Japanese Firms Lag US and UK in AI Adoption

Japanese companies are integrating artificial intelligence at a much slower rate than firms in the United States and United Kingdom, despite facing acute labor shortages and low productivity. Data from the Organisation for Economic Co-operation and Development shows only 8.4% of Japanese workers use AI in their roles, while the adoption rate in the US reaches 50%.

The Government of Japan passed the AI Promotion Act to stimulate investment through light-touch regulation, aiming to make the nation the most friendly environment for AI development. However, critics suggest actual usage remains confined to low-risk tasks. While the Ministry of Finance of Japan claims business adoption has risen to 75%, this figure may be misleading, as it likely reflects limited use by a small number of employees within those companies.

Experts attribute the sluggish adoption to a conservative, risk-averse corporate culture that is intolerant of errors. Additional barriers include outdated computer systems and a general lack of digital literacy among the workforce. In response to the market gap, US start-up Kuse AI has established a local office to sell AI systems directly to Japanese firms.