Tokyo: Facing acute labour shortages, an ageing population, and long-standing productivity issues, Japan would seemingly be an ideal environment for the adoption of artificial intelligence (AI). Yet, AI use in Japanese workplaces remains relatively slow and cautious compared to the United States and the United Kingdom.

According to United News of Bangladesh, Japan’s response to AI is beginning to resemble one of the country’s traditional, slow-moving Noh plays. While everyone agrees that urgent action is needed, the actors remain largely frozen in place. This cautious approach does little to address the country’s immediate economic challenges. Data from the Organisation for Economic Co-operation and Development (OECD) indicates that only 8.4% of Japanese workers utilize AI in their jobs, which is low compared to 50% in the US and 32% in the UK.

Austin Xu, co-founder of US start-up Kuse AI, attributes the slow adoption to the conservative and risk-averse nature of many Japanese companies. His company has recently opened an office in Japan to market its AI systems to local businesses. Xu notes that Japanese companies often require more evidence before trusting AI, in contrast to the US where companies are more open to integrating AI as part of normal workflows.

Parrisa Haghirian, a professor at Kyoto University of Advanced Science, also believes risk aversion is a significant factor. She points out that Japanese companies are particularly sensitive to errors and uncertainty, which limits AI use to low-risk activities like writing and document summarization, rather than core operations and decision-making.

The Japanese government is aware of the issue and has passed the AI Promotion Act to encourage AI adoption. The Ministry of Finance reports that AI use in businesses has increased, with 75% of companies now using the technology. However, critics argue that this figure masks the limited use of AI within these companies.

Prof Yasushi Ogasawara from Meiji University highlights another challenge: a lack of workers with strong technology skills. Japan could face a shortage of nearly 800,000 IT professionals by 2030. Many companies also continue to rely on outdated computer systems, which further complicates AI integration.

Despite these challenges, there are signs of change. Some companies are prioritizing ‘AI literacy’ when hiring new graduates, and firms like Kanematsu are hiring graduates with strong AI skills. However, experts like Ogasawara caution that the pace of change remains limited, and more willingness to embrace change is needed for Japan to achieve the productivity gains it needs from AI.