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Less Than 20% of Japanese Companies Use Generative AI Amid Expertise and Reliability Concerns

Less Than 20% of Japanese Companies Use Generative AI Amid Expertise and Reliability Concerns
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A recent survey by Teikoku Databank Ltd reveals that less than 20% of Japanese companies are utilizing generative artificial intelligence (AI) in their operations, primarily due to concerns about inadequate internal expertise and the reliability of AI-generated content. The survey, which included 4,705 small and medium-sized enterprises, found that only 17.3% are currently using generative AI, while 26.8% are considering adoption and 48.4% have no plans to do so.

The survey highlights significant barriers to adoption, with 54.1% of respondents citing a shortage of skilled staff and operational know-how as their main challenge. Additionally, 41.1% expressed doubts about the accuracy of AI outputs, and 39.1% were unsure which tasks would benefit from AI integration.

Companies also raised concerns about the need for internal guidelines to manage potential risks, such as AI-caused errors, legal issues like copyright and privacy, and the risk of information leaks. Among those already using generative AI, only 19.5% have established clear guidelines for its use, indicating a lack of preparedness.

Despite these challenges, the survey found that information gathering is the most common application of generative AI, with 59.9% of companies using it for this purpose. Other frequent uses include text summarization and brainstorming during project planning.

Notably, 86.7% of businesses that have adopted AI reported positive outcomes. Yohei Sadaka, an official at Teikoku Databank, expects more companies to embrace generative AI as the technology continues to evolve. However, he emphasizes the importance of understanding associated risks and establishing clear internal guidelines for effective utilization. The survey was conducted from June 14 to July 5.

News Source: Emirates News Agency

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Maryam Pervez

Written by Maryam Pervez

Maryam is the Managing Editor at HiDubai, bringing 8+ years of expertise in marketing, social media, and content development. She holds a Master's degree in Marketing Comms from Middlesex University.
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