Given their severe labor shortages, aging population, and ongoing productivity issues, Japanese businesses ought to be ideal for adopting artificial intelligence (AI). However, adoption in many companies is still slow and cautious when compared to the US and the UK.
The slow-moving, traditional Noh dramas of Japan are starting to mimic the country’s response to AI.
The cry is repeated with earnest unanimity as all of the disguised individuals up on stage concur that immediate action is required. The performers, however, stay still.
Excellent for enhancing drama, awful for tackling the nation’s current problems.
According to data, Japan has lagged behind in the application of AI in the workplace.
According to a research released at the end of last year by the Organization for Economic Co-operation and Development (OECD), just 8.4% of Japanese workers utilize AI in their work.
Separate data, however, place the UK at 32% and the US at 50%. in Singapore.
Why, then, is Japan taking so long? According to Austin Xu, co-founder of the US start-up Kuse AI, this is because Japanese businesses are risk averse and conservative.
In order to offer its AI technologies to businesses in Japan, his company just opened an office there.
Why Is Japan Slow to Adopt AI?
He continues by saying that before Japanese businesses can adopt AI, they need more evidence.
Many Japanese businesses are too risk averse to consider AI, according to Parrisa Haghirian, an international management professor at the Kyoto University of Advanced Science.
Adopting it presents the same difficulties as implementing any other change in Japanese businesses. Because of this, the application of AI is currently relatively restricted and cautious, particularly in the workplace.
Additionally, Haghirian argues that Japanese businesses are extremely sensitive to mistake, uncertainty, and reputational risk, contrasting this with the more entrepreneurial culture of the US.
Japan Steps Up Efforts to Boost AI Adoption
According to reports, Japan’s healthcare industry is particularly hesitant to adopt AI; some institutions have not even completely digitalized patient records. “Paper documents accumulate at a staggering scale,” a Japanese hospital employe who wished to remain anonymous said. “It’s like the Stone Age.”
Aware of the broader issue of poor AI adoption, the Japanese government is working to encourage more businesses to utilize the technology.
The nation’s parliament enacted the AI Promotion Act last year.
This seeks to incentivize companies to invest more in AI by lax regulation. “The world’s most-friendly country for developing and utilizing AI” is what Tokyo promises to become.
Japan Struggles With AI Skills and Outdated Systems
However, detractors contend that just a small percentage of employes at each of these companies are truly utilizing the AI, and those that do are only doing so to a very restricted degree.
There aren’t enough tech-savvy workers in the workforce, according to Meiji University professor Yasushi Ogasawara, a specialist on Japan’s social structure and technology.”Digital literacy is low here, even tho the Japanese enjoy playing with gadgets like smartphones,” he claims.
This is demonstrated by a survey released earlier this year that said Japan will have a shortage of over 800,000 IT workers by 2030.
It is also said that many businesses suffer with antiquated computer systems, with about 60% of them being older than 20 years.
AI Skills Become a Priority for Japanese Employers
However, recruiting practices are changing, with some businesses now giving “AI literacy” first priority when employing recent graduates.
Smart graduates like Uta Yamaguchi, who joined in April, are being hired by larger private sector companies like Kanematsu, a significant general trade corporation.
She explains, “I use AI a lot at work.” “A lot of my coworkers use it frequently. For composing emails for my supervisor, summarizing complex material, and recording and summarizing meetings.”
However, she claims that AI systems capable of doing multi-step tasks on their own are still essentially unknown in Japan, in contrast to the US.
But now they’re on board with her firm, which is renowned for its progressive outlook.
“Change in Japan is limited” according to Ogasawara. He also states: “Japanese society expects painless reform.”
