Completely Different from the US: Why Japanese Companies Are Increasing Hiring as New Roles Emerge with AI

Three out of Ten Japanese Companies to Expand Hiring
Only 17% Reduce or Reassign Workforce
"AI as a Tool for Creating New Value"

Unlike the United States and other countries where the introduction of artificial intelligence (AI) has led to workforce reductions, Japanese companies are actually planning to increase their headcounts. This reflects a strategy to use AI as a tool for creating new business opportunities rather than simply cutting costs.

View of Shibuya, Tokyo, Japan. Pixabay

On March 19, the Nihon Keizai Shimbun reported that this trend was revealed in a survey conducted by Azusa & Co. on the state of digital transformation (DX) initiatives among 246 listed Japanese companies.

According to the survey, 28% of the companies responded that they are “increasing staff because new personnel are needed” following the adoption of AI and other advanced technologies. In contrast, only 17% said they had reduced or reassigned employees.

About half of the companies indicated that they have not yet experienced any notable changes. Specifically, 25% said “it has not reached a stage where it has an impact yet,” while 24% responded that “there is no particular impact.”

This trend contrasts with countries such as the United States, where the introduction of AI is often accompanied by restructuring. Japanese companies are seen as viewing AI not merely as a cost-saving tool, but as a foundation for creating new value.

An official from Azusa & Co. explained, “The more companies expect to increase their workforce, the more actively they are looking to utilize AI in product and service development or customer support.” As the scope of AI utilization expands, new work is being created, and consequently, additional personnel are needed.

However, a shortage of talent to lead digital transformation on the ground remains an unresolved issue. When asked about the challenges of driving digital transformation (multiple responses allowed), 83% of companies cited “securing and developing talent.”

In particular, 80% responded that there is a shortage of “business architects,” who are responsible for designing the integration of digital technologies into business operations. This indicates a significant gap in the personnel who bridge strategy and execution. On the other hand, the shortage of talent specialized in AI technology itself, such as software engineers, has somewhat eased compared to the previous survey in 2023.

This content was produced with the assistance of AI translation services.