Kao unveils "Kao AI Governance" policy for responsible AI

Kao's digital strategy is anchored in its mid-term management plan "K27", which aims to transform the company into a "global sharp-top" enterprise that delivers top-tier contributions to customer needs through edge-focused brands and solutions. The "Kao AI Governance" policy, announced in July 2026, formalizes the company's commitment to safe, ethical, and responsible AI use as it pursues an "AI Centric" approach.

The policy builds on existing digital infrastructure, including the "Kao i-Lake" data lake that consolidates global value-chain data. This foundation supports initiatives such as the ESG global dashboard, which visualizes packaging regulations, raw material naturality indices, CO2 emissions, and biodegradability and safety assessments. For example, when chemical substances are regulated in Europe, Kao can identify affected products worldwide and visualize inventory, sales impact, and supply-demand forecasts in real time, enabling rapid decision-making.

Early results from the AI push include more than 4,700 "citizen developers" trained as DX personnel and a projected 60% reduction in internal information-gathering time. AI-powered skin diagnostics now cover 77 items, five times more than before, and AI demand forecasting has cut asset disposal losses by 38%. These outcomes suggest Kao is embedding AI across product development, marketing, and value design to accelerate decision-making and deliver new customer experiences, though the full impact of the governance policy remains to be seen.