Rakuten Survey Reveals AI Awareness Gap and Growth Potential for Japanese SMEs

- Only 1 in 6 Japanese small and medium-sized enterprises use AI
- 40% of non-users are unaware of AI benefits, highlighting the need for education and tailored solutions

Tokyo, January 29, 2025 - Rakuten Group, Inc. today revealed the findings of a new survey on AI usage and perceptions among small and medium-sized enterprises (SMEs) in Japan. The survey, commissioned by Rakuten and conducted by Edelman Data & Intelligence, gathered insights from 300 SME business owners and decision-makers from the service, retail, wholesale and manufacturing industries, shedding light on the current state of AI adoption in the country.

Among Japanese SMEs surveyed, 16% are currently using AI, indicating that the adoption of the technology is still in its early stages with significant potential for growth. Notably, 40% of non-users struggle to identify AI’s potential benefits, underscoring the need for greater awareness, education and tailored solutions to unlock AI's transformative power for SME businesses.

"With rising wages and inflationary costs putting increasing pressure on SMEs in Japan, the need to adopt transformative technologies like AI has never been more critical,” said Taku Okoshi, Director of Rakuten Group’s AI & Data Division. “We see AI as a powerful tool for transforming businesses, enabling SMEs to not only streamline operations but also enhance customer engagement. By demystifying AI and addressing concerns like cost and technical expertise, Rakuten aims to make AI accessible and impactful for every business, regardless of size or industry."

Key Findings

1. AI adoption remains limited, with higher penetration in the service industry

• Only 16% of decision-makers in Japanese SMEs say their business currently uses AI, with the service industry showing the highest adoption rate at 21%.
• Among current AI users, the most common applications include operational tasks such as copywriting (43%), automating routine processes (30%), translation (23%) and writing code (21%).
• However, AI is underutilized for customer-centric activities like personalized shopping experiences, presenting an opportunity for growth.

Image 1: Does your company currently use AI in its business operations?

Image 2: What does your company currently use AI to help with?

2. Bridging the knowledge gap between AI users and non-users is critical

• Among non-users, 41% were unable to identify specific AI usage occasions, and 40% were unaware of potential benefits, signaling significant potential to improve SMEs’ understanding of AI applications.
• Non-users primarily associate AI with process streamlining (34%), but there is a sizable perception gap compared to current users, particularly in areas such as copywriting (20% gap) and time/resource savings (15% gap).
• Educating SMEs on the broader benefits of AI, including its potential to enhance marketing and customer engagement, is essential to driving adoption.

Image 3: How do you think AI can help your company? (left) / What do you think are the benefits of using AI at your company? (right)

3. Future AI solutions must address cost and ROI concerns, with a focus on retail/wholesale sectors

• Non-users identified lack of technical expertise (34%), ROI concerns (31%) and high implementation costs (28%) as the top challenges to AI adoption.
• The retail and wholesale sectors show strong potential for AI adoption, with businesses in these industries demonstrating greater receptivity to AI solutions.
• To drive adoption, future AI solutions should prioritize affordability, ease of implementation and the ability to deliver personalized customer experiences.

Image 4: What are the challenges for your company in introducing AI?

Opportunities for growth
The survey highlights a clear opportunity for AI service providers to bridge the knowledge gap and address the unique needs of SMEs in Japan. By offering cost-effective, easy-to-implement solutions and demonstrating tangible ROI, AI adoption can be accelerated across industries. Additionally, expanding AI applications beyond operational tasks to include marketing and customer engagement will enable SMEs to achieve business-centric outcomes and strengthen their competitive edge. 

Rakuten is dedicated to empowering SMEs in Japan by delivering innovative AI solutions and cutting-edge technologies to improve operations, strengthen connections with customers and drive sustainable growth.

Survey methodology
The findings are based on a 10-minute self-complete online survey conducted in Japan between November 15 and November 26, 2024. The survey targeted 300 SME owners, decision-makers or key influencers of business decisions aged 18 or older. SMEs were defined based on employee size, with criteria set on industry in accordance with guidelines from SME Support Japan. Survey industries include service, retail, wholesale, manufacturing and more. 

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