Japan, facing severe labour shortages, an ageing population, and chronic productivity issues, might seem like a natural hotspot for artificial intelligence (AI) adoption. Yet, data suggests that Japanese workplaces are far more hesitant to integrate AI than their counterparts in the US and UK.
According to a report by the Organisation for Economic Co-operation and Development (OECD) from late last year, only 8.4% of Japanese workers use AI in their jobs. In contrast, separate statistics indicate that 50% of US workers and 32% of UK workers use AI. Singapore, which has the highest AI adoption in Asia, reports that 56% of its workers use AI multiple times a week.
Experts attribute Japan's slow uptake to a conservative, risk-averse corporate culture. Austin Xu, co-founder of US-based AI firm Kuse AI, which recently expanded to Japan, notes that consensus-driven processes and a low tolerance for AI errors, especially in client-facing roles, hinder adoption. "Some would rather leave a role unfilled than let a machine handle it," he says. In the US, by contrast, businesses are more willing to let AI agents try and then correct them.
Parrisa Haghirian, professor of international management at Kyoto University of Advanced Science, echoes this view, saying Japanese firms are highly sensitive to error and reputational risk. As a result, generative AI is mainly used for low-risk tasks like writing, summarising, or information gathering, rather than core operations or decision-making.
The healthcare sector is particularly slow, with some hospitals still relying heavily on paper records. One hospital employee, who requested anonymity, described the situation as "like the Stone Age," with paper documents accumulating at a staggering scale.
The Japanese government has acknowledged the problem and passed the AI Promotion Act last year, aiming to use light-touch regulation to encourage AI investment. Tokyo has pledged to become "the world's most-friendly country for developing and utilizing AI." The Ministry of Finance reports that AI adoption by businesses has risen to 75%, up from 11% five years ago, but critics argue that only a small fraction of staff within these companies actually use the technology.
Prof Yasushi Ogasawara of Meiji University points to low digital literacy in Japan, despite a fondness for gadgets. A report earlier this year warned of a shortfall of nearly 800,000 IT professionals by 2030. Additionally, around 60% of companies struggle with computer systems that are over 20 years old.
Ogasawara also suggests that Japanese companies prioritise maintaining full employment over adopting AI that could lead to job 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.
Despite these challenges, some companies are shifting their recruitment strategies, prioritising "AI literacy" in new graduates. Uta Yamaguchi, who joined major trading company Kanematsu in April, says she uses AI frequently for tasks like writing emails and summarising documents. However, she notes that autonomous AI systems capable of handling multi-step work are still virtually unheard of in Japan, unlike in the US.
Ogasawara remains cautious about the pace of change, stating, "Japanese society expects painless reform, so I think it can be said that drastic reform is difficult, to say the least."
Source: BBC News
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