Overview
Japan’s cautious pace in adopting AI is not a weakness. It’s a strategic advantage. How has this unique market reacted to current AI trends and developments, and how does it differ to other markets?
The “AI Era”
If I were a historian, I would label the mid-to-late 2020s as the “AI Era”. The release of OpenAI’s behemoth, the large language model ChatGPT, to the public in late 2022 marks a shift in the ways we consume, gather, and interact with digital tools.
In our role as market research and entry experts in Japan, our team at CarterIGNITE has a first-hand view of how both corporations and consumers react to our changing world. This article is the first in a two-part series that focuses on AI sentiment and trends in Japan. We will share and explain our research insights that are unique to the Japanese market, while part two will offer guidance on navigating the ongoing changes in our AI-enabled world.
Japan’s AI Adoption & Attitudes
There’s a saying among residents in Japan: we have lived in the year 2000 since 1980. To unpack this – a nation that seemingly was at the forefront of technological innovations from post-war to the 1980s is now playing catch up to leaner, faster-moving markets.
Recent tourists have likely faced headaches of trying to make online reservations, such as for the Osaka Expo, only to encounter a dizzying maze of clunky and outdated user interfaces. But for the domestic user, why fix what isn’t (completely) broken?
This saying often comes as an exaggeration, as efforts to change our pace of growth are certainly underway. However, the underlying culture of capturing consensus approval before proceeding with new tools or ways of thinking is an ingrained part of life in Japan. Compared to markets such as the United States or Korea, Japan tends to be more apprehensive towards change – and this includes the adoption of AI technologies.
Since 2016, we have conducted an annual consumer sentiment survey in Japan among n=1,000 participants aged 16-69. In March 2025, our latest iteration included statements on AI use. We’ve provided a brief snapshot of some of our findings below.
We asked people if they agree with the statement, “The ability of AI & ChatGPT to understand and generate human language and the innovation behind it is appreciated.” The total agreement score (i.e., those who answered “agree” or “strongly agree”) is 33% among all respondents aged 16-69. To break this down further by age range:
16-19: 44% in agreement
20-29: 35% in agreement
30-39: 31% in agreement
40-49: 35% in agreement
50-59: 29% in agreement
60-69: 32% in agreement
In no age range do the majority of our research participants (i.e., 50% or more) think that the innovations of AI and/or ChatGPT are innately positive, although those aged under 20 are the closest (bolded for emphasis).
What’s striking about these results is that despite the global buzz around AI, enthusiasm in Japan remains relatively cautious across all age groups. Even among digital natives aged 16–19, who grew up surrounded by technology, fewer than half express clear appreciation for AI’s capabilities. The low agreement rates don’t reflect a lack of awareness but suggests that curiosity about AI does not automatically translate into trust or admiration. Instead, attitudes may be shaped by cultural factors such as a high bar for technological reliability, a preference for human nuance in communication, or a wait-and-see approach toward emerging innovations.
AI in the Japanese Workplace
Further insights from our 2025 annual consumer sentiment study reveal that younger Japanese are the age group most concerned about AI developments and its implications for human employment. 43% of those aged 16-19 years old agree with the statement, “AI and ChatGPT will take away human jobs and lead to a worsening employment environment”. In comparison, Japanese respondents in their 40s were the most likely to hold an uncertain stance, with 65% stating they neither agreed nor disagreed with the statement.
16-19 year olds also lead in their agreement of, “AI and ChatGPT are tools that could help solve complex problems and improve efficiency”, with 47% agreeing. Only 28% of respondents in their 50s agreed that AI tools provide efficiency, making them the most apprehensive age group. Although our youngest respondents worry about the impacts of AI technologies on their future employment prospects, they also see the value that further efficiencies can bring to the workplace.
Annual OECD productivity findings show that Japan continues to decline in productivity compared to hours worked. We’ve also witnessed how younger workers are bucking other employment trends in Japan (rejecting lengthy overtime and lifetime employment, and embracing hybrid working, to name a few). AI innovations could further enable younger generations to maintain an improved work-life balance compared to their elders.
