Artificial Intelligenceand the Labour Marketin Japan This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed andarguments employed herein do not necessarily reflect the official views of the Member countries of the OECD. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Photo credits:Cover © Gorodenkoff/Shutterstock.com. Attribution 4.0 International (CC BY 4.0) This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of the original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword As the general-purpose technology ofourtime, Artificial Intelligence (AI) is expected to profoundly changeall aspects ofourlife, including work. The technology is rapidly evolving and is increasingly making its wayinto the workplace, bringing promises of increased productivity and improvements in job quality, amongstothers. The question is not so much whether AI should be used at work, but rather how, so that its benefitscan be maximised, while managing some of the risks such as: automation, invasions of privacy, bias anddiscrimination, and increased work pressure and stress, to name just a few. The evidence suggests thatpolicies and institutions matter to making a success of AI, including: training and social dialogue, but alsoclear and proportionate regulation. In this series of country reviews, the OECD analyses the impact AI is having on a country’s labour marketfrom an internationally comparative perspective and also takes stock of that country’s policies andinstitutions, against the backdrop of the OECD AI Principles for trustworthy AI. These country reviews aimto helppolicymakers better understand the risks andopportunitiesand offer them a menu of options tohelp workers and employers make a success of AI, drawing on examples and best practice from acrossthe OECD. In addition, by providing an in-depth analysis of a particular country, these reviews allowpolicymakers from across the OECD to draw lessons from the experience of a specific country to informtheir own policies and institutions. Acknowledgements Thiswas prepared by Takahiro Toda from Skills and Future Readiness Divisionof the Directorate forEmployment, Labour and Social Affairs under the supervision of Stijn Broecke (Senior Economist,Skillsand Future Readiness Division)and Glenda Quintini (Head of the Skills and Future Readiness Division).Valuable comments were provided byrelevant ministries and organisations in Japan, including the CabinetOffice,the Cabinet Secretariat,the Personal Information Protection Commission (PPC),the Ministry ofEconomy, Trade and Industry (METI),the Ministry of InternalAffairs and Communications (MIC),theMinistry of Education, Culture, Sports, Science and Technology (MEXT), the Bank of Japan (BOJ),theMinistry of Health, Labour and Welfare (MHLW), and the Japan Institute for Labour Policy and Training(JILPT). The OECD Secretariat would like to thank the MHLW, JILPT), and the Panel Data ResearchCenter at Keio University for their support in carrying out this project.Particular appreciation is extendedtoMitsuji Amase, Yuko Watanabe, and Noboru Ogino, members of the JILPT AI Study Group, forconducting a large-scale survey on the impact of AI adoption in Japanese workplaces and for providingthe author with valuable data andmanyinsights.Additional thanks are due to Professor IsamuYamamotoand Professor Akihito Shimazu of Keio University for providing valuable insights and suggestions. Thisreport is published under the responsibility of the Secretary Genera