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Japan stands at a critical inflection point in its relationship with artificial intelligence. As the nation faces demographic pressures, global competition, and the urgent need for digital transformation, leadership has emerged as the decisive factor in determining whether AI adoption will succeed or fail. For Japanese executives, the challenge extends beyond technology itself—it is about guiding organizations through cultural transformation while preserving the values that have long defined Japanese business excellence. AI adoption in Japan reflects deep cultural characteristics that influence how organizations embrace new technologies. In 2024, 25.8% of Japanese companies reported implementing AI in some capacity, a sharp increase from 9.9% in 2023. Yet this still lags far behind global benchmarks, where 65% of firms regularly use generative AI and 78% apply AI overall. Japan’s comparatively slower pace stems from its cultural emphasis on consensus-building, risk avoidance, and quality assurance. While Western companies often favor rapid experimentation and customer-facing pilots, Japanese firms typically follow a deliberate progression—focusing first on internal efficiency, then governance, and only later on external applications. The practice of nemawashi, or behind-the-scenes consensus building, continues to shape adoption patterns, requiring leaders to secure organizational agreement through proof-of-concept projects and gradual rollouts that prioritize procedural legitimacy and consistent quality [1]. This cultural context places new demands on Japanese leadership styles. Traditional models, defined by hierarchical decision-making and long-term stability, are now evolving to accommodate the flexibility and visionary thinking required for AI-driven transformation. Modern leaders must balance adaptability and empathy with data-driven decision-making, moving away from command-and-control approaches toward empowering teams and fostering shared visions. Companies such as Google Japan and NTT Data Malaysia demonstrate how Japanese leaders can navigate international markets by blending global mindsets with traditional values like kaizen-driven quality and consensus leadership. The most effective leaders now combine meticulous attention to detail and ethical standards with new capabilities in change management and technological adoption, ensuring that employees rally around AI initiatives while maintaining long-term organizational sustainability. [2] A central challenge lies in building AI literacy across organizations. Surveys suggest that around 23.6% of Japanese workers—roughly 8.56 million people—express interest in becoming AI human resources, offering significant potential to close the projected shortage of 790,000 IT professionals by 2030. Yet developing AI literacy requires more than technical training. Leaders must create environments where employees see technology as complementary to human skills rather than a threat to job stability. Successful programs emphasize practical, accessible applications, such as AI transcription for interviews, generative AI tools for bilingual client proposals, or AI-powered platforms that streamline report creation. By embedding AI into daily workflows without disrupting established practices, companies can reduce anxieties and build confidence in its value. [3] AI is also reshaping workforce planning models. The traditional practice of scaling human resources in line with business growth—by hiring more sales staff, expanding support functions, and increasing marketing investment—must now account for automation potential before recruitment decisions are made. This is particularly evident in HR, where AI supports recruitment, resume screening, and automated employee queries in both Japanese and English. Companies like Makana Partners have redesigned recruitment processes around AI integration, increasing responsiveness and efficiency. These adjustments also respond to broader demographic challenges: with Japan’s working-age population projected to shrink by 24 million by 2050, AI is becoming essential for sustaining productivity. By capturing and transferring the knowledge of experienced workers to younger generations, organizations are addressing the urgent need for skills transfer in an aging workforce [4]. The philosophy of kaizen, or continuous improvement, provides a natural bridge for AI adoption. This emphasis on incremental progress aligns well with implementation strategies that focus on gradual optimization rather than disruptive change. Japanese companies are already applying AI in ways that reinforce this tradition. Manufacturing firms, for example, are using