The problem of “older men who do not work” is said to be worsening at Japanese companies as AI adoption advances. Toyota Motor Corporation and Mitsubishi UFJ Financial Group are cited as examples of major Japanese companies.
The rate of routine AI use at Japanese companies is said to be 51%, below the global average of 72%. India leads at 92%, and Japan is considered to be falling behind. Japanese companies are accelerating their adoption of AI to close this gap, but it remains uncertain to what extent this will actually lead to greater efficiency and productivity.
AI adoption is classified into 2 levels. Level A is the stage at which existing operations are replaced with AI, while Level B is the stage at which the nature of the work and the processes themselves are reviewed before introducing AI. Advancing to Level B is said to require in-house initiatives or the use of consultants. Demand for AI consulting is reportedly increasing in the market.
The ROA advocated by CEO Masayoshi Son is said to mean Return On AI, rather than the conventional Return On Assets. It is described as a metric used to measure how much a company’s investment in AI has contributed to higher productivity, lower costs and increased revenue. The article points out that evaluations based on such metrics will influence the direction of AI investment by Japanese companies.
The article states that improving productivity at Japanese companies cannot be achieved through AI adoption alone, and that employment practices and structural defects in organizations continue to cast a shadow. Toyota Motor Corporation and Mitsubishi UFJ Financial Group are cited by name, with the need to balance AI use and operational reform identified as a challenge.