Play store
Despite facing severe labour shortages, an ageing population and persistent productivity problems, Japan has been relatively slow and cautious in adopting artificial intelligence (AI) in the workplace.
Japan’s approach to AI contrasts sharply with that of countries such as the United States and the United Kingdom, where businesses have moved more quickly to integrate AI into everyday operations.
According to an OECD report published last year, only 8.4% of Japanese workers use AI in their jobs, compared with 50% in the US and 32% in the UK. In Singapore, where workplace AI adoption is among the highest in Asia, the figure is reportedly 56%.
Risk aversion slows adoption
One major reason for Japan’s cautious approach is the risk-averse culture of many Japanese companies.
Austin Xu, co-founder of US-based AI startup Kuse AI, which recently opened an office in Japan, said Japanese organisations often take longer to make decisions because of consensus-driven processes.
“Tolerance for AI mistakes is close to zero, particularly in client-facing roles,” he said, adding that some companies would rather leave a position vacant than allow a machine to handle it.
In the US, by contrast, some companies are giving AI systems greater freedom to improve productivity. AI is often introduced as an assistant, with businesses gradually expanding its role as employees gain experience and learn to manage mistakes.
Parrisa Haghirian, a professor of international management at Kyoto University of Advanced Science, said Japan’s cautious approach to AI reflects a broader reluctance among Japanese companies to embrace major organisational changes.
Generative AI is still viewed as unreliable for many high-risk tasks, she said. As a result, Japanese businesses tend to use it for activities such as drafting text, summarising documents and gathering information rather than for core operations and decision-making.
Outdated digital infrastructure
Japan’s slow AI adoption is also linked to its ageing digital infrastructure and shortage of technology workers.
Some hospitals, for example, have yet to fully digitise patient records, with large volumes of information still stored on paper.
Prof Yasushi Ogasawara, an expert on Japan’s social system and technology at Meiji University, said the country also suffers from relatively low digital literacy despite widespread use of consumer technology.
Japan could face a shortage of nearly 800,000 IT professionals by 2030, according to an estimate published earlier this year.
Many companies also continue to rely on outdated computer systems, with around 60% reportedly more than two decades old. Such legacy systems can make it difficult and costly to introduce modern AI tools.
Government pushes AI adoption
The Japanese government has recognised the challenge and is trying to encourage businesses to adopt AI.
Parliament last year passed the country’s first AI Promotion Act, taking a relatively light-touch regulatory approach intended to encourage investment and development.
Tokyo has also pledged to make Japan one of the world’s most AI-friendly countries for development and use of the technology, viewing AI as a potential solution to the country’s weak productivity growth.
Japan’s Ministry of Finance says AI adoption among businesses has risen significantly, with 75% of companies now using the technology, compared with 11% five years ago.
However, critics argue that the figure can be misleading because many employees use AI only for limited tasks rather than integrating it into core business operations.
Signs of change
There are signs that attitudes are beginning to shift.
Some Japanese companies are increasingly looking for AI skills when recruiting graduates. Major trading company Kanematsu, for example, has hired graduates with strong AI capabilities.
New employee Uta Yamaguchi said she frequently uses AI to draft emails, summarise documents and record and summarise meetings.
However, AI systems capable of independently handling complex, multi-step tasks remain far less common in Japan than in the US. Even companies considered relatively progressive are only beginning to introduce them.
Ogasawara said Japan’s preference for gradual, low-risk reform remains a major obstacle.
Without greater willingness to experiment with AI, upgrade digital infrastructure and develop technology skills, Japan may struggle to capture the productivity gains it urgently needs from the technology.