Nearly half of Japanese companies have no plan for AI use

Nearly half of Japanese companies have no plan for AI use is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Over 40% of Japanese companies have no plans to adopt AI technology, while only a quarter of Japanese companies has utilised AI, according to a survey conducted by Nikkei Research.
• the survey illustrates the country’s mixed stance on AI adoption and highlights the challenges and opportunities in embracing this technology.

OUR TAKE
The use of AI has now become a trend, not only because some of its capabilities, such as computing power, are difficult for individuals to catch up with, but also because its efficiency can save users a lot of costs. Nearly half of Japanese companies have no plans to utilise AI, which could hinder their competitiveness in the market. After all, technology can go far beyond imagination.
–Ashley Wang, BTW reporter

What happened

More than 40% of Japanese companies have no plans to adopt AI technology, while only a quarter of Japanese companies have incorporated AI into their operations, while, according to a Reuters survey conducted by Nikkei Research. The survey, which polled 506 companies between July 3-12, saw responses from approximately 250 firms on the condition of anonymity.

The primary motivations for adopting AI include addressing worker shortages, reducing labour costs, and accelerating research and development. However, the survey also revealed several obstacles to AI adoption. Employee anxiety over potential job losses, lack of technological expertise, high capital expenditure, and concerns about AI’s reliability were cited as major hurdles.

Cybersecurity emerged as a critical concern, with 15% of companies experiencing cyberattacks in the past year and 9% reporting attacks on their business partners. High-profile cyberattacks, such as the one on publisher Kadokawa, have spurred the Japanese government to enhance cybersecurity measures. This context underscores the importance of robust digital defences as AI becomes more integrated into business operations.

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Why it’s important

The survey not only shows the current tech sphere in Japan but also presents the concerns related to AI technology. Its hesitance toward widespread AI adoption represents concerns over job security and implementation costs, which are crucial in the context of Japan’s aging and declining population.

These various attitudes in AI use not only underscores Japan’s cautious approach to technological change but also raises crucial questions about its future competitiveness. In a global economy increasingly driven by AI and digital transformation, Japan risks falling behind if it fails to fully harness these innovations. After all, there is no doubt that embracing AI could unlock significant economic potential while navigating cultural and technological challenges.

Moreover, cybersecurity concerns indicate the need for robust digital defences as AI adoption increases. The reported cyberattacks and their impact on business operations directly point out how the vulnerabilities that come with technological advancement.