Investment Rating - The investment rating for Nomura Research Institute is Neutral [6][8]. Core Insights - The management meeting highlighted that while some manufacturing customers are cautious about investments, the overall business environment in Japan remains solid, with limited negative impact on earnings [4][6]. - NRI plans to gradually implement generative AI in systems development from the second half of 2025 to 2026, although the positive earnings impact is expected to take time [4][5][6]. - NRI is not actively pursuing domestic acquisitions but is exploring joint ventures and acquisitions of companies with intellectual property assets as future options [5][6]. Business Environment - NRI's sales exposure to cautious manufacturing customers is low, limiting the negative impact on overall earnings [4]. - The domestic demand environment is solid for both consulting and system integration, while overseas operations, particularly in Australia, face challenges [4][6]. - A business model shift is planned for the Australian market to improve profitability over the next few years [4][6]. Innovation in Production - NRI is ahead of the industry in applying generative AI to systems development, with gradual implementation expected from 2H25 to 2026 [4][5][6]. - The application of AI in various phases of development is progressing, but a consistent process will take time to establish [4][5]. Industry Reorganization and Corporate Acquisitions - NRI is not currently looking to acquire overseas companies due to a challenging business environment [5][6]. - The company is exploring potential joint ventures with customers and acquisitions of companies with IP assets to strengthen its business platform [5][6].