AI-guided systems and virtual reality training to help younger workers learn from senior colleagues, while Hitachi has developed an AI tool that assists workers in diagnosing equipment issues and recommending remediation steps, improving the abilities of unskilled employees by 30%. By framing AI as an extension of kaizen, leaders can reduce resistance and position new tools as enhancements to established practices rather than threats. To succeed in this environment, Japanese executives require a distinctive mix of competencies. While they need not become engineers, they must understand AI’s capabilities and limits, identify areas for measurable impact, and personally test systems to evaluate workflow implications. Equally important are strong foundations in business acumen, change management, and cultural bridge-building. Leaders must anticipate employee concerns, communicate empathetically, and facilitate collaboration between more cautious older workers and younger generations eager to experiment with new tools. By fostering dialogue and reducing fear of experimentation, executives can support gradual but lasting cultural change. Overcoming resistance remains one of the most pressing challenges. Japan’s ingrained aversion to risk and failure can inhibit progress, yet its traditions of precision and ethical rigor also offer advantages in areas where reliability and trust are paramount. Effective change strategies emphasize controlled experimentation, reframing setbacks as opportunities for learning rather than as failures. Media narratives play an important role in this cultural shift, showcasing examples of calculated risks that yield long-term success and encouraging organizations to see experimentation as a driver of innovation. Practical strategies for AI adoption reinforce these cultural considerations. Leaders are advised to begin with internal efficiency initiatives before expanding outward, to frame AI as a way of strengthening existing capabilities in manufacturing and customer service, and to invest in training programs that extend beyond technical skills to include ethical awareness and change management. Initiatives like Google’s Japan Reskilling Consortium, which unites business, government, and nonprofit partners, provide models for comprehensive education. Creating safe spaces for experimentation and emphasizing AI’s immediate, measurable benefits further support adoption while aligning with Japan’s preference for thorough validation. Looking ahead, Japan’s path toward becoming the world’s most AI-friendly country offers lessons for organizations worldwide. By emphasizing ethics, reliability, and long-term sustainability, Japan is uniquely positioned to lead in sectors such as healthcare, autonomous systems, and manufacturing. The key lies in leaders’ ability to guide their organizations through cultural transformation while preserving values that define Japanese business excellence. If positioned as a complement to human skills rather than a replacement, AI can provide sustainable competitive advantages that benefit both companies and society. Ultimately, Japan’s AI journey is less about technology itself than about leadership evolution, organizational resilience, and cultural adaptation. By embracing AI as a tool for continuous improvement and human enhancement, Japanese leaders are crafting a model of responsible innovation—one that integrates technology with cultural identity to create a future where AI strengthens rather than diminishes human potential. Citations  [1] greeden (2025). [Latest Analysis] Why Is There a Gap Between Japan and Overseas in Generative AI Adoption? — Cultural Background, Pros/Cons, and Outlook for the Next 5 and 10 Years - IT & Life Hacks Blog｜Ideas for learning and practicing. [online] IT & Life Hacks Blog｜Ideas for learning and practicing - Quick life hacks for every day Support by AI. [Accessed 27 Aug. 2025]. [2] Nakayama, C. (2024). Reconciling tradition and innovation: Japan’s path to global AI leadership. [online] World Economic Forum [Accessed 26 Aug. 2025]. [3] AI inside Inc. (2022). Approximately 20% of the Japanese Workforce Are ‘Potential AI Human Resources’The Key to Solving the AI/IT Labor Shortage in Japan by Reskilling Job Transition. [online] [Accessed 26 Aug. 2025]. ‌[4] Schneider, T., Hong, G.H. and Le, A.V. (2018). Managing Japan’s Shrinking Labor Force With AI and Robots - IMF F&D Magazine - June 2018 | Volume 55 | Number 2. [online] IMF. ‌[Accessed 25 Aug. 2025]. [5] Endo, M. (2025). Japanese companies use AI to pass on veteran workers’ skills. [online] Asianews.network. Available at: https://asianews.network/japanese-companies-use-ai-to-pass-on-veteran-workers-skills/ [Accessed 27 Aug. 2025].

