Key facts
- Over 80% of Japanese companies use AI in limited capacity or not at all.
- Only 16% of surveyed firms have deployed AI company-wide.
- Japan's generative AI adoption rate lags behind China, Germany, and the U.S.
- Many Japanese firms are undecided on AI adoption or future AI budgets.
- A strong majority of Japanese companies favor domestic investment.
A Reuters poll indicates that a significant majority of Japanese companies are not fully embracing artificial intelligence, with over 80% using it only in limited capacities or not at all. This trend could impede official efforts to enhance productivity. The survey, conducted by Nikkei Research for Reuters, found that only 16% of the 219 responding companies have integrated AI company-wide.
About 60% of respondents reported using AI in specific departments or limited ways, while 18% are undecided about AI implementation and 6% are not considering it. This contrasts with other major industrial nations, where generative AI adoption for at least one task is significantly higher; Japan's rate stands at 86.4%, compared to 98.1% in China, 91.6% in Germany, and 90.9% in the United States.
Regarding future AI budgets, 4% of companies anticipate annual growth of 50% or more, and 21% expect an increase between 10% and 50%. However, 31% remain undecided about their AI spending plans for the next one to two years. A manager at a wholesaler noted AI use is limited to tasks like document creation, while a real estate firm official stated they "don't know how to put it in use."
In terms of resource allocation, 82% of respondents expressed a preference for domestic investment over overseas investment, aligning with Prime Minister Sanae Takaichi's growth strategy to boost domestic investment in key areas like AI, semiconductors, and quantum technology. This preference is partly influenced by the weak yen, which makes overseas investments more expensive in yen terms and boosts exporters' earnings.