Japan’s AI Adoption Faces Digital Skills Shortage and Outdated Technology

Although many Japanese companies are investing in artificial intelligence, critics argue that only a small percentage of employees actively use AI—and those who do often use it in limited ways.

Yasushi Ogasawara, a professor at Meiji University and an expert on Japanese social systems and technology, says Japan lacks enough workers with advanced digital skills.

“Japanese people enjoy using gadgets such as smartphones, but digital literacy remains low in Japan,” Ogasawara says.

Japan’s AI adoption challenge was highlighted in a report published earlier this year. The report warned that the country could face a shortage of approximately 800,000 IT professionals by 2030.

Many Japanese businesses are also relying on outdated computer systems. Approximately 60% of these systems are more than 20 years old, making it difficult for companies to introduce modern AI tools and digital technologies.

Ogasawara believes Japanese companies face greater pressure to protect employment than to rapidly develop AI systems that could potentially replace jobs.

“Governments talk about AI, reskilling and digital skills, but the reality is that maintaining full employment is the priority. As a result, it is difficult to shift the workforce toward digital skills,” he says.

Japanese Companies Begin Prioritizing AI Literacy

Despite these challenges, Japan’s recruitment landscape is beginning to change. Some companies are placing greater importance on AI literacy when hiring new graduates.

In the private sector, major companies such as Kanematsu, a leading general trading company, are recruiting graduates with strong digital skills. Uta Yamaguchi, who joined the company in April, says she uses AI frequently at work.

“I use AI a lot in my work,” she says. “Many of my colleagues use it to write emails to their managers, summarize complex documents, and record and summarize meetings.”

However, Yamaguchi says Japan remains behind the United States when it comes to AI systems capable of handling multiple tasks autonomously. These advanced AI agents are still rarely used in Japanese workplaces.

Her employer, known for its forward-thinking approach, has now begun hiring employees with the skills needed to work with emerging AI technologies.

Japan Faces Pressure to Accelerate AI Transformation

Ogasawara says the pace of change in Japan remains limited.

“Change in Japan is limited. Japanese society expects painless reforms, so it is difficult to carry out truly drastic changes,” he says.

While the word “disruption” may carry negative associations in Japan, experts argue that significant transformation could be necessary. Without major investment in AI, digital infrastructure and workforce training, Japan may struggle to achieve the productivity gains it needs to remain competitive.

Source: www.bbc.co.uk