Human Capital Formation in Japan in the Age of AI (Individuals)

◆In this series of reports, titled “Human Capital Formation in Japan in the Age of AI,” which will be divided into three sections, we present specific strategic perspectives and action plans in relation to the question of how to develop human capital and ride the waves of change in this new era marked by the arrival of AI and the transformation of Japanese-style employment.

◆This first report focuses on individuals and summarizes strategic perspectives and action plans for proactive career planning and human capital formation. Specifically, it discusses the relationship with AI, learning strategies utilizing AI, and practical points for each stage of life.

◆The impact of AI on individuals is not uniform. Therefore, individuals should categorize their own situations into one of the following three groups: “AI coexistence and utilization group,” “AI replacement risk group,” or “AI minimal impact group,” and respond strategically. The AI coexistence and utilization group is expected to treat AI as a strategic partner and aim to enhance human-specific value. The AI replacement risk group should review their skill inventory and implement a phased skill shift centered on portable skills. Even the AI minimal impact group must not neglect future preparedness and efficiency improvements in peripheral tasks, keeping in mind the discontinuous progress of technology.

◆Generative AI has the potential to become a powerful tool for accelerating individual learning, but it is essential to understand the risks involved, such as hallucinations (the phenomenon of AI generating information that is not based on facts), and to develop the literacy to use it wisely with critical thinking. At the same time, while building on foundational cognitive abilities, it is increasingly important to strengthen higher-order skills – unique human capabilities that AI cannot easily replicate – and metacognitive skills, which involve the ability to learn the method of learning itself. Additionally, participating in learning communities that foster collaborative learning with others contributes to deepening learning and building human networks.

◆At each stage of live, students are required to build a foundation as AI natives and engage in autonomous exploration, young and mid-career professionals must enhance their ability to adapt to change through deepening their expertise and developing multiple career tracks, and skilled professionals are expected to create unique value by integrating their experience capital with AI. Embracing change as an opportunity and maintaining a self-directed approach to learning will be the key to opening up new possibilities for the future.