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Japanese Legal Tech Revolution

Financial Times Companies •
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Japanese legal tech company MNTSQ, founded by Ryuhei Itaya at Nagashima Ohne & Tsunematsu, developed a revolutionary contract tool using optical character recognition to correct Japanese terminology. The venture secured $7 million backing from the law firm in 2019 and evolved into a generative AI platform that codifies information to determine which contracts require qualified lawyers versus business professionals.

The platform addresses a critical technical gap, as global AI tools struggle with Japanese legal language. Three of Japan's four largest law firms now use the system, including Nishimura & Asahi and Mori Hamada & Matsumoto. Nearly 1,900 companies utilize the platform, with major corporations like Panasonic and Mitsubishi Motors benefiting from improved contract accuracy and efficiency.

MNTSQ's success reflects broader concerns in Asia-Pacific about potential isolation from US AI providers. The platform operates entirely within Japanese legal frameworks, offering independence from foreign tech companies. This approach has created a valuable alternative for regional firms seeking AI solutions tailored to local legal requirements while maintaining control over sensitive data.