Japan is turning to artificial intelligence (AI) to help address a pressing labour shortage caused by its shrinking population. Known for its high standards, Japan often needs help selling imperfect produce, and speciality food makers like Osaka Ohsho, known for their Japanese dumplings, cannot afford to sell products that do not meet quality standards. The surge in demand during the pandemic only exacerbated the labour shortage, leading companies like Eat&Holdings to seek technological solutions.
In January 2023, Eat&Holdings opened a state-of-the-art factory equipped with AI-powered cameras capable of detecting faulty dumplings at double the production rate of other facilities. This implementation of AI in manufacturing has cut the need for human labour by nearly 30%, according to company spokeswoman Keiko Handa.
Furthermore, the company introduced an AI-powered cooking robot at one of its Tokyo restaurants to help alleviate labour shortages in the culinary sector, where training chefs can be time-consuming.
The labour crisis in Japan is intensifying, with a continuously declining population that has fallen for 13 consecutive years. The country’s workforce is projected to shrink by 12% by 2040, potentially leaving Japan short of 11 million workers. This demographic challenge is compounded by an ageing population, with 29% of its people over 65, and a declining birthrate, which saw only 758,631 babies born last year—the lowest number since records began in the 19th century.
Efforts by Prime Minister Fumio Kishida to increase birth rates have seen little success, with Kishida stating that Japan is “on the brink of not being able to function.” This sense of urgency has made the integration of AI into the workforce a welcome development for many sectors.
In agriculture, one of Japan’s fastest-ageing industries, AI is used to identify diseases, pests, and weeds for early intervention. Nihon Nohyaku has developed a smartphone app that helps farmers diagnose crop issues and recommend treatments, improving decision-making without expert human advisors.
The shortage is also felt in education, particularly in language teaching. Japan ranks low globally in English proficiency due to a need for more qualified teachers. In response, startups like Ecumenopolis are developing AI tools that allow users to practice English with avatars, providing a scalable solution to enhance language skills nationwide.
Local governments are adopting AI to streamline administrative tasks. For example, Yokosuka City uses ChatGPT to assist with transcription and document summarization, saving thousands of work hours annually.
While AI is proving to be a crucial tool in mitigating labour shortages and enhancing productivity, it is clear that it must maintain the nuanced capabilities of human workers. Japan’s cautious but proactive approach to integrating AI reflects a balanced understanding of the technology’s potential and limits.
