Japanese firms split on AI adoption, cybersecurity concerns rise – Nikkei Research

TOKYO, JAPAN — A recent survey conducted by Nikkei Research for Reuters reveals a divided opinion among Japanese companies regarding artificial intelligence (AI) adoption and cybersecurity measures. 

The survey sampled 506 firms between July 3 to 12, 2024 with approximately 250 responding anonymously.

It revealed that 24% of the respondents have already adopted AI, 35% are planning to do so, and 41% have no plans to embrace AI, highlighting a significant divide in the acceptance of technological advancements within corporate Japan.

Motivations and challenges for AI implementation

For those embracing AI, the primary motivations include addressing workforce shortages (60%), reducing labor costs (53%), and accelerating research and development (36%). 

On the other hand, a transportation company manager cited “anxiety among employees over possible headcount reduction” as a concern. Other hurdles include a lack of technological expertise, substantial capital expenditure requirements, and reliability concerns.

Cybersecurity threats and defensive strategies

Fifteen percent of respondents reported experiencing cyberattacks in the past year, while 9% had business partners who suffered such attacks. The impact of these incidents was significant, with 23% of affected companies reporting temporary business halts and 4% suffering information leaks.

In response to these threats, 47% of firms are outsourcing their cybersecurity defense, while 38% rely on in-house specialists. The recent high-profile cyberattack on publisher Kadokawa has prompted the government to strengthen cybersecurity measures.

Global AI adoption trends

A study conducted by SAS Institute and Coleman Parkes Research found that 83% of Chinese business decision-makers reported using GenAI technology. 

Meanwhile, in the U.S., 65% of organizations are utilizing GenAI, placing it behind the United Kingdom (70%) but ahead of Australia (63%).

However, Stephen Saw, Managing Director at Coleman Parkes, cautions that “higher adoption doesn’t necessarily equate to effective implementation or better returns.” 

Specific industries that fully implement GenAI into regular businesses include banking (17%), telco (15%), insurance (11%), life sciences (11%), and professional services (11%).