News On Japan

How One Japanese Town Succeeded in AI Transformation

Miyazaki, Jul 16, 2025 (News On Japan) - Japan continues to lag behind other countries in digital transformation (DX), including in the use of generative AI. However, one local government has emerged as a leader in implementing effective DX initiatives, offering valuable lessons for overcoming the nation’s status as an AI laggard.

On a recent program, Heiwako Okudaira of Tech Note spoke with Heiwako Okuda, an editorial board member at Tech Keizai Shimbun, to explore why Japan has fallen behind and what can be learned from local successes.

According to a survey published in June by PwC Japan Group, Japan ranked last among major countries when it came to formally integrating generative AI into workplace operations. While some Japanese companies, such as LINE Yahoo, have recently mandated AI use among employees, the nation as a whole remains behind.

Underlying the AI delay is Japan's broader lag in digitalization. To understand this issue, the program looked at the town of Konojo in Miyazaki Prefecture—one of the few municipalities recognized for outstanding digital reform. Konojo has received multiple awards for its achievements, including top rankings in hometown tax donations and My Number Card issuance.

One notable initiative is the town’s “paperless one-stop service desk.” Traditionally, residents are required to fill out numerous forms at city hall. Konojo eliminated this by having staff retrieve necessary information from the resident’s My Number Card, drastically reducing wait times. Tasks that previously took around three hours are now completed in just 45 minutes. Residents have praised the improvements.

This efficiency does not come at the expense of city staff. Behind the scenes, Konojo has implemented systems such as robotic process automation (RPA) to automate data entry and reduce staff workload. These changes have lightened the administrative burden, enabling smoother service delivery.

So why can Konojo achieve what other cities cannot? Okuda identified one key: understanding that analog reform is essential for successful digitalization. For example, many government forms originate from central ministries and include outdated or unnecessary fields. Konojo first reviewed and eliminated such redundancies before proceeding with digital implementation.

An analogy shared during the segment involved a robotic vacuum cleaner. Just as a cluttered room must be tidied before using a robot vacuum, so too must bureaucratic processes be cleaned up before digitization.

Mayor Takahisa Ikeda of Konojo emphasized the importance of human leadership in digital reform. "Technology is just a tool. Whether it's used for good or bad depends on the people behind it," he said. To drive change, Konojo created a new digital coordination division and appointed younger staff to key roles, including in My Number Card promotion.

By putting people at the center of DX and carefully rethinking outdated systems, Konojo has become a model for municipalities across Japan—and possibly a key to helping the country break free from its reputation as a digital laggard.

Source: テレ東BIZ

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