90% of Japanese Companies Fear Losing Competitiveness Without AI Investment, Nexthink Survey Reveals

Nexthink, a global leader in Digital Employee Experience (DEX) management software, has released its research report, "The Current State of DX and AI in Japan." As the Japanese edition of the global "Science of Productivity Report" (surveying 1,100 IT decision-makers across the US, UK, France, Germany, and Japan), this report comparatively analyzes the decision-making and perspectives of 200 Japanese IT leaders against other countries, offering insights for driving AI transformation and improving digital employee experience.

■ Survey Results Summary

- 90% of Japanese companies recognize that "without investing in AI, we will lose competitiveness" (Global average: 83%). This recognition of AI's importance is the highest among the five surveyed countries.

- Conversely, 70% report challenges in "accurately evaluating the financial value of AI investments" (Global average: 46%), significantly highlighting a gap between utilization and visualization.

- Only 88% state that "the IT department can explain the connection between its work and the business outcomes of other departments," the lowest among surveyed countries (Global average: 95%).

- Delays in HR and IT collaboration are notable. Only 33% are "ready for business integration" (Global average: 44%), and 61% cite "lack of communication as the biggest challenge" (Global average: 52%).

■ Background of the Survey

In 2026, Nexthink released the Japanese edition of its global "Science of Productivity Report." By adding Japan as a new target country, this report conducts specialized analysis and observation of the Japanese market. With the proliferation of AI, the role of the IT department is shifting significantly from a "support function that responds after a problem occurs" to a "strategic function that supports a company's long-term competitiveness." Initiatives surrounding AI and the digital workplace have now emerged at the forefront of management agendas.

Meanwhile, Japan faces the unique challenge of labor shortages due to an aging population, making expectations for AI and digital tools exceptionally high. However, compared to other nations, Japan continues to struggle with how to measure the value of investments and tie them to business outcomes. This survey was conducted to uncover "how Japanese IT leaders perceive the future of AI and the digital workplace" and to present the actionable steps IT departments must take to create genuine value.

■ Detailed Findings

- IT Investment Advances, but Value Remains Unmeasured

The percentage of respondents saying "the IT department can explain the connection between its work and the business outcomes of other departments" was 88%, the lowest compared to the overall survey average (95%). On the other hand, those facing challenges in "accurately evaluating the financial value of AI investments" stood at 70%, far exceeding the overall average (46%). As Japan faces the "2025 Digital Cliff," data fragmentation caused by legacy systems makes tracking AI investments and visualizing outcomes structurally difficult.

- AI Advances, but Organizations Lag Behind

The recognition that "without investing in AI, we will lose competitiveness" is 90% (Global: 83%), the highest among surveyed countries. Similarly, the "recognition of the need for a dedicated AI/automation organization" is also world-leading at 84% (Global: 73%). However, while the ability to "identify factors hindering productivity" (89%) and "identify users needing assistance with digital adoption" (91%) remain at high levels, they are relatively low compared to other surveyed countries. According to the Information-technology Promotion Agency (IPA) "DX Trends 2024," only about 20% of Japanese companies have achieved "significant results," highlighting the gap between awareness and execution.

- Collaboration Challenges Between HR and IT Departments

Only 33% (Global: 44%) report being "ready for HR and IT business integration," and 61% (Global: 52%) say the "lack of communication between HR and IT is the biggest challenge," exceeding the overall average. According to PwC's "HR Digital Transformation Survey 2024," 62% of companies face issues with data integration between HR systems, and 54% lack the personnel to handle HR technology strategy.

■ Commentary from Takeshi Hagino, President of Nexthink Japan

"We are in an era where companies that win are not simply those that implement AI, but those that can reflect AI visualization and utilization in their management. For Japanese companies, AI is no longer an option, but a critical foundation that dictates competitiveness. As this report shows, while awareness of its importance is extremely high, challenges still remain in visualizing its value and tying it to business outcomes."