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Over 40% of Japanese Companies Lack AI Implementation Plans

ByYasmeeta Oon

Jul 20, 2024

Over 40% of Japanese Companies Lack AI Implementation Plans

A recent Reuters survey conducted by Nikkei Research has revealed that nearly 25% of Japanese companies have integrated artificial intelligence (AI) into their operations. However, over 40% of businesses have no plans to adopt this advanced technology.

Source: Japan’s Ministry of Internal Affairs and Communications
Status of AI AdoptionPercentage of Companies
Already using AI24%
Planning to use AI35%
No plans for AI41%

The survey, conducted from July 3-12, involved 506 companies, with about 250 responding anonymously. The responses highlight varied approaches to AI in corporate Japan.

Companies adopting AI are driven by several factors. About 60% aim to address worker shortages, 53% want to reduce labor costs, and 36% seek to accelerate research and development.

Despite the benefits, some companies face challenges. A transportation company manager mentioned employee anxiety over potential job cuts. Other obstacles include a lack of technological expertise, high capital costs, and concerns about AI reliability.

The survey also addressed cybersecurity issues. Over the past year, 15% of respondents experienced cyberattacks, and 9% reported attacks on their business partners. Among those affected, 23% faced temporary business halts, and 4% suffered information leaks. To enhance cybersecurity, 47% of companies are outsourcing defense, while 38% rely on in-house specialists.

Recent high-profile cyberattacks, such as the one on publisher Kadokawa, have prompted the government to strengthen cybersecurity measures.

The survey also touched on the issue of marital surname laws. Currently, Japanese law requires spouses to use the same surname, typically the husband’s. This practice is viewed by some as a burden on women. The Keidanren business lobby recently urged the government to allow married individuals to keep their surnames.

Survey responses showed that 50% of companies support changing the law, while 11% oppose it. A machinery firm manager argued that the current system harms individual dignity and freedom, particularly for women. Conversely, a non-ferrous metal manufacturer manager warned that separate surnames could weaken family bonds.

When asked about the potential impact of such a legal change, 14% of respondents believed it would boost employee morale, 10% thought it would aid hiring efforts, and 56% expected no impact.


Featured Image by DC Studio on Freepik

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Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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