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Japanese Government Highlights Benefits of Investing into AI in a New Study

Updated: Feb 24, 2023

Japanese businesses that invest in artificial intelligence, labour-saving technology and staff development will greatly outstrip the competition in productivity, a new government report shows. The white paper, submitted by the Economic and Fiscal Policy Minister Toshimitsu Motegi, estimates a 16% advantage in total factor productivity for enterprises that have adopted or are thinking about adopting AI or the "internet of things." Companies that also train workers to handle tasks that cannot easily be automated will enjoy at least a 20% productivity boost over old-fashioned rivals. Prioritizing these measures could help end the labour shortage, the white paper argues. AI is seen reducing workloads in general office work, reception and secretarial duties, according to a corporate survey by the Cabinet Office. Business administration, human resources and bookkeeping work would also be reduced. Job categories replaceable with AI include tax and document preparation and personnel management. Demand for such routine work will decline over time, making it necessary to reorient labour toward nonroutine tasks. The paper urges companies to value and support workers who acquire information technology skills. It also emphasizes that universities should offer curricula focused on retraining.

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