News On Japan

Japan Urged to Stop Falling Behind as AI Transforms Global Business

TOKYO - Following the explosive rise of generative AI tools like ChatGPT since their debut in 2022, the global business world is rapidly transforming. Yet, while companies in the United States and China rush to adopt these technologies, Japan is still lagging behind.

In a recent international webcast titled "World Economy," experts discussed how Japanese businesses can better embrace AI to improve productivity, especially among small and medium enterprises (SMEs) that account for 99.7% of the country's corporate landscape.

Generative AI, unlike previous forms of automation, can create text, images, and more with minimal human input. According to a 2023 Bloomberg forecast, the global market for generative AI is expected to grow by 42% annually, reaching 1.3 trillion dollars by 2032. Major corporations such as Coca-Cola are already leveraging these tools to analyze customer behavior and develop targeted products and marketing strategies. However, a Ministry of Internal Affairs survey found that only 9.1% of Japanese individuals had experience using generative AI, compared to 46.3% in the U.S. and 56.3% in China.

Experts say this hesitancy stems from cultural attitudes that demand perfection. In Japan, some companies initially banned the use of AI on corporate devices out of fear of errors or data security breaches. "There’s a tendency in Japan to avoid new technologies unless they work 100% as expected," said Makoto Akai, CEO of MKT International. He noted that businesses in the U.S. are more likely to try out tools early, claim successes, and use them for career advancement.

Akai emphasized that AI does not have to revolutionize every business model overnight. Instead, it can start small, with routine tasks such as writing customer emails, summarizing documents, or comparing versions of contracts. These time-consuming but structured tasks are where AI offers immediate value. "It’s about improving the day-to-day work employees already do," Akai said.

Joining him was Futoshi Motohima, who handles product planning at Lenovo Japan. He argued that one of the best places to start is with individual workflows, particularly through prompt engineering—writing clear and detailed instructions for AI tools. "When you clearly define the context and the goal, the AI response improves significantly," said Motohima.

Tools like Microsoft’s Copilot are making these capabilities more accessible. Bundled with the latest Windows 11 PCs, Copilot can transcribe meetings, retrieve files via natural language queries, and even summarize YouTube content. These features not only save time but also open up new possibilities for older or understaffed organizations. Motohima noted that companies upgrading from Windows 10—whose support ends in October—will benefit from built-in AI tools without incurring additional costs.

Both experts underlined the importance of learning by doing. "The key is to stop making excuses, stop putting it off, and just start," said Motohima. He pointed out that even failed attempts to use AI can yield valuable insights. For companies hesitant about where to begin, identifying areas where employees spend the most time—such as meetings or responding to emails—is a practical starting point.

The panel concluded that early adoption of generative AI is not just about productivity gains but also about attracting younger workers, improving job satisfaction, and enhancing a company’s reputation as forward-thinking. As Japan continues to face demographic challenges, experts say that using AI not as a replacement but as an assistant could be vital to sustaining business competitiveness.

Source: テレ東BIZ

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