Over 40% of Japanese firms lack AI adoption plans

A Reuters survey released recently laid bare a nuanced picture of Japanese corporate acceptance and social attitudes toward technology.

The survey, conducted by Nikkei Research, anonymously polled 506 companies from 3-12 July, with around half responding. It provides a broad view of how corporate Japan is striking a balance between incorporating AI and tightening cybersecurity amid changing social attitudes toward work.

The survey revealed a striking divide in AI adoption across Japanese businesses. While nearly a quarter of companies have already integrated AI into their operations, a significant portion – over 40% – have yet to make any immediate plans to leverage this cutting-edge technology. Specifically, 24% of respondents reported having introduced AI in their businesses, with an additional 35% planning to do so in the future. However, the remaining 41% indicated no intention to adopt AI, illustrating the varying degrees of technological embrace within corporate Japan.

For companies venturing into AI territory, the motivations are clear and multifaceted. When asked about their objectives for AI adoption, 60% of respondents cited the need to address labour shortages—a pressing issue in Japan’s ageing society. Additionally, 53% aimed to reduce labour costs, while 36% saw AI as a means to accelerate research and development efforts. These figures highlight the potential of AI to address some of Japan’s most pressing economic challenges.

However, the path to AI integration is not without its obstacles. Companies reported several hurdles in their AI adoption journey. A manager from a transportation company pointed to “anxiety among employees over possible headcount reduction” as a significant concern. Other challenges included a lack of technological expertise within organisations, the need for substantial capital expenditure to implement AI systems, and lingering concerns about the reliability of AI technologies. These factors collectively contribute to the hesitation some companies feel about embracing AI.

The survey also shed light on the cybersecurity landscape facing Japanese businesses. A concerning 15% of respondents reported experiencing cyberattacks over the past year, with an additional 9% indicating that their business partners had fallen victim to such attacks during the same period. The impact of these cyber incidents was substantial, with 23% of affected companies or their partners reporting temporary business halts, and 4% suffering information leaks.

In response to these digital threats, Japanese companies are taking varied approaches to enhance their cybersecurity. Nearly half (47%) of the surveyed firms are outsourcing their defense measures, while 38% have opted to develop in-house expertise. The recent high-profile cyberattack on publisher Kadokawa has further spotlighted this issue, prompting the Japanese government to work towards strengthening national cybersecurity measures.

Shifting social norms: The surname debate

Interestingly, the survey extended beyond technological concerns to gauge corporate attitudes towards social change, specifically regarding Japan’s marriage laws. Half of the surveyed firms expressed support for changing the law that currently requires married couples to share the same surname. This practice, which typically results in women adopting their husband’s name in more than 90% of marriages, has faced growing criticism for potentially infringing on individual identity and burdening women with extensive paperwork.

The issue has gained renewed attention following the Keidanren business lobby’s recent appeal to the government to allow married individuals to retain their original surnames. In the survey, 50% of respondents supported such a legislative change, compared to 11% who opposed it. A manager at a machinery firm argued that “the current system is hurting individuals’ – and especially women’s – dignity and freedom,” while a steelmaker official described the proposed change as the “natural demand of the times.” However, not all views were aligned, with a manager at a non-ferrous metal manufacturer expressing concern that allowing separate surnames could “weaken family bonds.”

When asked about the potential impact of this legal change on their businesses, 14% of respondents anticipated a boost in employee morale, and 10% expected it to aid in hiring activities. However, a majority (56%) foresaw no significant impact on their operations.

This comprehensive survey provides valuable insights into the multifaceted challenges and opportunities facing Japanese businesses today. From technological adoption and cybersecurity concerns to evolving social norms, the results paint a picture of a corporate landscape in transition, grappling with the demands of innovation while navigating complex social changes.

See also: AI could unleash £119 billion in UK productivity

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Tags: ai, artificial intelligence, japan