More than 40% of Japanese companies have no plans to use AI: Reuters survey

Applications of AI


TOKYO (Reuters) – About a quarter of Japanese companies have introduced artificial intelligence (AI) into their operations, but more than 40 percent have no plans to use the cutting-edge technology, according to a Reuters survey released on the 28th.

The survey was conducted by Nikkei Research at the request of Reuters, asking a variety of questions to 506 companies between July 3 and 12, with approximately 250 companies responding on the condition of anonymity.

Approximately 24% of respondents have already introduced AI into their operations, 35% are planning to do so, while the remaining 41% have no such plans, revealing a disparity in the level of acceptance of technological innovation among Japanese companies.

When asked to give multiple answers regarding the purpose of introducing AI, 60% of respondents answered “to address labor shortages,” followed by “to reduce labor costs” at 53% and “to accelerate research and development” at 36%.

When asked about the hurdle to implementation, the CEO of one transportation company cited “employee concerns about personnel cuts.”

Other obstacles include a lack of technical expertise, high capital expenditures and concerns about reliability, according to the survey.

The survey also revealed that 15% of respondents had experienced a cyber attack in the past year, and 9% had a business partner that had been attacked during the same period.

Regarding the extent of the damage, 23% of companies that had been attacked by cyberattacks or whose business partners had been attacked said that their operations had been temporarily halted, and 4% said that they had suffered data leaks.

When it comes to strengthening cybersecurity, 47% of respondents said they outsource their defense, while 38% said they have in-house experts.

Well-known publisher Kadokawa has also been among the victims of cyber attacks in recent months, prompting the government to take steps to strengthen cybersecurity measures.

The survey also found that half of the companies support changing the law that requires married couples to use the same surname. In more than nine in 10 marriages, the woman takes her husband's surname, but opponents say the practice takes away part of women's identity and burdens them with the mountain of paperwork required to make the change.

The issue was brought back into the spotlight last month when the Japan Business Federation's economic group called on the government to allow married couples to have different surnames.

The survey found that 50% of respondents supported such legal reform, while 11% were opposed.

“The current system is damaging to the dignity and freedom of individuals, especially women,” wrote a manager at a machinery manufacturer. An executive at a steel manufacturer said change was “the call of the times.”

On the other hand, the president of a non-ferrous metals manufacturer opposed allowing married couples to have different surnames, stating that it could “weakening family ties.”

When asked how the change in the law would affect their business, 14% of respondents said it would boost employee morale, 10% said it would help with recruitment efforts, while 56% said they did not expect it to have any impact.

(Editing by Kiyoshi Takenaka and Christopher Cushing)



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