Time to do something about Japan's dearth of AI talent

Time to do something about Japans dearth of AI talent
AI is seen as essential to future business models in Japan.

Osaka - One of most ambitious AI-specific training programmes by a Japanese company aims to make 1,000 employees AI-savvy by 2022

By Reuters

Published: Thu 8 Aug 2019, 11:10 PM

Last updated: Fri 9 Aug 2019, 1:12 AM

There's a sense of panic within Japan Inc and the government - the world's No.3 economy doesn't have enough experts in artificial intelligence and it's time to do something about it.
SoftBank Group CEO Masayoshi Son last month bemoaned the state of play, calling Japan a 'developing country' in the most important current tech revolution.
Prime Minister Shinzo Abe in June unveiled a plan to train 250,000 people in AI skills annually by 2025, albeit one criticised as unrealistic due to a shortage of teachers. Tech heavyweights like Sony are hiking pay for the right hires and boosting recruitment of foreign engineers.
But Daikin Industries, the world's biggest maker of air conditioners with a market value of $37 billion, is taking a more unusual route to AI expertise. At a disadvantage to bigger tech firms in attracting top talent, it has created an in-house programme that takes new graduates and current employees - almost all with no AI background - and trains them up.
It aims to make 1,000 employees AI-savvy by 2022, in what Daikin says is one of the most ambitious AI-specific training programmes by a Japanese company.
"We have a sense of crisis as we don't have experts well-versed in information technology when AI and data analysis are in great demand," Yuji Yoneda, executive officer at Daikin's Technology and Innovation Center, told Reuters.
Daikin sees AI as essential to its future business model, in which it plans to offer subscription services with AI-powered air conditioners adjusting the temperature and quality of air autonomously to improve efficiency in factories and households. "Just as carmakers are promoting the concept of mobility as a service, we will promote air-as-a-service by providing various services related to air," he said.
New hires get the most training with a two-year programme. The first crop of 100 graduates hired last year took classes given by Osaka University professors for about six months, with the rest of their first year spent on data analysis and group work. This year, they have been assigned to various departments for on-the-job AI training. By comparison, Sony offers its engineers 290 courses, including AI-courses, that range from a few hours to several days.
Daikin is also keen to hire more engineers from India and China but says its struggles in the United States where it needs to offer hundreds of thousands of dollars to attract the graduates it wants. Additionally, it is looking at raising pay for AI experts to keep them loyal to the company.
Japan's AI woes can be overstated. Of the top 20 companies in AI patents, 12 are Japanese, according to the World Intellectual Property Organization's 2019 report on technology trends. These include Toshiba, NEC, Panasonic, Sony and Toyota Motor.
But compared to the United States, which issued a national AI development plan in 2016, and China which unveiled plans in 2017 to become a global leader in AI by 2025, Japan is lagging. Combined Japanese government and corporate investment in information and communication technology was ¥16.3 trillion ($150 billion) in 2017, up 12 per cent from 1994, Japanese government data showed. By contrast, US investment in the sector more than tripled over the same period to $655 billion.
Japanese universities have also come under fire for not doing enough in AI and data science education. The industry ministry estimates Japan had a shortage of 220,000 IT workers in 2018, which could deepen to 790,000 in 2030 - a prediction that was part of the impetus for Abe's plan to train 250,000 people in AI annually.
In contrast, the World Intellectual Property Organization report noted that Chinese organisations make up 17 of the top 20 academic players in AI patenting.

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