AI Emerges as Key Solutions to Japan’s Labor Crisis

Apr 09, 2026 | News On Japan

TOKYO - A record number of companies went bankrupt due to labor shortages, spotlighting AI and avatar solutions showcased at the EC and Store Week Spring exhibition held at Tokyo Big Sight on April 8th.

Among the various technologies showcased to industry professionals, the “Store Labor Shortage Countermeasures Expo Spring” attracted particular attention.

Fumiya Tanno, sales director at exhibition organizer RX Japan, explained: "While the EC market has expanded following the COVID-19 pandemic, physical stores offering real-world experiences are also growing, and addressing labor shortages—one of their biggest challenges—cannot be overlooked, which is why we organized this event."

According to a survey released by Tokyo Shoko Research on April 8th, 442 companies went bankrupt in fiscal 2025 due to labor shortages, marking a record high.

At the exhibition, companies presented visions of “future customer service” aimed at addressing workforce shortages.

At a booth jointly exhibited by TANAX and AVITA, an AI humanoid named “Hinata” demonstrated its ability to engage customers through eye contact and natural conversation, creating a sense of familiarity.

Meanwhile, avatar-based systems designed to provide hospitality in place of human staff were also introduced.

One such technology combined avatars with virtual fitting experiences, allowing users to select clothing and take a photo, after which an image of themselves wearing the chosen outfit appeared on screen.

When asked for styling advice, such as whether a skirt or pants would be better, the avatar responded with suggestions like preferring a pants style.

Additionally, avatars operated remotely by staff were able to respond to more detailed inquiries in real time.

Other technologies on display included AI cameras capable of explaining products when customers picked them up.

Participating companies plan to continue promoting these solutions at exhibitions, aiming to create a society where the presence of avatars becomes the norm.

Kei Shimada, executive officer at AVITA, said: "Expectations are rising for a world where robots and similar technologies become more familiar, and we believe there will be strong interest. We want to create a society in Japan where customer service through AI and avatars is the standard."

Source: FNN

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