40% of Japanese companies not planning to use AI

According to a Reuters study published on Thursday, nearly a quarter of Japanese businesses have used artificial intelligence (AI), while more than 40% have no plans to employ the cutting-edge technology.

The study, conducted by Reuters by Nikkei Research, posed a series of questions to 506 organizations between July 3 and 12, with approximately 250 firms replying anonymously.

Approximately 24% of respondents claimed they have already implemented AI in their organizations, 35% plan to do so, and the remaining 41% have no such intentions, demonstrating varied degrees of embracing technological innovation in corporate Japan.

When asked about aims for adopting AI in a multiple-choice question, 60% of respondents claimed they were attempting to cope with a labor shortage, 53% intended to reduce labor expenses, and 36% mentioned more research and development.

A management at a transportation company highlighted “anxiety among employees over possible headcount reduction” as one of the barriers to introduction.

According to the report, other challenges include a lack of technological competence, significant capital cost, and reliability concerns.

According to the research, 15% of respondents had experienced cyberattacks in the last year, and 9% have business partners who have been cyberattacked within the same time period.

When asked about damage, 23% of individuals who experienced cyberattacks or had business partners who were targets claimed their operations were temporarily suspended, while 4% reported an information breach.

On initiatives to improve cybersecurity, 47% of respondents stated they were outsourcing defense, while 38% claimed they had in-house professionals.

In recent months, high-profile publisher Kadokawa was one of the victims of a cyberattack, prompting the government to concentrate on improving cybersecurity.

The survey also revealed that half of businesses support modifying a law requiring couples to use the same surname. Women take their husbands in more than 9 out of 10 weddings, which opponents argue deprives women of part of their identity and burdens them with the paperwork required to make the shift.

The topic received additional attention last month when the Keidanren business lobby requested the government to allow married people to keep their surnames.

In the study, 50% of respondents favored such a legislative change, while 11% were opposed.
“The current system is undermining the dignity and freedom of individuals, particularly women,” a manager at an equipment manufacturer wrote. A steelmaker official referred to change as the “natural demand of the times”.

In objection, a manager at a nonferrous metal plant stated that permitting different surnames could “weaken family bonds.”

When asked how a change in the legislation would influence their organization, 14% claimed employee morale would improve, 10% said it would increase hiring activity, and 56% said they expected no change.

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