Survey: Over 80% of Japanese firms barely use AI or not at all

A Reuters survey found that over 80% of Japanese companies use AI only a little or not at all in their operations. About 60% said AI is used in just some departments or limited ways; 18% haven't decided yet, and 6% haven't even considered it. Only 16% see AI as essential.

One wholesale manager said they use it company-wide but only for tasks like document creation. A real estate executive admitted they don't know how to use it. A government report shows Japan lags behind other industrial powers: 86.4% of local firms use generative AI for at least one task, while China, Germany, and the US have 98.1%, 91.6%, and 90.9% respectively.

Looking ahead, 4% of firms expect AI budgets to grow over 50% yearly, 21% expect 10-50% growth, 30% see single-digit growth, 14% see no change, and 31% are undecided—but none plan to cut spending. On investment, 82% prefer domestic over overseas, aligning with government strategy. About 41% plan to increase domestic investment by March 2027, 9% expect a decrease, and 50% will keep it steady.