Inoue: What is the current state of artificial intelligence (AI)?

Chujo: Many companies are struggling with AI adoption. At the same time, many are very interested in generative AI. So, AI is having a broad and substantial impact on management. There are two aspects of AI that need to be faced: learning to use generative AI and creating uniquely human value.

Wada: We’ve been promoting the use of AI technology to increase the precision of human resource placement and deployment. Our whole group is currently engaged in trial-and-error on a daily basis to explore how we can use AI to improve and innovate our services.

Inoue: How will the incorporation of AI into work processes affect the meaning and value of human intervention?

Kaji: An MIT study showed that the use of generative AI cuts work time in half and increases task quality by about 50%. Substantially reducing the time to write a draft leaves more time for editing. Creating new kinds of work to coexist with technology has been a recurring theme of our human history. The way we work is now changing again.

Chujo: People need to be clear about why they are developing their abilities. It’s important to define a career path and goals, based on what you want to be, on your own terms, not according to the standards or framework of your company. It’s also increasingly important to have a sense of wonder, to nurture your sensibilities, aesthetic sense, and curiosity in day-to-day life.

Kaji: According to surveys in other countries, greater labor mobility results in higher lifetime earnings, and when workers stay with a company (rather than changing jobs) they earn higher wages when the company practices work engagement. The government believes that if labor mobility becomes easy in Japan, companies will be forced to raise wages.

Wada: In the Japanese labor market, only a third of the people who change jobs earn more in their new job. Since there is a mismatch between information and jobs, and between people’s abilities and the skills required by companies, using AI to bridge these gaps should increase the well-being of individuals. We also encourage employees to take on side jobs. Many who do report that this has helped them to reskill. I think we need to create a world in which individual value and abilities are suitably appreciated not just within a single company, but also beyond it in the wider society.

Inoue: Can AI enhance the well-being of workers?

Kaji: Yes. Using AI to deal with problems that need to be handled administratively saves time. That extra time can be used for enjoyment, relearning, or developing new interests, which enhance well-being. Of course, it takes some effort to discover these things, but that is part of the fun.

Chujo: I agree, but to increase well-being, it is important for companies to do their part by strategically considering the division of roles between humans and AI, by promoting a greater understanding of neuroscience and psychology to harness human abilities, and by implementing human resource training to foster initiative, creativity, and passion.

Wada: I think we need to think about how people can use AI to enhance their well-being. In our work, for example, only humans can play the role of emotionally supporting people. It is essential to leave whatever can be entrusted to AI to AI, so that we can focus better on the work that only humans can do. That’s how we can generate the most value as individuals.

Shinoda: How are well-being and career ownership for individuals connected? In workplaces where traditional Japanese-style employment practices still prevail, there may be a sense that exposure to changes, such as individuals deciding their careers entirely on their own, may reduce well-being.

Tanaka: I’ve come to realize that the Japanese model of lifetime employment tends to cause mental fatigue. Thinking about career and well-being involves the weaving and rebuilding of new relationships between individuals and organizations. Without accepting that employees can live as “pluralistic selves” and adapt to different environments, it’s impossible to keep talented people at a company.

Amano: In the coming years, it will be increasingly important for companies to feed employees with information on a daily basis through dialogue, to prepare them for tackling any kind of challenge that arises. Career ownership and employee’s own purpose are the starting point for this. As part of this push, for the past three years, we have implemented “Purpose Carving” to help define clear career paths for individual employees.

Kitamura: We provide our employees with something we call a “Rise Compass.” In addition to moving higher within the group, employees freely set themselves career milestones and goals, such as becoming the CXO of a company or launching a new separate business outside the company. As a company, we then support them in attaining those goals. This initiative both helps the individual to build a fulfilling career and promotes growth for the company.

Shinoda: From the viewpoint of organizational management, how do you regard well-being and career ownership?

Kitamura: Well-being is the foundation of our management policy. We need a proper dialogue with employees to ensure that both sides recognize each other’s obligations and rights. Since sufficient investment in employees is vital for sustainable growth, we openly disclose a variety of information in the style of balance sheet (BS) management. At the same time, we strive to stay true to our systems and culture.

Amano: Our employees and the company are now on an equal footing. By connecting as equals, based on autonomy and trust, employees generate value and grow continually through their own efforts as they contribute to the company’s purpose. The company provides them with an appealing opportunity for growth, which is reflected in rewards. The well-being of the two sides canonly be realized if they are united by a strong bond.

Shinoda: It can’t be easy for a company that has been doing things the old way to enter into the new world of these two companies. What should a company that is just starting the transition do?

Tanaka: They have to start with the basic assumption that well-being does not arise spontaneously. To be successful, it is essential to define what kind of well-being is desired within what time frame, and then incorporate that in a management strategy. It is precisely because our approach is driven by career ownership, with detailed specifications and information disclosure, that we are able to achieve well-being in the process of conducting our business.