Many Japanese executives predict workforce reduction from AI in next decade

More than 40% of top executives at major Japanese companies expect their workforce to shrink over the next decade due to generative AI, according to a Yomiuri Shimbun survey. Over 30% already incorporate the technology into management decisions, though many caution against full reliance for ethical, safety, or complex issues.

The Yomiuri Shimbun conducted a questionnaire from late November to mid-December, surveying 41 leaders from major Japanese companies across various industries on economic prospects. Eighteen executives anticipated a reduction in their workforce due to generative AI, with five projecting a decline of 10% or more. They highlighted roles like data entry, document preparation, and call center operations as likely to be automated.

Fifteen respondents foresaw no employment impact from the technology. The sole executive predicting growth was Makoto Tani, chairman of Skylark Holdings Co., who plans to hire more digitization specialists. He noted that AI-driven productivity gains would enable new store openings and business expansion, necessitating additional restaurant staff.

Fourteen leaders reported using AI in management decisions, primarily for collecting and organizing information. Yoshinori Isozaki, CEO of Kirin Holdings Co., described a pilot project featuring an 'AI executive' that suggests discussion points for management meetings, stressing that 'final decisions are made by humans.'

On tasks unsuitable for AI, Ryuichiro Nishiyama, president of Seibu Holdings Inc., pointed to hospitality, in-person customer service, and entertainment performances. Shigeo Nakamura, president of Ajinomoto Co., cited final inspections for food safety and quality. Tatsuya Shimomura, president of Shimizu Corp., mentioned skilled work on cultural properties requiring deep expertise.

Regarding artificial general intelligence capable of broad tasks, ten executives estimated realization within five years, nine between five and nine years, six in ten years or more, and fifteen were unsure. The survey underscores AI's potential to reshape staffing and decision-making in Japanese firms.

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Executives from Square Enix and University of Tokyo researchers collaborating on AI for game QA, with screens displaying debugging interfaces and timelines.
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Square Enix plans generative AI for 70% of game QA by 2027

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Square Enix has announced a partnership with the University of Tokyo's Matsuo-Iwasawa Laboratory to automate 70% of its quality assurance and debugging tasks using generative AI by the end of 2027. This initiative aims to boost efficiency in game development and gain a competitive edge. The plan emerges from the company's medium-term business strategy amid broader AI adoption in the industry.

A poll by the Korea Chamber of Commerce and Industry (KCCI) shows South Korean workers have cut their hours by an average of 8.4 per week, or 17.8 percent overall, thanks to generative AI platforms. More than half of respondents use such tools daily, with the highest adoption in the information and telecommunications sector.

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A recent poll shows 15% of Kenyans fear retrenchment in 2026 amid economic pressures and AI adoption. Nearly six in ten companies plan layoffs, highlighting automation's impact. This threatens clerical workers and high-paid managers the most.

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Japan's Nikkei share average dropped more than 1% on Tuesday, weighed down by declines in chip and AI-linked stocks ahead of key U.S. employment data. Investors adopted a wait-and-see approach amid upcoming economic releases.

Japanese developer Cygames has issued an apology following backlash to its announcement of an AI-focused subsidiary. The studio assured fans that generative AI is not currently used in its games and promised prior notice for any future implementation. This comes amid growing industry debates over AI's role in game development.

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A new survey of banking professionals reveals expectations of unexpected advances in artificial intelligence and digital assets shaping the industry next year. Conducted by American Banker, the research highlights concerns over preparedness amid economic uncertainty. Respondents anticipate exponential AI impacts and a stronger role for stablecoins.

 

 

 

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