Facing acute labour shortages, ageing demographics and chronic productivity problems, Japanese companies should be fertile ground for the take-up of artificial intelligence (AI).
asserted
companies → face → intelligence
Yet, compared with the US and UK, adoption in many workplaces remains sluggish and cautious.
asserted
adoption → compare → workplaces
Japan's response to AI is beginning to resemble one of the country's slow-moving, traditional Noh plays.
asserted
response → begin → plays
All the masked characters up on stage agree that action is urgent, and the call is repeated with solemn agreement.
asserted
call → agree → agreement
Yet the actors remain frozen in place.
Great for heightening drama, terrible for addressing the country's immediate difficulties.
Data showing the use of AI in the workplace suggests that Japan has fallen behind.
uncertain
Japan → remain → workplace
Just 8.4% of Japanese workers use AI as part of their job, according to a report, external at the end of last year by the Organisation for Economic Co-operation and Development (OECD).
uncertain
% → use → operation
By contrast, separate statistics puts the US figure at 50%,, external and the UK at 32%.
asserted
statistics → put → %
In Singapore, which is said to have seen the second-highest, external take up of AI after the United Arab Emirates, and the most in Asia, 56% of workers are said to use AI "multiple times a week".
asserted
% → say → AI
So why is Japan dragging its feet?
asserted
Japan → drag → feet
Austin Xu, co-founder of US start-up Kuse AI, says it is due to Japanese companies being conservative and risk adverse.
asserted
companies → say → up
His business recently set up an office in Japan to sell its AI systems to firms in the country.
asserted
business → set → country
"There are organisations where process and consensus culture genuinely slow things down," he says.
asserted
he → be → things
"Where tolerance for AI mistakes is close to zero, especially in anything client facing.
asserted
client → face → anything
Some would rather leave a role unfilled than let a machine handle it."
asserted
machine → leave → it
Xu says the situation in the US is very different, with some businesses already allowing AI agents far more freedom to boost productivity.
asserted
businesses → say → productivity
"In the US, AI colleagues enter as helpers and gradually become part of the workflow.
asserted
colleagues → enter → workflow
The attitude [of US bosses] is often - let it try, then correct it."
asserted
it → let → it
He adds that Japanese companies need more proof before they trust AI enough to use it.
asserted
they → add → it
Parrisa Haghirian, professor of international management at the Kyoto University of Advanced Science, agrees that many Japanese companies are too risk adverse to look at AI.
asserted
companies → agree → AI
"The challenges of adopting it are the same as adopting any change in Japanese firms.
asserted
challenges → adopt → firms
Haghirian also contrasts this with the more entrepreneurial culture of the US, arguing that Japanese firms are highly sensitive to error, uncertainty and reputational risk.
asserted
firms → contrast → error
"Since generative AI is still not fully reliable, it is mainly used [in Japan] for low-risk tasks such as writing, summarising, or information gathering, but much less for core operations or decision-making and for improving overall processes," she says.
asserted
she → use → processes
Japan's healthcare sector is said to be particularly slow to look at AI, with some hospitals yet to even fully digitalise patient files.
asserted
hospitals → say → files
"Paper documents accumulate at a staggering scale," says one employee at a Japanese hospital, who asked not to be named.
asserted
who → accumulate → hospital
The Japanese government is aware of the wider problem of low AI adoption, and is trying to get more companies to take up the technology.
asserted
companies → try → technology
Last year its AI Promotion Act was passed, external by the country's parliament.
asserted
Act → pass → parliament
This aims to use light-touch regulation to encourage businesses to invest more in AI.
asserted
This → aim → AI
Tokyo pledges that Japan will become "the world's most-friendly country for developing and utilizing AI".
asserted
Japan → pledge → AI
The government believes that the increased use of AI can help Japan improve its productivity.
asserted
Japan → believe → productivity
Currently it continues to have the worst level, external in the G7 group of advanced nations.
asserted
it → continue → nations
Japan's Ministry of Finance says that AI adoption by businesses has already increased substantially,, external with 75% of companies now using the technology, up from 11% five years ago.
asserted
% → say → %
However, critics argue that at each of these businesses only a tiny proportion of staff are actually using the AI, and that those who do so are only using it to a very limited extent.
asserted
who → argue → extent
Prof Yasushi Ogasawara, an expert on Japan's social system and technology at Meiji University, says there aren't enough tech-savvy people in the workforce.
asserted
Ogasawara → say → workforce
"Although the Japanese like playing with gadgets such as smartphones, digital literacy is low here," he says.
asserted
he → like → smartphones
This is highlighted by one report earlier this year which said Japan faced a shortfall , externalof almost 800,000 IT professionals by 2030.
asserted
Japan → highlight → 2030
Many companies are also said to struggle with out-of-date computer systems, with around 60% more than 20-years-old.
asserted
companies → say → years
Moreover, Ogasawara adds that Japanese companies are under more pressure to avoid fuelling unemployment than they are to develop AI which could result in job losses.
uncertain
which → add → losses
"The government is talking about AI, re-skilling, digital skills, but in reality, it is difficult to adapt human resources to digital skills because the top priority is to maintain full employment," he says.
asserted
he → talk → employment
But there is a shift in recruitment, with some companies now prioritising "AI literacy" in their new graduate hiring.
asserted
companies → be → hiring
In the private sector, larger firms such as Kanematsu, a major general trading company, are hiring savvy graduates such as Uta Yamaguchi who joined in April.
asserted
who → hire → April
…and 7 more, not listed.
The Aporia
