The chief of Japan’s largest staffing firm suggests that artificial intelligence (AI) could address the nation’s labor deficits, but its effectiveness may be constrained by a lack of public trust.
Hisayuki Idekoba, the deputy executive at Recruit Holdings, emphasized the necessity for Japan to fully embrace AI during a meeting with the Financial Times. He highlighted the positive outcomes achieved by businesses leveraging AI tools to enhance job opportunities.
Despite acknowledging AI’s potential, Idekoba cautioned that its integration in developed economies might be delayed due to widespread skepticism among the populace.
In a Tokyo meeting, Idekoba underscored that the acceptance of AI is not solely contingent on technological advancements but also on societal attitudes towards embracing such innovations.
With Japan grappling with workforce shortages exacerbated by an aging population, Recruit is banking on AI to streamline the job matching process between seekers and employers.
Idekoba pointed out instances where individuals applied for positions mismatched with their skill sets, proposing that AI could refine job descriptions to bridge this gap. He noted the stagnant methods of job searching over the past decades, emphasizing the necessity for technological intervention.
Anticipating a shift towards leveraging AI for enhancing managerial efficiency, Idekoba envisions a future where backend AI tools augment the productivity of people managers.
Recruit’s strategic acquisition of Indeed, a prominent US job platform, in 2012 has paved the way for pioneering AI applications in industries like travel, dining, and personal care services.
Idekoba shared that companies utilizing Recruit’s AI solutions witnessed a notable surge in job applications, with a 55% higher likelihood of candidates applying for AI-recommended positions over traditionally advertised roles.
Introducing Really Plus earlier this year, Recruit launched a venture leveraging AI to optimize job advertisements across various platforms, expediting the job matching process. Notably, 11% of Recruit’s users in Japan applied for positions recommended by AI.
Reflecting on the Indeed acquisition, Idekoba expressed satisfaction with the progress made and hinted at potential future technology acquisitions aimed at enhancing operational efficiency rather than solely boosting revenues.
While projecting a 31% surge in annual net profit to ¥354 billion ($2.4 billion), Recruit foresees a marginal revenue decline of 0.9% to ¥3.4 trillion, underscoring the evolving landscape driven by workforce shortages in Japan.
Against the backdrop of a graying population where individuals aged over 65 constitute 30% of the populace, Japan faces mounting pressure to uphold critical services and infrastructure quality.
Prime Minister Fumio Kishida has raised concerns over Japan’s shrinking labor pool and overall population, warning of societal functionality challenges in the near future.