Japan's talent acquisition landscape has undergone a fundamental transformation, driven by unprecedented demographic pressures and evolving workforce expectations. With the unemployment rate holding steady at 2.5% in May 2025, and the job-to-applicant ratio reaching 1.22 in June 2025, the competition for skilled professionals has intensified dramatically. These figures underscore the challenges companies face in attracting and retaining talent in a tightening labor market [1]. Japan is experiencing one of the most acute labor shortages among developed nations. The working-age population continues to shrink, with the number of individuals aged 65 and older reaching a record 36.25 million in 2024, accounting for 29.3% of the total population . This demographic shift has created severe workforce constraints, particularly in sectors like construction and nursing, where job-to-applicant ratios are as high as 4.6 and 3.7, respectively [2][3]. The severity of this challenge is further evidenced by a record 260 corporate bankruptcies in 2023 attributed solely to an inability to secure sufficient workers [4][5]. One significant transformation in Japan's recruitment landscape is the shift toward skills-based hiring. Companies are increasingly recognizing that rigid credential requirements limit the available talent pool. This skills-first approach prioritizes competencies over degrees and job histories, opening opportunities for previously overlooked talent segments, including career changers from non-traditional backgrounds [6]. The concept of workplace flexibility has evolved from a desirable perk to a fundamental expectation, especially among Japan's younger workforce. Recent surveys indicate that 75% of workers now prefer flexible arrangements, marking a lasting shift in employment expectations . This transformation has been accelerated by the COVID-19 pandemic, which forced many Japanese companies to adopt remote work practices previously considered incompatible with traditional business culture [7][8]. Japan's Generation Z and millennial workers bring distinctly different expectations compared to previous generations. Unlike older cohorts who prioritized job security and company loyalty, younger professionals place greater emphasis on purpose-driven work, personal growth, and work-life balance. Research indicates that 38% of Gen Z workers prioritize work-life balance over pay and benefits when selecting employers [9] [10]. In Japan's relationship-driven business culture, employer branding carries exceptional significance. Research indicates that 92% of job seekers in Japan consider an employer's reputation before applying for positions, while 80% will actively avoid companies with poor reputations or uninspiring online presence . The concept of employer branding in Japan extends beyond traditional marketing to encompass fundamental cultural values of trust, harmony, and long-term commitment. Japanese professionals value stability and are particularly cautious about joining organizations that may undergo management integration or restructuring. This creates both challenges and opportunities for companies seeking to build strong employer brands [11] [12]. The integration of artificial intelligence and digital technologies into recruitment processes has gained significant momentum in Japan. These innovations automate candidate screening, enhance data analysis accuracy, and improve overall efficiency in talent acquisition. However, the adoption remains uneven across industries, with traditional manufacturing and retail sectors showing slower uptake compared to technology companies [13]. Japan's response to labor shortages has involved expanding workforce participation among previously underutilized demographics. Female labor force participation reached a historic high of 53.6% in 2023, while employment among seniors aged 65 and older continues to grow, reaching 9.14 million workers . This demographic diversification requires companies to adapt their workplace cultures and policies to accommodate diverse needs and expectations. Organizations that successfully integrate these expanded talent pools often gain competitive advantages through increased innovation, broader market understanding, and enhanced problem-solving capabilities [14][15]. Modern Japanese professionals, particularly younger generations, seek employers who offer clear pathways for skill development and career progression. Companies that invest in continuous learning programs, mentorship opportunities, and cross-functional exposure demonstrate commitment to employee growth that resonates strongly with talent-conscious candidates [16]. While salary remains important, Japanese workers increasingly value comprehensive benefits packages that address work-life balance, mental health support, and family responsibilities. Companies like Uniqlo have gained recognition through progressive policies including flexible work hours, extensive paid leave options, and significant salary increases to address inflation concerns [17]. International companies entering the Japanese market must navigate the complex intersection of global best practices and local cultural expectations. Success requires understanding that Japan's revered customs, such as meticulous quality control and consensus-building decision-making, can enhance global enterprises when integrated thoughtfully. Professional recruitment consultancies play a crucial role in navigating Japan's complex talent landscape. With extensive market intelligence and strategic positioning, specialized firms help organizations understand local hiring dynamics while connecting them with qualified bilingual professionals. The consultative approach adopted by experienced recruitment partners provides valuable insights into market compensation benchmarks, cultural expectations, and effective attraction