TOKYO - Less than 20 percent of Japanese companies are using generative artificial intelligence in their operations, due largely to worries about inadequate internal expertise, a recent survey by a research organisation showed.

Kyodo News quoted Teikoku Databank Ltd as saying that concerns about the reliability of generative AI, which has started to gain attention as a tool for improving business efficiency, is also a factor in many Japanese companies' reluctance to embrace it.

Among the 4,705 primarily small and medium-sized enterprises surveyed, only 17.3 percent said they are using generative AI. While 26.8 percent said they are considering adopting the technology, 48.4 percent have no plans to do so.

In the online survey, 54.1 percent of respondents highlighted a shortage of skilled staff and operational know-how as their top issue. In addition, 41.1 percent expressed doubts about the accuracy of AI-generated content and 39.1 percent said they were unclear about which tasks would benefit from AI integration.

Companies also raised concerns about the need for internal rules to handle responsibility if AI causes problems, legal matters such as copyright and privacy protection, as well as the risk of information leaks.

Among the enterprises currently using generative AI, only 19.5 percent have set clear guidelines for its use, indicating that many are not yet fully prepared.

The survey found that information gathering is the most common use of generative AI, with 59.9 percent of companies employing it for that purpose. Companies also frequently use AI for tasks like text summarisation and brainstorming during project planning.

With 86.7 percent of businesses that have adopted AI reporting positive outcomes, Yohei Sadaka, an official of Teikoku Databank, said he expects more enterprises to embrace the technology as it continues to evolve rapidly.

"For companies to effectively utilise AI, they need to understand the associated risks and establish clear internal guidelines," he said. The survey was conducted from 14th June through 5th July.