According to the Ministry of Health, Labour and Welfare's 2026 White Paper on the Labour Economy, generative AI adoption among Japanese companies is 9.2%, well below the OECD average of 20.2%, highlighting delays in investment and workforce development.
The white paper, drawing on an analysis of first-mover advantages during the IT adoption period in the late 1990s, suggested that lower initial investment in Japan may have contributed to sluggish economic growth. It therefore emphasized the view that proactive investment in AI at an early stage is also important.
Japan's adoption base is particularly weak among SMEs and in certain industries, with 59.0% of SMEs with 300 or fewer employees saying they have no plans to adopt AI. Low adoption levels in medical care, nursing care and welfare services, as well as accommodation, food and beverage services, were also highlighted.
The delay in workforce development is also pronounced. The proportion of companies receiving AI training or financial assistance stands at only 26.9% in financial services and insurance, well below the levels in the US, the UK and Germany. The figure is also low in manufacturing, at just above 50%, compared with other countries. The white paper pointed to both job creation and job losses as potential effects on the labor market and emphasized the importance of government support for reskilling.