Artificial intelligence (AI) is reshaping financial leadership worldwide, and in Japan, this transformation comes with unique challenges and opportunities. Kyriba’s recent global CFO survey, which includes insights from 250 Japanese CFOs, sheds light on how financial leaders view AI’s role in finance. The survey explores AI's strategic benefits while addressing hurdles like security concerns and regional challenges.
For both Japanese and global CFOs, a significant theme that emerges is the “trust gap,” where concerns about data security, accuracy, and ethical risks prevent organizations from fully unlocking AI’s potential in finance. Despite this gap, financial leaders in Japan are increasingly recognizing AI’s potential to drive strategic growth, improve decision-making, and address challenges such as labor shortages and economic risks. From tradition to innovation, here's an in-depth look at how AI is transforming finance in Japan and redefining the CFO role.
Key trends in Japanese AI adoption
CFOs highlight security concerns with AI adoption and use: 68% of Japanese CFOs report major concerns about security and privacy risks in AI, with issues like data leaks, accuracy, and regulatory compliance hindering confidence in adoption.
CFOs plan to embrace AI for strategic initiatives: Japanese CFOs are leveraging AI solutions for high-level tasks such as risk management (29%), strategic planning (28%), and enhanced decision-making (28%), shifting its role from operational efficiency to driving core priorities.
AI drives evolution in financial leadership: AI is reshaping CFO roles, with 44% emphasizing AI as a skill they think is increasingly important for future CFOs to learn.
Note: The global survey gathered insights from 1,000 CFOs at companies generating $100M+ in revenue, with 250 respondents from Japan. Many survey questions prompted respondents to select more than one answer. Due to rounding, percentages may not always appear to add up to 100%.
The trust gap hinders Japanese AI adoption
Similar to the global survey results, CFOs in Japan express significant concerns about adopting and using AI in finance, with trust issues rooted in security, privacy, and ethical challenges. The distrust in AI solutions is understandable, as there is the potential for AI to misinterpret data or numbers. However, with strong human oversight and the right safeguards, CFOs can use AI-powered tools to improve treasury operations.
When asked to identify the biggest challenge related to adopting AI in treasury and finance departments, it’s clear that building trust in AI systems is a significant barrier to adoption. Japanese CFOs identify issues related to security and ethics as their number one concern (30%), followed by allocation of resources (18%) and lack of existing tech infrastructure (17%).
When considering AI use in their finance operations, one-third (33%) of Japanese CFOs highlight employee perception as the top concern, followed by implementation (32%), accuracy (31%), regulatory compliance (31%), and the security/leaking of confidential information (30%).
Top Japanese CFO concerns about AI use in finance
Interestingly, employee perception ranks seventh in the global survey, but it takes the top spot in Japan when it comes to factors that slow AI adoption.
"One reason why employee perception ranks as #1 in Japan relates to a workplace culture deeply rooted in collaboration and mutual respect. Japan’s group-oriented decision-making approach ensures that technological changes, like AI implementation, are introduced in ways that foster harmony and collective growth. This careful and inclusive process builds trust, allowing employees to view AI as an enabler of their roles rather than a disruptor, reinforcing a human-centric approach to innovation.
To address these trust concerns, Kyriba has developed our Trusted AI framework. Trusted AI emphasizes security, transparency, and ethical practices, ensuring AI solutions align with organizational values and foster confidence in their adoption."
-Yoko Otsu, Managing Director, Kyriba Japan
While the promise of AI is undeniable, the survey findings show a critical need for AI systems to prioritize security and accountability to build trust among employees and stakeholders. This trust gap extends to broader organizational risks, with 68% of Japanese financial leaders ranking security and privacy as critical external challenges, alongside inflation/cost of living (73%), market volatility (73%), and interest rates (67%).
These concerns demonstrate that CFOs are cautious about AI-specific risks while also viewing security as a broader organizational challenge. The consequences of this distrust are profound. If security and privacy concerns remain unaddressed, organizations may find it challenging to unlock AI's full potential.
Establishing trust through robust security measures is crucial to bridging this gap. By adopting comprehensive security protocols, CFOs can adopt AI with confidence, using it to drive innovation, enhance decision-making, and effectively manage the complexities of modern finance. Without these measures, the trust gap will persist, hindering AI adoption.
“AI-focused skills will empower finance professionals to confidently work with AI technologies and bridge the trust gap by ensuring decisions made by AI systems are transparent and understandable. … By combining human expertise with AI's analytical capabilities, organizations can make more informed decisions.”
-Morné Rossouw, Chief AI Officer, Kyriba
Explore the full interview in our global CFO survey.
Overcoming caution to unlock AI's potential in finance
While the challenges surrounding AI adoption are significant, its potential to drive financial resilience and innovation is undeniable. Once CFOs can trust AI-powered solutions, they can unlock many opportunities and benefits, such as greater operational efficiency, more accurate financial insights, and extra time to focus on strategic initiatives.
Despite pressing concerns, Japanese CFOs recognize the transformational potential of AI:
81% feel at least somewhat prepared to adopt AI technologies in treasury and finance operations.
92% prioritize AI integration in their business operations.
25% of Japanese CFOs are leveraging AI in the majority of their financial decision-making processes, showing a more cautious approach than their counterparts in the US (56%), UK (50%), and France (36%).