Japanese Government Strategies for AI
The Government of Japan has made headlines regarding technology in the past, but not for the right reasons. In 2018, our then-deputy chief for cybersecurity strategy admitted he had never used a computer before.
Times have certainly changed. The Government’s Digital Agency was founded in 2021, which is further pursuing the development and growth of technology, including AI, in Japan. For the 2026 fiscal year, the Agency has requested a 29% annual budget increase, totalling 614.3 billion Japanese yen (approximately 4.13 billion USD). One of the primary aims of the Digital Agency is to act on the promotion and use of AI technologies, including reducing misinformation.
Government systems, such as the MyNumber card (an identification card containing an IC chip, which will replace multiple systems over time, including health insurance cards), are also undergoing digital transformations, indicating a growing appetite for the research and development of AI systems and AI integration.
Misinformation and AI
The deluge of (sometimes deliberately) inaccurate information online has increased in recent years due to the influx of generative AI content. In our 2025 consumer sentiment study, we asked participants whether they agreed with the statement, “It is worrying that the accuracy, ease of use, and widespread use of AI/ ChatGPT might bring unintended consequences”. The results are as follows:
16-69 (Total): 37% in agreement
16-19: 48% in agreement
20-29: 27% in agreement
30-39: 30% in agreement
40-49: 38% in agreement
50-59: 34% in agreement
60-69: 49% in agreement
Our oldest and youngest age cohorts (bolded for emphasis) lead in the levels of concern regarding the “unintended consequences” of relying on AI-generated content for accurate and true information. Scam attempts frequently target older adults in Japan. In research conducted by security services provider Secom in late 2024, as many as 1 in 3 older adults were the target of suspicious or scam phone calls. As mentioned earlier, our digital natives (under 20s) cohort remain skeptical of fully relying on technology.
Data Privacy and AI
Japanese consumers are extremely protective of their personal information and data, and are generally risk-averse when it comes to sharing their details online. For example, Japanese users of social media platforms are less likely to use their real names or photos when sharing content compared to Western users. In our studies of corporate LLMs in Japan, interview participants found it difficult to separate their concept of “data privacy” from “online safety,” a distinction that was more pronounced in interviews conducted in the Middle East and the United States.
The regulatory landscape of AI cannot keep pace with innovation, and the risk-averse nature of Japanese consumers makes them hesitant to adopt new tools and market entrants.
Japanese consumers are deliberate and discerning in building trust, but once that trust is broken, it is difficult to regain.
Operating within domestic rules and guidelines, and ensuring your products keep up with any changes to privacy and/or industry standards, are essential for winning over potential users.
The Bigger Picture: Japan’s AI moment will look different
Japan’s relationship with AI isn’t defined by hesitation, but by intention. While other markets chase speed and scale, Japan is quietly shaping a different path: one where trust, safety, and cultural alignment are prerequisites for adoption. This isn’t a weakness. It is a strategic filter.
The real opportunity lies in understanding that Japan won’t simply follow global AI trends, it will reinterpret them. The companies that win here won’t be those who shout the loudest about disruption, but those who prove how AI can deepen human connection, enhance quality of life, and solve problems that matter in uniquely Japanese ways.
If the 2020s are the “AI Era,” Japan’s chapter is only just beginning and it will challenge many of the assumptions driving innovation elsewhere.
Your Partners in Japan Market Entry & Research
Do you have more questions about your market success in Japan? Contact our team at CarterIGNITE for more information or a brief introductory call.
We are a team of experienced market researchers and market entry specialists who assist businesses and governments at every stage of their journey into Japan. CarterIGNITE employs a range of research methods, including qualitative and quantitative approaches, as well as consultancy services, in addition to trade mission and business matchmaking support across various industries. We’d be delighted to support you and “ignite” your entry into Japan and beyond.
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