Get to know Gyosei
Gyosei Consulting Co., Ltd. is the consulting arm of the Gyosei Audit Corporation Group, the 6th largest audit firm group in Japan. The firm provides Risk Advisory, Financial Advisory (FAS), IPO Support, and Management Consulting services across Japan, with international reach through the NEXIA International network.
In fiscal year 2027, the new Lease Accounting Standard – aligned with IFRS 16 – becomes mandatory. The standard is highly complex: a far broader set of contracts must be recognized as right-of-use (ROU) assets on the balance sheet, materially impacting key financial indicators. Identifying applicable contracts, determining lease terms, and applying the rules manually demands deep expertise and creates a heavy operational burden. Gyosei Consulting needed to scale its advisory delivery and equip its enterprise clients with a reliable, automated way to comply with the new standard.
Challenges
Targeted solutions for
Difficulty in reading and interpreting contracts
Lease contracts are written in unstructured natural language, with critical terms scattered across multiple clauses. Analysts had to read each contract end-to-end, slowing down adoption of the new standard and creating bottlenecks during peak closing periods.
Limits of manual checking
Reviewing documents and data one by one does not scale. When transaction volumes spike – for example after M&A or group reorganization – the team cannot ramp up fast enough, yet temporary surges in workload are not enough justification to take on additional headcount risk.
High risk of interpretation errors
Human error and resource constraints lead to misjudgments of the accounting treatment. Expertise tends to concentrate in a few specialists, making the process fragile, inconsistent across offices and reviewers, and exposing the firm and its clients to audit and compliance risk.
solutions
Our tools for success
We designed a multi-agent AI platform that automates lease judgment under the new Japanese Lease Accounting Standard, end to end – from contract intake through final, audit-ready reports.
Automated extraction of required information
OCR digitizes scanned and PDF contracts, and AI parses the unstructured text to identify exactly the data points the new lease standard requires (parties, term, renewal options, payments, embedded options, etc.) with high accuracy.
End-to-end process automation
A single orchestrated pipeline covers OCR digitization, AI classification, lease judgment, and report generation – allowing the team to absorb large increases in contract volume without proportional growth in headcount.
Explainable AI with traceability to source clauses
For every extracted item and every judgment, the system surfaces the specific clause and article number used as evidence. This makes human review fast, supports audit defensibility, and improves consistency across reviewers and offices.
Modular, multi-platform architecture
The platform is built in layers – Storage, Knowledge System, Enterprise Service Layer, Contract Judgment System, and User Interface – combining core services (judgment orchestrator, workflow engine, quality assurance), an AI engine stack (OCR, LLM, decision engine), and a specialist agent layer (lead, domain, and compliance agents). It is delivered through a unified experience across dashboard, web, and mobile.
Foundation for future capabilities
The same platform is designed to extend into contract lifecycle management with metadata-based search, contract monitoring with renewal/expiry alerts (90/60/30/7 days), a legal Q&A chatbot grounded on the client’s own contracts, multi-step approval workflows, and integrations with surrounding enterprise systems.
success
We deliver impactful results
The AI lease support platform is expected to deliver impact well beyond pure efficiency – improving quality, scalability, and management visibility.
Dramatically shorter lead times
The OCR–LLM–classification engine performs the first-pass review automatically, allowing the team to handle large jumps in contract volume while human reviewers focus on exceptions and high-judgment cases.
Standardized quality, less key-person dependency
Centralized judgment logic and specialist agents keep review results consistent across offices and reviewers, turning lease-judgment know-how into a reusable organizational asset rather than tacit knowledge held by a few experts.
Stronger risk detection
The platform systematically surfaces easy-to-miss clauses, accounting impacts, and compliance issues, exposing anomalies earlier in the process than manual review could.
Built to scale
New subsidiaries, additional accounting standards, and expanded deployment scope are absorbed by adding modules – including a clear path toward supporting overseas accounting standards in the future.
Organizational asset
Expertise on the new lease standard is captured in a structured knowledge base, making lease-judgment know-how reusable and continuously improvable.
