Japan's manufacturing and tech sectors navigate AI and DX integration

Japanese companies are increasingly integrating Artificial Intelligence (AI) and Digital Transformation (DX) to modernize operations, though significant hurdles remain. At the Factory Innovation Week 2026, representatives from Yanmar Construction Machinery and Mitsubishi Materials shared strategies for organizational change. Yanmar is focusing on “grassroots DX,” utilizing BI tools to reduce paperwork and capturing expert tacit knowledge through “craftsman-in-the-loop” initiatives. Mitsubishi Materials is implementing its “MMDX” strategy, leveraging massive IoT data and AI for resource circulation and predictive analysis.

In the broader corporate landscape, a survey by OneMind reveals that while approximately 70% of companies have implemented AI in some capacity within internal systems, over half of those pursuing in-house development face a lack of technical expertise. Common barriers to full-scale adoption include insufficient AI talent, unclear ROI, and concerns regarding the security and quality of AI-generated code.

Other industry movements include Autobacs Seven’s transition from macro-dependent spreadsheets to Google Workspace and Gemini to support long-term growth targets, and the Information Processing Society of Japan (IPSJ) hosting seminars on drone utilization in construction, agriculture, and medical logistics through integrated information systems.