Why Japanese firms are being so slow to use AI
Japanese firms are adopting artificial intelligence more slowly than counterparts in the US, UK and Singapore, despite labour shortages, an ageing population and weak productivity that could make automation especially valuable. The article attributes this caution largely to conservative corporate cultures, consensus-based decision-making and a low tolerance for errors or reputational risk, particularly in customer-facing work.
An OECD report found that 8.4% of Japanese workers use AI at work, compared with figures of 50% in the US and 32% in the UK; Singapore reports 56% using it several times weekly. Japanese businesses mainly use generative AI for lower-risk activities such as drafting, summarising and research, rather than core operations or decisions. Healthcare is particularly behind, with some hospitals still relying heavily on paper records, while the government has passed an AI Promotion Act to encourage wider adoption.
- Japanese workplace AI use remains far below comparable countries.
- Risk aversion and consensus culture slow implementation.
- AI is mostly confined to low-risk administrative tasks.