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Job Loss Fears, Costs See 40% of Japanese Firms Shunning AI

Bosses also cited a lack of technological expertise and concerns about reliability for avoiding using artificial intelligence


People walk down a street past Japanese national flags in a shopping district in Tokyo, on March 19, 2024. Photo: Reuters

 

More than 40% of Japanese firms say they have no plans to adopt artificial intelligence, despite the global frenzy over the technology.

Nearly a quarter of the nation’s companies have adopted AI in their businesses, a Reuters survey showed on Thursday, but a significant number admitted they don’t intend to embrace the technological innovation.

The survey, conducted by Nikkei Research, pitched a range of questions to 506 companies from July 3-12 with roughly 250 firms responding, on condition of anonymity.

About 24% of respondents said they have already introduced AI in their businesses and 35% are planning to do so, while the remaining 41% have no such plans.

Asked for objectives when adopting AI in a question allowing multiple answers, 60% of respondents said they were trying to cope with a shortage of workers, while 53% aimed to cut labour costs and 36% cited acceleration in research and development.

 

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As for hurdles to introduction, a manager at a transportation company cited “anxiety among employees over possible headcount reduction”.

Other obstacles include a lack of technological expertise, substantial capital expenditure and concern about reliability, the survey showed.

The poll also showed 15% of respondents have experienced cyberattacks over the past year and 9% had business partners that suffered cyberattacks during the same period.

Asked about damage, 23% of those that suffered cyberattacks themselves or had business partners that were targets said business was temporarily halted, and 4% said they suffered information leak.

On steps to enhance cybersecurity, 47% of respondents said they were outsourcing defence whereas 38% said they had in-house specialists.

Cyberattack victims in recent months included high-profile publisher Kadokawa whose case prompted the government to work towards strengthening cybersecurity measures.

 

  • Reuters with additional editing by Sean O’Meara

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.