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40% of Japanese Companies Not Planning to Use AI: Reuters Survey

A recent survey conducted by Reuters, in collaboration with Nikkei Research, reveals that while nearly a quarter of Japanese companies have adopted artificial intelligence (AI) in their operations, over 40% have no plans to integrate the technology. The survey, conducted between July 3-12, gathered responses from approximately 250 out of 506 companies polled, all of which participated anonymously.

AI Adoption in Japan

  • Current Adoption: About 24% of companies have already implemented AI in their business processes.
  • Future Plans: 35% of respondents are planning to adopt AI in the near future.
  • No Plans: 41% of companies have no intention of using AI.

Objectives for AI Implementation

The survey allowed respondents to select multiple objectives for adopting AI. The key reasons cited were:

  • Addressing Workforce Shortages: 60% of respondents aim to use AI to cope with a shortage of workers.
  • Reducing Labor Costs: 53% are motivated by the potential to cut labor costs.
  • Accelerating R&D: 36% are looking to speed up research and development.

Barriers to AI Adoption

Several challenges hinder the implementation of AI in Japanese companies:

  • Employee Anxiety: Concerns about potential job losses create resistance among employees.
  • Technological Expertise: A lack of expertise in AI technology.
  • Capital Expenditure: High initial investment costs.
  • Reliability Concerns: Doubts about the reliability of AI solutions.

Cybersecurity Concerns

The survey also highlighted significant cybersecurity issues:

  • Cyberattack Incidents: 15% of respondents experienced cyberattacks in the past year, and 9% reported that their business partners were targeted.
  • Impact of Cyberattacks: Among those affected, 23% reported temporary business halts, and 4% suffered information leaks.
  • Cybersecurity Measures: To counter these threats, 47% of companies outsource their cybersecurity defense, while 38% rely on in-house specialists.

Support for Surname Legislation Change

The survey also touched on social issues, specifically the law requiring spouses to use the same surname:

  • Support for Change: 50% of respondents support changing the law, while 11% oppose it.
  • Impact on Business: 14% believe the change would boost employee morale, and 10% think it would aid in hiring, although 56% expect no impact.

The surname law came under renewed scrutiny after the Keidanren business lobby suggested that the government allow married individuals to retain their surnames. Proponents argue that the current system undermines women’s identity and burdens them with extensive paperwork.

Also Read: https://jininews.pk/2024/07/21/google-to-remove-low-functioning-and-low-quality-apps-from-play-store/

Conclusion

This survey highlights the diverse perspectives within Japanese companies regarding AI adoption, cybersecurity, and social issues. While there is a significant push towards embracing AI and strengthening cybersecurity measures, many firms remain hesitant due to various challenges. Additionally, the debate over surname legislation reflects ongoing societal changes and their potential impact on business practices.

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Ahsan Khan

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