Japanese companies are struggling to adopt artificial intelligence (AI) in the workplace, despite the country's severe labour shortages and productivity problems. Only 8.4% of Japanese workers use AI as part of their job, according to a report by the Organisation for Economic Co-operation and Development (OECD).
This is in stark contrast to other countries, where AI adoption is much higher. In the US, 50% of workers use AI, while in the UK, the figure is 32%. Singapore has the highest take-up of AI in Asia, with 56% of workers using the technology "multiple times a week".
Slow-Moving Response to AI
Japan's response to AI is beginning to resemble one of the country's slow-moving, traditional Noh plays. Despite the urgent need for action, Japanese companies are being cautious and risk-averse. Austin Xu, co-founder of US start-up Kuse AI, says that Japanese companies are too conservative and slow to adopt AI.
"There are organisations where process and consensus culture genuinely slow things down," Xu says. "Where tolerance for AI mistakes is close to zero, especially in anything client facing. Some would rather leave a role unfilled than let a machine handle it."
Risk-Averse Culture
Parrisa Haghirian, professor of international management at the Kyoto University of Advanced Science, agrees that many Japanese companies are too risk-averse to look at AI. She contrasts this with the more entrepreneurial culture of the US, arguing that Japanese firms are highly sensitive to error, uncertainty, and reputational risk.
"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," Haghirian says.
Government Efforts
The Japanese government is aware of the problem of low AI adoption and is trying to encourage businesses to take up the technology. Last year, its AI Promotion Act was passed by the country's parliament, aiming to use light-touch regulation to encourage businesses to invest more in AI. Tokyo pledges that Japan will become "the world's most-friendly country for developing and utilizing AI".
Challenges Ahead
However, critics argue that at each of these businesses, only a tiny proportion of staff are actually using the AI, and those who do so are only using it to a very limited 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.
"Although the Japanese like playing with gadgets such as smartphones, digital literacy is low here," Ogasawara says. This is highlighted by one report earlier this year, which said Japan faced a shortfall of almost 800,000 IT professionals by 2030.
Shift in Recruitment
But there is a shift in recruitment, with some companies now prioritising "AI literacy" in their new graduate hiring. In the private sector, larger firms such as Kanematsu, a major general trading company, are hiring savvy graduates who can use AI effectively.
Conclusion
Japan's slow adoption of AI is a major concern, given the country's severe labour shortages and productivity problems. While the government is trying to encourage businesses to take up the technology, there are many challenges ahead, including a lack of tech-savvy workers and a risk-averse culture. Without drastic reform, Japan's productivity and competitiveness may suffer.
Source: Joy Online
