Rakuten Group, Inc. has released the results of a new survey on the use of AI among small- and medium-sized enterprises (SMEs) in Japan.
The survey, conducted by Edelman Data & Intelligence on behalf of Rakuten, gathered insights from 300 SME business owners and decision-makers in various industries, such as services, retail, wholesale, and manufacturing.
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State of AI Adoption in Japan
The survey revealed that only 16% of Japanese SMEs are currently using AI, indicating that the technology is still in its early stages with room for growth. A significant number of non-users (40%) struggle to see the benefits of AI, highlighting the need for more awareness, education, and tailored solutions to unlock the transformative power of AI for SMEs.
Japan’s service industry leads adoption at 21%, while AI applications are primarily focused on operational tasks such as copywriting (43%), automating routine processes (30%), translation (23%), and writing code (21%).
A significant knowledge gap exists between AI users and non-users, limiting adoption. Among non-users, 41% struggle to identify practical AI use cases, while 40% are unaware of AI’s potential benefits. Many non-users associate AI mainly with process streamlining (34%), but there is a notable perception gap compared to current users, particularly in copywriting (20% gap) and time/resource savings (15% gap).
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Barriers to Adoption
Key barriers to AI adoption include a lack of technical expertise (34%), concerns about return on investment (ROI) (31%), and high implementation costs (28%). The retail and wholesale sectors show strong potential for AI adoption, with businesses in these industries demonstrating greater openness to AI solutions.
"With rising wages and inflationary costs putting increasing pressure on SMEs in Japan, the need to adopt transformative technologies like AI has never been more critical,” said Taku Okoshi, Director of Rakuten Group’s AI & Data Division. “We see AI as a powerful tool for transforming businesses, enabling SMEs to not only streamline operations but also enhance customer engagement. By demystifying AI and addressing concerns like cost and technical expertise, Rakuten aims to make AI accessible and impactful for every business, regardless of size or industry."
The survey indicated a clear opportunity for AI service providers to educate SMEs in Japan and offer cost-effective solutions with tangible ROI. By expanding AI applications beyond operational tasks to include marketing and customer engagement, SMEs can achieve business-centric outcomes and enhance their competitive edge.
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