40pc Japanese companies not planning to use AI

Tokyo: Nearly a quarter of Japanese companies have adopted artificial intelligence (AI) in their businesses, while more than 40 percent have no plan to make use of the cutting-edge technology, a Reuters survey showed on Thursday.

The survey, conducted for Reuters by Nikkei Research, pitched a range of questions to 506 companies over July 3-12 with roughly 250 firms responding, on condition of anonymity.

About 24 percent of respondents said they have already introduced AI in their businesses and 35 percent are planning to do so, while the remaining 41 percent have no such plans, illustrating varying degrees of embracing the technological innovation in corporate Japan.

Asked for objectives when adopting AI in a question allowing multiple answers, 60 percent of respondents said they were trying to cope with a shortage of workers, while 53 percent aimed to cut labour costs and 36 percent cited acceleration in research and development.

As for hurdles to introduction, a manager at a transportation company cited ‘anxiety among employees over possible headcount reduction’.

Other obstacles include a lack of technological expertise, substantial capital expenditure and concern about reliability, the survey showed.

The poll also showed 15 percent of respondents have experienced cyberattacks over the past year and 9 percent had business partners that suffered cyberattacks during the same period.

Asked about damage, 23 percent of those that suffered cyberattacks themselves or had business partners that were targets said business was temporarily halted, and 4 percent said they suffered information leak.

On steps to enhance cybersecurity, 47 percent of respondents said they were outsourcing defence whereas 38 percent said they had in-house specialists.

Cyberattack victims in recent months included high-profile publisher Kadokawa whose case prompted the government to work towards strengthening cybersecurity measures.

The survey also showed half of firms support changing a law stipulating that spouses must use the same surname. Women take their husband's in more than nine out of 10 marriages, a practice opponents said takes away part of a woman's identity and burdens them with the masses of paperwork needed to make the change.

The issue came under renewed spotlight after the Keidanren business lobby last month asked the government to allow married individuals to keep their surnames.

In the survey, 50 percent of respondents said they supported such legislative change compared with 11 percent that opposed.

“The current system is hurting individuals' - and especially women's - dignity and freedom,” a manager at a machinery firm wrote. An official at a steelmaker called change the ‘natural demand of the times’.

In opposition, a manager at a non-ferrous metal manufacturer said allowing separate surnames could ‘weaken family bonds’.

Asked how a change in the law would affect their business, 14 percent of respondents said employee morale would be boosted and 10 percent said it would help hiring activity, while 56 percent said they expected no impact.

SOURCE: REUTERS