The pace of AI adoption in Japan reflects a deliberate and strategic approach. Only 16% of Japanese CFOs plan to integrate AI into their treasury and finance operations within the next 12 months, compared to 36% globally. This percentage gradually increases, with 45% aiming for adoption within the next one to two years. This cautious progression points to Japan's focus on aligning AI integration with long-term organizational priorities while addressing unique cultural and operational challenges.
Although Japanese CFOs are taking a measured approach, they clearly recognize the significant benefits of AI. By leveraging its capabilities, businesses enhance their agility to respond effectively to challenges like market volatility, inflation, tariffs, and geopolitical uncertainties. Notably, 41% of Japanese CFOs already consider AI their top tactic for navigating these external pressures.
The Japanese CFO survey results reveal increasing enthusiasm to leverage AI for improvements and innovations in financial operations. When asked what excites them about the potential of using AI in finance operations, Japanese CFOs highlight:
What excites Japanese CFOs about AI’s potential in finance
As organizations evolve to embrace AI-driven financial transformation, they stand to increasingly benefit from enhanced efficiency, accuracy, and compliance, while also driving cost-effectiveness and revenue growth in financial operations.
Both the global and Japanese survey findings send a clear signal that CFOs increasingly see the value of leveraging AI to enhance decision-making and drive strategic growth. When asked how their organizations plan to use AI for treasury operations throughout 2025 and into 2026, Japanese CFOs cite:
How Japanese CFOs plan to use AI for treasury operations
These survey results indicate a shift in how CFOs perceive an AI-powered approach. Rather than viewing it solely as a tool for basic automation and operational efficiency, the majority now see it as a driver for high-level strategic transformation. For organizations slow to adopt AI models, there is a clear risk of falling behind.
Balancing tradition and innovation in Japan
Japan’s approach to AI adoption showcases its reputation as a technological leader, with significant advancements in robotics and AI-powered hardware. For instance, AI-driven customer support systems and robotic nursing assistants are being deployed to address societal challenges like labor shortages and an aging population. Businesses are optimistic about AI's potential to enhance productivity, with some expecting reduced workforce needs through automation. Additionally, AI is playing a critical role in addressing Japan’s cybersecurity skills gap by streamlining threat detection and protective measures. These initiatives underscore how Japan leverages AI to tackle pressing economic and demographic challenges while maintaining its technological standing.
However, significant obstacles hinder broader AI adoption in Japan. Cultural cautiousness toward rapid technological shifts–driven by concerns over data privacy and misinformation–has slowed acceptance, particularly among older generations. Japan also faces technical challenges, such as restricted data availability and limited domestic AI software development capabilities. These factors contribute to the country's use of foreign-developed AI models, including generative AI software. This situation highlights the urgent need for stronger local innovation and more comprehensive education in AI technology. Despite these hurdles, Japan’s careful yet forward-thinking approach to AI integration aims to balance technological progress with societal priorities.
AI solutions shape the future of CFO leadership
An important takeaway from the Japanese CFO survey is AI’s role in reshaping CFO responsibilities. From automating repetitive tasks to enabling data-driven decision-making, AI-based solutions are redefining what it means to be a CFO.
When asked about the factors expected to drive the most significant transformation in their roles over the next five years, Japanese financial leaders underscore the challenge posed by the trust gap. CFOs rank the frequency and impact of security incidents (39%) first, followed closely with a tie between the influence of AI (38%) and C-suite succession (38%). Additionally, 34% cite workforce shifts, such as retirement, turnover, and generational differences. These workforce concerns are likely tied to Japan's aging population and its effects on the labor market.
“Traditionally focused on compliance and reporting, CFOs are now becoming strategic advisors. AI reduces transactional tasks, enabling us to interpret predictive insights and guide long-term strategies. The role is evolving from number-crunching to connecting data with broader organizational goals.”
-Adam Drew, CFO, Kyriba
Explore the full interview with Adam Drew in our global CFO survey.
Like their global counterparts, Japanese CFOs are also anticipating a future where AI literacy becomes a core competency. When asked what skills they think are increasingly important for future CFOs to learn, they cited AI/tech skills at 44%, right behind risk management at 47%.
Again, the Japanese survey findings reveal the tension of the trust gap. The results show that Japanese financial leaders are prioritizing AI and technology skills as essential for staying competitive, while also emphasizing the importance of security and risk management.
These findings signal a growing recognition among Japanese financial leaders that AI algorithms will be a pivotal force in shaping the future of financial leadership, driving innovation and redefining traditional roles to meet the demands of a rapidly changing economic environment.
AI adoption transforms finance
The Japanese CFO survey results illustrate how AI tools are fundamentally transforming CFO responsibilities in Japan, from streamlining operations to driving strategic decision-making. Yet, this transformation comes with challenges, particularly the significant AI trust gap related to the safety and security of data. These factors, combined with the workforce shifts driven by an aging population, create a unique and complex landscape for Japanese financial leaders.
Despite these obstacles, Japanese CFOs are showing a deliberate and strategic approach to integrating AI into treasury operations, recognizing its immense potential to foster innovation and resilience. Bridging the trust gap through robust security measures and investing in AI literacy will be crucial for unlocking its full potential. By balancing innovation with careful planning, the trends in Japanese AI adoption show CFOs are poised to lead their organizations through a rapidly evolving financial future.
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