Despite 61 percent of Japanese people being aware of generative AI, only 9 percent have used it, a recent survey by the Nomura Research Institute revealed. Younger generations show higher adoption rates, but overall public hesitation remains, particularly among older age groups.

As Japan faces a declining workforce, the government and businesses see AI as a potential solution to boost productivity. However, concerns over privacy, security, and misinformation have slowed adoption. Financial market disruptions and regulatory actions against AI models, such as China's DeepSeek, have further intensified scepticism.

While some companies, particularly in labour-strapped industries, are beginning to implement AI, a shortage of specialists and a lack of reliable information present significant challenges. Despite these hurdles, Japan is pushing forward with AI development, with initiatives like SoftBank's partnership with OpenAI and government plans to regulate and promote AI use in a 'safe and secure' manner.