Why are Japanese firms so tardy when it comes to adopting artificial intelligence (AI)? The answer, according to experts, lies in their conservative corporate culture and a general risk aversion. Despite acute labour shortages, AI usage remains sluggish, with just 8.4% of workers using AI as part of their job compared to 50% in the US.

According to Austin Xu, co-founder of Kuse AI, Japanese companies are more hesitant about AI, often preferring to leave roles unfilled than risk a machine handling them. Professor Parrisa Haghirian suggests that while US companies embrace AI as a helper, Japanese firms need more proof before fully trusting it.

The healthcare sector in Japan is particularly slow, with some hospitals still using paper documents. The government, aware of the issue, has passed an act to encourage businesses to invest in AI but faces criticism for its limited impact. Only 75% of companies now use AI, up from just 11% five years ago.

Some firms are starting to prioritize “AI literacy” in their hiring practices, with Kanematsu, a major trading company, bringing on graduates who can handle AI effectively. However, larger multi-step tasks handled autonomously by AI systems remain virtually unheard of in Japan.