strategies tailored to Japan's unique conditions. Japan's work culture continues evolving, driven by demographic necessities and generational change. Companies that proactively adapt to these shifts while maintaining cultural sensitivity will gain significant competitive advantages in talent acquisition and retention. Organizations must invest in both recruitment technology and comprehensive training programs to remain competitive. The skills-first approach requires sophisticated assessment tools and ongoing development infrastructure to identify and nurture talent effectively. Success in Japan's talent market requires commitment to long-term relationship building with both candidates and employees. Companies that demonstrate genuine investment in employee well-being and career development create sustainable competitive advantages in talent retention. The transformation of Japan's labor market presents both unprecedented challenges and remarkable opportunities. Organizations that understand these dynamics and adapt their strategies accordingly will thrive in one of the world's most sophisticated and demanding business environments. The key lies in balancing respect for Japan's cultural heritage with progressive approaches to talent management, creating workplaces that attract, develop, and retain the best professionals in an increasingly competitive landscape. Citations [1] Trading Economics (2025). Japan unemployment rate. [online] Tradingeconomics.com [Accessed 27 August 2025] [2] nippon.com. (2024). Number of Seniors in Employment Continues to Rise in Japan. [online] [Accessed 27 August 2025] [3] Team Alp (2025). Why Is There a Labor Shortage in Japan? [online] Alp Consulting. [Accessed 27 August 2025] [4] Lu, Y.S. (2025). Unleashing the 2025 Japan Job Market: A Perspective. [online] Makanapartners.com. [Accessed 26 Aug. 2025]. [5] Bloomberg, E.Y. / (2024). Japan’s Population Falls at Record Rate. [online] TIME. [Accessed 25 Aug. 2025]. [6] OECD. (2025). Empowering the Workforce in the Context of a Skills-First Approach: Practical considerations for a skills-first approach. [online] [Accessed 25 Aug. 2025]. [7] 世界経済フォーラム. (2023). Putting Skills First: A Framework for Action. [online] [Accessed 27 Aug. 2025]. ‌[8] Lu, Y.S. (2025). Unleashing the 2025 Japan Job Market: A Perspective. [online] Makanapartners.com. [Accessed 27 Aug. 2025]. ‌[9] admin (2024). Gen Z Decoded: How to Harness Their Potential for Future Success - TG Japan. [online] TG Japan. [Accessed 27 Aug. 2025]. [10] admin (2022). Understanding Gen Z to Drive Success in the Future Workforce - TG Japan. [online] TG Japan. [Accessed 27 Aug. 2025]. ‌[11] HirePlanner - All In One Hiring Platform - ATS - Job Board - Job Posting - Agency Management. (2022). Why Invest In Employer Branding To Recruit In Japan? | HirePlanner - All In One Hiring Platform - ATS - Job Board - Job Posting - Agency Management. [online] [Accessed 26 Aug. 2025]. [12] Fasthire.io. (2024). 5 Ways to Enhance Employer Branding in Japan - Blog. [online] [Accessed 25 Aug. 2025]. ‌[13] RYZEConsulting. (2025). Bill’s insight of hiring market in Japan for 2025. RYZEConsulting. [online] [Accessed 27 Aug. 2025]. ‌ [14] E-housing.jp. (2025). Inside Japan’s Work Culture Crisis and the Bold Moves to Fix It | E-Housing. [online] [Accessed 27 Aug. 2025]. ‌[15] nippon.com. (2024). Number of Seniors in Employment Continues to Rise in Japan. [online] [Accessed 27 Aug. 2025]. ‌[16] jcoadmin (2024). What do Millennials & Gen Zs value in their jobs? - JustCo Premium Coworking. [online] JustCo Premium Coworking - The Place That Works For You. [Accessed 27 Aug. 2025]. [17] Hyresearch.com. (2024). 2024 Employer Branding Trends and Effective Strategies for Hiring in Japan. [online] [Accessed 26 Aug. 2025].

We were excited to welcome Summer Marsden to Makana Partners as an intern. With a background in marketing and communications, Summer brought curiosity and creativity to her work, diving into the world of executive search with fresh perspective and enthusiasm. During her internship, she supported our consultants in sourcing candidates, managed and updated our Loxo database, and contributed to marketing and website projects that strengthened our online presence. Summer’s adaptability and initiative shone through in every task, and we’re grateful for the energy and insights she brought to our team. We’re grateful for Summer’s time, effort, and creativity, and we look forward to seeing where her talents take her next. What is one thing you learned about the executive search industry during your internship that surprised you? How has it changed how you view the work we do? Having such little knowledge of executive search before arriving, I was surprised by how much of the sourcing involved reaching out to candidates who already had jobs. Knowing more about how limited the active search pool is now, it makes a lot of sense. It gave me a stronger appreciation for the nuance and complexity of the work that Makana Partners does, as sourcing individuals with jobs creates the issue of identifying and potentially poaching strong candidates at companies without creating a bad relationship with the company that they work at. You never know if the company they work for currently could become a new client in the future, so finding professional ways to handle these situations is difficult and impressive. Can you describe a time when you helped with sourcing candidates? What strategies or tools did you find most effective, and why? Most recently, I helped source candidates for an HRBP position for a high-profile client. The tool I found most effective was the Google programmable search engine, as it allowed me to identify LinkedIn profiles in Japan that matched the title we needed to search for. In addition, having strict requirements to follow when searching through profiles is really helpful