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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