Few Japanese firms embrace generative AI amid concerns

A recent survey by Teikoku Databank Ltd reveals that less than 20% of Japanese companies are utilising generative AI in their operations, primarily due to concerns about inadequate internal expertise. Despite the growing recognition of AI as a tool for enhancing business efficiency, many firms still need to be bold in adopting the technology.

Of the 4,705 primarily small and medium-sized enterprises surveyed, only 17.3% reported using generative AI. While 26.8% are considering its adoption, nearly half have yet to make plans to integrate the technology. A lack of skilled staff and operational know-how was cited by 54.1% of respondents as a bigger barrier, alongside concerns about the accuracy of AI-generated content and uncertainty about which tasks would benefit from AI.

Additionally, companies expressed worries about the need for internal rules to address potential issues such as legal responsibilities, copyright concerns, and the risk of information leaks. Among those already using AI, only 19.5% have established clear guidelines for its application, indicating a general lack of preparedness.

The survey found that information gathering is the most common use of generative AI, with nearly 60% of companies employing it. Other frequent uses include text summarisation and brainstorming during project planning.

Despite the challenges, 86.7% of businesses that have adopted AI reported positive outcomes. Yohei Sadaka of Teikoku Databank expects more companies to embrace AI as they become better equipped to manage the associated risks and establish more precise internal guidelines. The survey was conducted between 14 June and 5 July.