Japanese companies are at a stage where they are linking AI not only to greater operational efficiency but also to business creation and management reform. While a PwC Japan survey found that many are using generative AI, challenges remain in achieving tangible benefits.
Japanese companies are at a stage where they must connect the rapid evolution of artificial intelligence not only to greater operational efficiency but also to business creation and management reform. Although the adoption of generative AI is spreading, companies have yet to go far enough in achieving tangible benefits, transforming their organizations and redeploying talent, all of which have been identified as challenges to competitiveness.
A survey by the PwC Japan Group found that 87% of Japanese companies said they were using or promoting generative AI. However, only a limited number of companies have experienced tangible benefits, and they are said to need a fundamental review of their work design and decision-making processes. Competition is likely to shift from infrastructure to products and services.
In manufacturing, FANUC is working with NVIDIA and others to create demand for automation through “physical AI,” which enables machines to operate autonomously. In the labor market, developing talent to meet demand for AI and nurturing startups are emerging as key priorities, while the government’s support measures and stronger use of data will be put to the test.
At the same time, the spread of AI could also lead to the creation of new markets. According to data from a US study, monthly ChatGPT users have reached 1 billion. Against this backdrop, Japanese companies face the task of strengthening their digital transformation infrastructure and organizational capabilities.