
What happened
A survey by Confluent, covering 14 countries and 4,625 IT decision-makers, found that only 17% of Japanese companies are running generative AI such as AI agents in production. This is the lowest among the 14 countries surveyed, compared with the global average of 32% and India's 37%.
Why it matters
Japanese firms remain stuck at the proof-of-concept stage, failing to generate business value. The top challenge cited is a lack of AI and data skills (80%), followed by unclear data ethics and governance (71%) and real-time data integration (69%).
What to watch
To move forward, Confluent highlights data streaming—the practice of continuously feeding data into AI systems—as a key enabler. 82% of Japanese respondents see it as strategically important, and 80% are already investing in AI infrastructure, suggesting a potential path out of the PoC trap.
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The survey by data infrastructure provider Confluent, released on June 16, 2026, paints a stark picture of Japan's AI adoption. With only 17% of Japanese businesses running generative AI in production—compared with 32% globally and 37% in India—Japan is 20 percentage points behind the global average. The findings suggest that while many Japanese firms have started proof-of-concept projects, they have not yet scaled these into business value, a gap Confluent attributes to several factors. The most pressing issue is a shortage of AI and data skills (80%), compounded by governance concerns (71%) and difficulties with real-time data integration (69%). Confluent's Chief Product Officer, Shaun Clowes, emphasizes that AI systems need the latest, accurate data, including context, and that if data is scattered or relies on batch processing instead of real-time streams, ensuring data freshness becomes difficult. Interestingly, despite these challenges, Japanese respondents show a high appreciation for data streaming—82% view it as strategically important, and 80% are already investing in AI infrastructure including machine learning. This suggests that while Japan is behind in production deployment, there is a foundation to build on, and the path forward may involve strengthening data infrastructure to support real-time AI applications. The survey covered 14 countries including the US, UK, India, and Germany, with respondents from companies with 500 or more employees. The results highlight a critical gap between strategic importance and practical implementation in Japan's AI journey.
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