The Future of DX and AI: Opportunities and Challenges for Japanese Firms and the World Economy (Tokyo Symposium on July 11, 2024)
On July 11, 2024, the Program on U.S.-Japan Relations co-sponsored its second Tokyo symposium, titled “The Future of DX and AI: Opportunities and Challenges for Japanese Firms and the World Economy," with the Keizai Koho Center, Keidanren, Edwin O. Reischauer Institute of Japanese Studies, and Harvard Club of Japan. We were excited to welcome around 200 participants who joined us at Keidanren Kaikan! The symposium was moderated by Program Director Christina Davis.
The first panel, "The Future of DX and AI: Perspectives from Harvard University," presented interdisciplinary approaches to understanding the impact of digital transformations and AI on business, politics, society, and the arts. Hirotaka Takeuchi (International Christian University and Harvard Business School) illustrated how Moderna was able to develop and commercialize its messenger RNA technology rapidly by March 2020 through its “digitization building blocks” of cloud, Internet of Things (IoT), analytics, and AI. Takeuchi suggested that while Japanese firms may be currently behind in developing such digitization building blocks, they may also have advantages in catching up to adopt AI in the long run. Kosuke Imai (Government and Statistics) presented findings from his research on AI-assisted decision-making related to the pretrial Public Safety Assessment (PSA) and gerrymandering of electoral districts in Ohio. He argued that AI’s impact on improving human decision-making varies widely, and depends on its applications to particular issues and contexts. Alexander Zahlten (East Asian Languages and Civilizations) focused on how advances in AI are transforming the artistic production of audiovisual materials, and argued that national branding and soft power are shifting from content-based to platform-based production. He pointed in particular to the tourism sector, which will increasingly be shaped by real-time data collection and transmission by tourists and AI-enhanced translation on various platforms.
In the second panel, "Cybersecurity and AI: An Agenda for Japanese Corporations," Director Davis engaged in a wide ranging conversation with Yokohama Shinichi (CEO of NTT Security Holdings and Group CISO of NTT Corporation) and Yamamoto Yasumasa (Kyoto University). Yokohama emphasized his three guiding principles: (1) do not aim for zero incidents, as cyber incidents are inevitable; (2) support frontline engineers, publicize their work, and trust them to do their work; and (3) develop capabilities to verify the corporation’s cybersecurity performance. He also noted that much of cybersecurity work occurs not at the technical level, but at the managerial level, in which corporate leaders commit themselves to apply these principles in their entire organization. Yamamoto spoke of the importance of human capital in the successes of Big Tech companies, and how corporate leadership can shape where the best human capital ends up among the Big Tech companies over time. He also noted that big Japanese corporations can change and succeed, in similar ways to US-based Big Tech companies, especially if they team up with startups. During Q&A, there were further discussions on the role of the government and policy in promoting and regulating AI, Japan’s policy of the Data Free Flow with Trust (DFFT), and probable impact of quantum computing.
Prior to the symposium, symposium panelists met with Keidanren Committee Chairs on Innovation and Startups, to exchange views on Japan’s and global business agenda for DX and AI. It was our pleasure and privilege to meet with Japan's leading corporate executives, and we express our gratitude to Keidanren's staff.
The day concluded with a reception for the Harvard community in Japan, and we welcomed roughly 100 guests. We thank Noriyuki Shikata (former Cabinet Secretary for Public Affairs, Government of Japan), Jun Tsusaka (Harvard Club of Japan President), and Glen Fukushima (Vice Chair, Securities Investor Protection Corporation) for making their remarks. We also express our gratitude to the volunteers from the Program on U.S.-Japan Relations (class of 2021-22) and the Harvard Club of Japan, and the Keizai Koho Center staff for their time and support.
