OECD urges Japan to embrace AI against labor shortage

The Organisation for Economic Co-operation and Development (OECD) encouraged Japan to adopt artificial intelligence (AI) as a means to enhance productivity and confront its pressing labor shortages. František Ružička, the OECD's deputy secretary-general, stated at a press conference that for Japan, AI represents an opportunity and a tool to manage demographic pressures, boost productivity, and transform employment, rather than a harbinger of widespread job losses.

Ružička highlighted that young people utilizing AI tools can achieve higher productivity. He specifically urged small and medium-sized enterprises (SMEs) to increase their adoption of AI, suggesting this could invigorate Japan's labor market. During a session where an OECD panel presented its latest annual report on labor market conditions in member countries, Stéphane Carcillo, the organization's head of Employment and Income, pointed out that skill and worker shortages are particularly acute challenges for Japanese SMEs.

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For Japan, the OECD sees AI more as an opportunity and a tool to address demographic pressures, to boost productivity, and to transform jobs rather than a threat of mass unemployment.

"Instead of replacing workers, AI will likely play a significant role in addressing the shortages" faced by these companies at present, Carcillo explained. The OECD report acknowledged the robustness of Japan's labor market and the increasing participation of women. However, it also cautioned that wages have yet to fully recover from the economic shock caused by the coronavirus pandemic.

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Instead of replacing workers, AI will likely play a significant role in addressing the shortages faced by these companies at present.