Over 40% of Japanese Companies Remain Hesitant to Adopt AI Amidst Mixed Reactions and Social Debates

  • 24% of Japanese companies have adopted AI; 35% are planning to do so.
  • Over 40% of companies have no plans to adopt AI, reflecting varied acceptance levels.
  • Primary reasons for AI adoption include addressing workforce shortages, reducing labor costs, and speeding up R&D.
  • Obstacles to adoption include fears of job loss, lack of technological expertise, high costs, and reliability concerns.
  • 15% of companies experienced cyberattacks last year; 9% of their partners were also affected.
  • 47% of companies outsource cybersecurity, while 38% use in-house experts.
  • 50% of firms support changing the law requiring spouses to share surnames; 11% oppose it.
  • 14% of respondents believe legal changes could boost employee morale; 10% see potential hiring benefits; 56% expect no impact.

Main AI News:

A recent survey conducted by Reuters and Nikkei Research reveals a significant divide in the adoption of artificial intelligence (AI) among Japanese companies. Despite the rapid global advancement in AI, more than 40% of firms in Japan currently have no plans to incorporate this cutting-edge technology into their operations. The survey, which was carried out from July 3 to July 12 and involved 506 companies, found that approximately 250 firms responded, offering a confidential glimpse into the current state of AI integration in Japan.

According to the findings, around 24% of respondents have already implemented AI within their businesses, while 35% are in the planning stages of adoption. This leaves a notable 41% of companies that do not intend to adopt AI at this time, reflecting a mixed reception to this technological innovation across corporate Japan. The survey underscores the varying degrees of acceptance and readiness for AI among different sectors.

For those companies that have adopted AI, the primary motivations include addressing workforce shortages, with 60% of respondents citing this as a key reason. Additionally, 53% of companies are leveraging AI to reduce labor costs, and 36% aim to speed up their research and development processes. Despite these benefits, several obstacles to AI adoption persist. These include employee concerns about potential job losses, a shortage of technological expertise, high capital investment requirements, and concerns about the reliability of AI systems.

The survey also explored the issue of cybersecurity, revealing that 15% of respondents experienced cyberattacks over the past year, with 9% reporting that their business partners were also targeted. Among those affected by cyberattacks, 23% experienced temporary business interruptions, and 4% reported data breaches. In response to these threats, 47% of companies have opted to outsource their cybersecurity functions, while 38% rely on in-house specialists to safeguard their digital assets.

In a broader social context, the survey highlights that half of the firms support legislative changes regarding the requirement for spouses to share the same surname—a practice that critics argue undermines women’s personal identity and imposes unnecessary bureaucratic burdens. This issue has gained renewed attention following a recent appeal by the Keidanren business lobby for the government to permit married individuals to retain separate surnames. While 50% of survey respondents back this legislative change, 11% oppose it. Proponents argue that such a change would enhance personal dignity and freedom, while opponents worry about potential impacts on family cohesion.

Regarding the potential impact of such legal changes on business operations, 14% of respondents believe that altering the surname requirement could boost employee morale, 10% anticipate improved hiring activities, and 56% expect no significant impact on their business. The survey’s findings reflect a broader conversation about the evolving intersection of technology, personal identity, and business practices in Japan.

Conclusion:

The reluctance of over 40% of Japanese companies to adopt AI highlights a significant divide in technology integration within the market. While a quarter of firms are already leveraging AI and many are planning to follow suit, substantial barriers such as technological gaps, high costs, and workforce concerns hinder broader adoption. The survey also underscores the growing importance of cybersecurity, with a notable percentage of companies experiencing cyber threats and opting for varied defensive strategies. Additionally, the debate over surname laws reflects broader societal and business implications, suggesting that legislative changes could influence employee morale and hiring practices. These factors collectively point to a market that is cautiously navigating the complexities of technological innovation and social change.

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