An in-depth look at how artificial intelligence (AI) is being adopted by Japanese businesses is provided by a recent Nikkei Research survey for Reuters. The survey, which was conducted from July 3–12 and included responses from 506 companies, highlights the various approaches and difficulties that companies encounter when attempting to incorporate AI into their operations.
Among the surveyed companies, approximately 24% have already implemented AI, signaling a proactive stance towards leveraging advanced technologies to enhance efficiency and competitiveness. An additional 35% are in the planning stages, indicating a significant intent to adopt AI in the near future. However, the largest cohort, comprising 41% of respondents, currently has no plans to incorporate AI, reflecting a cautious approach or strategic reservations within corporate Japan.
When asked about the primary objectives driving AI adoption, respondents cited various strategic imperatives. Sixty percent highlighted the need to address workforce shortages, underscoring AI’s role in augmenting operational capacity amid Japan’s demographic challenges. By automating routine tasks and optimizing workflows, AI enables companies to navigate labor constraints effectively while maintaining productivity levels.
Reducing labor costs emerged as another compelling motivation, cited by 53% of respondents. AI’s ability to streamline operations and optimize resource allocation presents an opportunity for cost savings, particularly in sectors reliant on labor-intensive processes. Moreover, 36% of companies identified accelerating research and development (R&D) efforts as a key goal in adopting AI, emphasizing its potential to enhance innovation cycles and product development timelines.
Despite these motivations, several obstacles to AI adoption were identified by survey participants. Foremost among these concerns is employee apprehension about job security, with one manager from a transportation company highlighting anxiety among staff regarding potential workforce reductions due to AI deployment. Addressing these concerns through effective communication and reskilling initiatives will be crucial for fostering employee buy-in and mitigating resistance to technological change.
Technical challenges also loom large, with a notable lack of expertise in AI technologies cited as a barrier by survey respondents. Building internal capabilities and attracting skilled talent capable of developing and managing AI systems are critical challenges that companies must navigate to realize the full potential of AI investments. Moreover, the substantial capital expenditures associated with implementing AI solutions present a financial barrier, particularly for smaller enterprises with limited resources.
Reliability and cybersecurity concerns further complicate the adoption landscape, with companies apprehensive about the integrity and security of AI systems. Ensuring robust cybersecurity measures and integrating safeguards against potential vulnerabilities are paramount to building trust in AI technologies and safeguarding sensitive business data from cyber threats.
The survey also shed light on cybersecurity challenges faced by Japanese businesses, revealing that 15% of respondents experienced cyberattacks in the past year. Additionally, 9% reported that their business partners had fallen victim to cyber incidents during the same period. These attacks resulted in temporary business disruptions for 23% of affected companies and information leaks for 4%, underscoring the urgent need for enhanced cybersecurity measures to protect business continuity and mitigate operational risks.
In response to these threats, companies have adopted diverse strategies to bolster cybersecurity defenses. Nearly half (47%) of respondents reported outsourcing cybersecurity functions to specialized providers, leveraging external expertise to fortify their defenses against evolving cyber threats. Concurrently, 38% indicated maintaining in-house cybersecurity specialists, reflecting a dual approach of combining external support with internal capabilities to enhance cybersecurity resilience.
Beyond technological challenges, the survey also addressed social issues impacting business operations in Japan, notably the debate surrounding the country’s surname law. Currently, married couples are legally required to adopt the same surname, a practice predominantly resulting in women taking their husband’s surname. This practice has come under scrutiny for its implications on personal identity and gender equality, with critics arguing that it places undue burdens on women by necessitating bureaucratic processes to change surnames.
Support for legislative change regarding the surname law emerged prominently in the survey findings, with 50% of respondents expressing support for allowing married individuals to retain their surnames. Advocates for reform argue that the current system diminishes individual dignity and restricts personal freedom, particularly for women. In contrast, opponents, including a manager from a non-ferrous metal manufacturer, voiced concerns about potential impacts on family cohesion and societal norms, highlighting the complex socio-cultural considerations at play.
In terms of potential business impacts, opinions varied among survey respondents regarding the proposed legislative change. Fourteen percent believed that such reforms would positively impact employee morale, citing the potential for greater personal autonomy and workplace satisfaction. Additionally, 10% anticipated positive effects on hiring practices, suggesting that reforms could contribute to creating a more inclusive and equitable work environment.
A pragmatic outlook among businesses, however, balancing societal considerations with the operational realities of navigating regulatory changes in a competitive business environment, is manifested in the majority of respondents (56%) who anticipated no significant impact on their business operations, indicating a neutral stance towards the potential legislative change.
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