Japan Artificial Intelligence in Business Market was valued at USD 3.67 Billion in 2022 and is projected to reach USD 15.34 Billion by 2030, growing at a CAGR of 19.9% from 2024 to 2030.
Japan's Artificial Intelligence in Business Market: Industry Requirements and Trends
Japan's integration of Artificial Intelligence (AI) into its business sector is accelerating, reflecting a blend of innovation and tradition. Recent developments underscore this momentum:
SoftBank and OpenAI Collaboration: SoftBank plans to convert a former Sharp LCD plant in Osaka into a data center for AI operations, in partnership with OpenAI. This facility, set to be one of Japan's largest with a power capacity of 150 megawatts, aims to commercialize OpenAI's AI agent model by training it on data from client companies, offering customized AI solutions. The total investment could reach up to 1 trillion yen ($6.77 billion).
Hitachi's AI Transformation: Hitachi has emerged as a leading provider of industrial software and hardware, benefiting from the rising demand for AI and clean energy. Its Lumada division exemplifies this shift, focusing on data monetization and industrial AI, positioning Hitachi as a significant player in Japan's tech transformation.
Government Initiatives: The Japanese government unveiled a $65 billion plan to support domestic industries in semiconductors and AI through subsidies and financial incentives. This initiative aims to bolster next-generation chip production and secure semiconductor supply chains, with projections of a 160 trillion yen economic impact over the next decade.
Despite these advancements, AI adoption among Japanese companies varies:
Current Adoption Rates: Approximately 24% of Japanese companies have integrated AI into their operations, while over 40% have no plans to do so. This indicates that AI adoption is still in its early stages, with significant growth potential.
Industry Leaders: The IT and software development sectors lead in AI adoption, with 55.3% of companies integrating AI. In contrast, traditional manufacturing and construction industries exhibit lower adoption rates, highlighting the need for tailored AI solutions in these sectors.
Primary Objectives: Companies adopting AI primarily aim to improve efficiency (90.9%), address labor shortages (44.3%), and enhance business capabilities (32.5%). This reflects a focus on leveraging AI for operational improvements and strategic growth.
However, challenges persist:
Barriers to Adoption: Key obstacles include unclear AI use cases, high implementation costs, lack of AI specialists, and privacy and legal concerns. These challenges highlight the need for better AI education, cost-effective solutions, and clear regulatory frameworks.
Talent Shortage: The lack of AI-trained professionals is a significant bottleneck, with many firms relying on non-experts for AI implementation. Addressing this talent gap is crucial for broader AI adoption.
In my experience working with Japanese SMEs, I've observed a cautious approach to AI adoption. While there's enthusiasm about AI's potential, concerns about costs, expertise, and clear use cases often hinder implementation. Collaborating with AI service providers and investing in employee training have been effective strategies to overcome these challenges.
Looking ahead, Japan's AI market is poised for growth, driven by government support, industry collaborations, and a growing recognition of AI's strategic value. As more success stories emerge and challenges are addressed, AI is set to become an integral part of Japan's business landscape.
Get an In-Depth Research Analysis of the Japan Artificial Intelligence in Business Market Size And Forecast [2025-2032]
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Microsoft
IBM
Amazon Web Services
Nuance
Verint
DataRobot
SAS
MathWorks
Digital Reasoning
Cloudera
IPsoft
Uniphore
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By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Japan Artificial Intelligence in Business Market
Machine Learning
Natural Language Processing
Computer Vision
Robotic Process Automation
Speech Recognition
Marketing
Sales
Human Resources
Operations
Finance
Retail
Healthcare
Manufacturing
Automotive
Banking, Financial Services, and Insurance (BFSI)
On-Premises
Cloud-Based
Large Enterprises
Small and Medium-Sized Enterprises (SMEs)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
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1. Introduction of the Japan Artificial Intelligence in Business Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Japan Artificial Intelligence in Business Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Japan Artificial Intelligence in Business Market, By Type
6. Japan Artificial Intelligence in Business Market, By Application
7. Japan Artificial Intelligence in Business Market, By Geography
Asia-Pacific
China
Japan
Korea
India
Australia
Indonesia
Thailand
Philippines
Malaysia and Vietnam
8. Japan Artificial Intelligence in Business Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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