Japan’s cautious companies lag in AI adoption

Japanese companies face acute labour shortages, ageing demographics and weak productivity, but workplace AI adoption remains cautious compared with peers. An OECD report at the end of last year found just 8.4% of Japanese workers use AI as part of their job, while separate figures put the US at 50% and the UK at 32%.

Executives and academics cited conservative decision-making, consensus culture and low tolerance for errors, especially in client-facing work. AI is more commonly used for low-risk tasks such as writing, summarising and information gathering than for core operations, multi-step workflows or decision-making. Healthcare is described as particularly slow, with some hospitals still not fully digitalising patient files.

Tokyo is trying to accelerate adoption through the AI Promotion Act, using light-touch regulation and pledging to make Japan “the world’s most-friendly country for developing and utilizing AI”. The Ministry of Finance says 75% of companies now use AI, up from 11% five years ago, though critics say usage often involves only a small share of staff and limited applications.

Skills shortages remain another barrier. One report said Japan faced a shortfall of almost 800,000 IT professionals by 2030. Some companies are starting to prioritise AI literacy in graduate hiring, but broader reform remains incremental.