ONE Reuters recently released research has revealed a nuanced picture of Japanese corporate acceptance and societal attitudes toward technology.
The survey, conducted by Nikkei Research, surveyed 506 companies anonymously from July 3 to 12, with about half responding. It provides a broad picture of how corporate Japan is striking a balance between incorporating artificial intelligence and strengthening cyber security amid changing social attitudes to work.
The survey revealed a striking gap in AI adoption among Japanese businesses. While nearly a quarter of companies have already incorporated artificial intelligence into their operations, a significant portion – over 40% – have yet to make immediate plans to leverage this cutting-edge technology. Specifically, 24% of respondents reported that they have introduced artificial intelligence into their businesses, while an additional 35% plan to do so in the future. However, the remaining 41% stated no intention to adopt artificial intelligence, which shows the varying degrees of technology embrace in corporate Japan.
For companies venturing into AI territory, the incentives are clear and multifaceted. When asked about their goals for AI adoption, 60% of respondents cited the need to address labor shortages—a pressing issue in Japan’s aging society. Additionally, 53% aimed to reduce labor costs, while 36% saw AI as a means to speed up research and development efforts. These figures highlight the potential of artificial intelligence to address some of Japan’s most pressing economic challenges.
However, the path to AI integration is not without obstacles. Companies cited several obstacles in the AI adoption journey. A manager from a transport company pointed to “concern among workers about possible downsizing” as a major concern. Other challenges included the lack of technological expertise within organizations, the need for significant capital expenditures to implement AI systems, and lingering concerns about the reliability of AI technologies. These factors collectively contribute to the hesitancy some companies feel about adopting AI.
The survey also shed light on the cybersecurity landscape facing Japanese businesses. About 15% of respondents reported experiencing cyberattacks in the past year, while an additional 9% indicated that their business partners had fallen victim to such attacks during the same period. The impact of these cyber incidents was significant, with 23% of affected companies or their partners reporting business interruption and 4% experiencing information leaks.
In response to these digital threats, Japanese companies are taking a variety of approaches to strengthen cyber security. Almost half (47%) of companies surveyed outsource their defense measures, while 38% chose to develop in-house expertise. The recent high-profile cyberattack on publisher Kadokawa has further highlighted this issue, prompting the Japanese government to work to strengthen national cybersecurity measures.
Shifting social norms: The last name debate
Interestingly, the survey expanded beyond technological concerns to measure corporate attitudes toward social change, specifically regarding Japan’s marriage laws. Half of the companies surveyed expressed their support for changing the law that currently requires married couples to have the same surname. The practice, which typically results in women adopting their husband’s name in more than 90 percent of marriages, has faced growing criticism for potentially violating individual identity and burdening women with extensive paperwork.
The issue has gained renewed attention following a recent call by business lobby Keidanren for the government to allow married couples to keep their original surnames. In the survey, 50% of respondents supported such a legislative change, compared to 11% who were against it. A manager at a machinery company argued that “the current system damages the dignity and freedom of individuals – and women in particular –”, while a steel official described the proposed change as “a natural demand of the times”. However, not all views were aligned, with one manager at a non-ferrous metals manufacturer expressing concern that allowing separate surnames could “weaken family ties”.
When asked about the potential impact of this legal change on their businesses, 14% of respondents expected a boost to employee morale and 10% expected it to help with recruitment activities. However, the majority (56%) did not foresee any significant impact on their activities.
This comprehensive survey provides valuable insight into the multifaceted challenges and opportunities facing Japanese businesses today. From technology adoption and cybersecurity concerns to evolving social norms, the results paint a picture of a corporate landscape in transition, dealing with the demands of innovation while following complex societal changes.
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