital management.

Looking ahead, building on the findings of the proof-of-concept research conducted at SHIFT, we aim to deliver AI agents that contribute to improving labor productivity across Japanese companies and enhancing job satisfaction for their employees on a broader scale.

*1 Life Time Value
*2 As of the end of the Q2 of the fiscal year ending August 2025. Including business partners

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Contact
ir_info@shiftinc.jp