Why are Japanese companies not rushing to adopt artificial intelligence?
Japan, despite its status as a technological powerhouse, remains cautious in adopting artificial intelligence. While facing severe labor shortages and an aging population, the country lags significantly behind the US and the UK in integrating AI into the workplace.
As a technological powerhouse, Japan should have been a fertile ground for the adoption of artificial intelligence (AI). However, compared to the USA and the UK, integration in many workplaces remains slow and cautious. This trend persists even as the country faces a severe labor shortage and an aging demographic.
Data regarding AI usage indicates that Japan is trailing behind. According to a report published late last year by the Organisation for Economic Co-operation and Development (OECD), only 8.4% of workers in Japan utilize artificial intelligence as part of their daily tasks.
In contrast, statistical data shows that the figure stands at 50% in the USA and 32% in the UK. In Singapore, which boasts the second-highest AI adoption rate after the United Arab Emirates and the highest in East Asia, 56% of workers report using AI several times a week.
Why is Japan dragging its feet?
Austin Shaw, co-founder of the American AI startup Kuse AI, which recently opened a Japanese branch, suggests that the primary reason for this hesitation is that Japanese companies are inherently conservative and risk-averse.
"There are organizations where the culture of processes and consensus really slows things down," he said. "In environments where tolerance for AI errors is close to zero, especially in customer service, many would prefer to leave a position unmanned than to let a machine handle it."
Shaw notes that the situation in the USA is vastly different, with businesses granting AI agents more autonomy to boost productivity. "In the US, AI-based colleagues serve as assistants and gradually become part of the workflow. The approach of American managers is usually: let it try, and then fix it." He added that Japanese firms require more proof before they trust AI to a level that would justify its widespread use.
Government initiatives and structural barriers
The Japanese government is aware of the low adoption rates and is actively encouraging businesses to embrace the technology. Last year, the parliament passed the "AI Promotion Law," which aims to use moderate regulation to incentivize investment. Tokyo has even pledged to make Japan the "most friendly country in the world for the development and utilization of AI."
Prof. Yasushi Ogasawara, an expert on Japan's social system and technology at Meiji University, points out a lack of technological affinity within the workforce: "Although the Japanese love playing with gadgets like smartphones, digital literacy here is low," he says.
This issue is compounded by reports suggesting Japan could face a shortage of nearly 800,000 IT professionals by 2030. Many companies are also struggling with outdated computer systems, with approximately 60% being over 20 years old. Furthermore, Ogasawara notes that Japanese companies are under greater pressure to prevent unemployment than to develop AI, which could potentially lead to job losses.
"Change in Japan is limited," the professor concludes. "Japanese society expects reform without pain, so radical reform is difficult, to say the least."