in weeding out the unqualified candidates, and highlighting the best ones. How did managing and updating our database help you understand how important accurate data is to our operations? Did it give you a new perspective on how we work? Just the sheer number of profiles on Loxo–over 22,000–gave me a good view into how important updating candidate profiles would be before I got into the meat of the work. Realistically, only about 5% of those profiles would become active clients, so being able to update those profiles was extremely important. Tasks as simple as updating nicknames, birthdays, and tags gave an insight into the small details that make a large difference when identifying the ‘right’ candidate for a job. Tedious as it might have been, I really do believe that it made candidate searches much easier. What did you enjoy most about creating or managing content for our social media or website? Can you give an example of a post or project you’re proud of? At first, learning how to use the Shazamme platform to edit the Makana Partners website was really difficult and frustrating. However, once I got used to the platform and found creative ways to make it produce what I wanted, I got a lot of enjoyment out of it. Once I had finished creating and curating all of the new tabs and content to be added to the website, it was really satisfying to see what a big difference the changes had made. I’m hopeful that it brings more engagement to the website, and more recognition to the Makana Partners name in general. You worked on a variety of tasks—like sourcing, data management, social media, and more. How did you stay organized and manage your time effectively? What was the most challenging part, and how did you handle it? To help manage the workload, as well as avoid boredom, I would prioritize more time-sensitive tasks when necessary and find ways to jump around tasks to give myself little brain breaks. Each day, I would use Microsoft Planner to keep track of the daily time-sensitive tasks, such as posting on LinkedIn or completing individual projects from Ken or Yan Sen. When those tasks were done, I’d let myself bounce between background activities such as Loxo profile updates, candidate searches, or social media content creation. This allowed me to space out large projects like the Loxo updates, while also having the freedom to dedicate time to more urgent tasks without feeling overwhelmed. The most difficult part was probably just handling the times when both Ken and Yan Sen would have extra tasks that they needed help with, but I always found ways to prioritize the most important ones and work efficiently to get them done. Even when they were time-sensitive, both Ken and Yan Sen were reasonable with when they wanted results, and often were surprised by how quickly I was able to produce them. Just staying focused and not letting short deadlines overwhelm me was the best way to handle it all. How did working with consultants, mentors, and other team members help you grow professionally? Did they challenge any of your assumptions or teach you something unexpected? I really enjoyed getting to meet and know many of the Makana Partners team members, and reflect on their individualities and different skillsets that provided them with advantages and expertise in different areas of executive search. I was constantly impressed by consistent announcements of high-level placements, and even more impressed by how each announcement came with praise for any consultants who had worked with them or helped them in the process. I can imagine that executive search and recruiting can be a pretty competitive arena, but the Makana Partners consultants were all extremely supportive of each other, which goes to show the positive work culture and environment. You supported research and reporting tasks during your internship. What did you learn about analyzing the market or preparing reports that you didn’t know before? I learned how important it is to use the tools at your disposal (AI, research databases, partner firm articles like Horton) to gain large amounts of information fast. Coming into the internship, I knew little about the Japanese market in general, and even less about executive search, which made my confidence low. However, once I got into specific tasks, I realized how easy it was to increase my knowledge when using the right tools. If you could suggest one improvement—whether to our sourcing process, data management, or social media efforts—what would it be and why? If possible, I would get consultants more involved in the marketing process when possible. Even with a marketing background, having only 1-2 people in charge of content creation and ideation limits the boundaries for where you can go. When Jayson suggested the “day in the life” video, it was great! I’m sure that other consultants would have unique and creative ideas like this, if given the opportunity and encouragement to think and share. Plus, having more autonomy in what kind of content they can create (not just articles) might bring more excitement and eagerness to the task. Looking back, which part of your internship helped you grow the most? What new skills or knowledge are you taking away from this experience? I never saw creativity as one of my strong suits, but having to run all of the content creation for Makana Partners (website design & social media) has definitely given me a lot more confidence in that area. I was also able to learn so much about a completely new industry in a really short amount of time, which goes to support my ability to soak up information and learn new skills really quickly. In addition, watching how consultants work with candidates to showcase their skills and career profile gave me unique lessons on how to bolster my own professional profile and leverage my experience to get job interviews and offers.