In today’s fast-changing financial landscape, artificial intelligence is emerging as a critical catalyst—not just for efficiency, but for redefining business models. David Runacres, President for Asia Pacific at Broadridge, shares how AI is reshaping Japan’s financial sector. He explores how demographic shifts, workforce constraints, and mounting innovation pressures are driving Japanese institutions to accelerate digital transformation and usher in a new era of AI-driven leadership.
Rethinking Readiness: Pragmatism Meets Urgency
Artificial intelligence is no longer an emerging trend, it’s an urgent business imperative. Nowhere is this clearer than in Japan, where the leadership challenge is not simply about staying current, but about redefining what’s possible for financial institutions facing deep demographic headwinds.
Having worked in technology and financial services across Asia for decades, I’ve seen Japan’s measured approach to adoption time and again. This nation generally favors proven solutions over headline hype. Yet with AI, I’m witnessing a shift: Japan’s financial sector is more willing to experiment and iterate than with any other technology in recent memory.
This change is driven by necessity. The skilled workforce is shrinking, and the pipeline of new talent can’t keep up with the industry’s evolving demands. While other markets may leverage AI to sharpen competitive edge, here in Japan we’re relying on it simply to keep the wheels turning, to close the operational gaps that demographics have created. In fact, our 2025 Digital Transformation & Next-Gen Technology Study reveals that 71% of APAC firms are making moderate to large investments in GenAI this year, as firms recognize the urgency of staying both efficient and relevant.
AI as a Force Multiplier for Human Capital
The question I hear most from boardrooms is not whether we should adopt AI, but how quickly we can embed it to offset resource limitations. Many Japanese institutions are already using AI for tasks traditionally dependent on manual effort—summarizing vast volumes of research, translating global insights into Japanese context, and surfacing actionable findings that would have otherwise required armies of analysts. It’s not simply about efficiency; it’s about sustaining the business as the pool of skilled people contracts.
At Broadridge, we’ve seen firsthand how AI adoption boosts productivity without compromising compliance or risk controls. Our joint venture with the Tokyo Stock Exchange powers investor communications for more than 90% of Japan’s listed companies.
Applying AI, we’re able to condense complex disclosures and engagement materials into clear, concise formats—supporting both issuers and investors as they navigate increasingly complex corporate landscapes. In this way, productivity and compliance advance together, demonstrating the real-world benefits of smart AI adoption.
Governance and Trust: Building AI on a Solid Foundation
While I’m optimistic about the progress we’re making, I remain clear-eyed about risk. Errors from AI systems, especially in regulated environments, can be hugely consequential. No amount of automation will ever supplant the need for rigorous human oversight. That’s why we’ve chosen to implement controlled sandboxes, ensuring that sensitive decisions remain in human hands, and our teams are continuously trained to understand both the capabilities and the boundaries of advanced AI.
In Japan, managing this balance is non-negotiable. We cannot allow innovation to outpace robust risk frameworks. Responsible AI means strong governance, transparent processes, and a persistent human touch. Our 2025 study points out that 44% of APAC firms say legacy technology and systems are limiting their resiliency strategy, and 56% are grappling with operational resiliency challenges, highlighting the need for strong governance and smart modernization.
Looking Ahead: Shaping the Next Chapter of Financial Innovation in Japan
Looking ahead, the priorities for Japan’s financial sector are clear. Accelerating AI adoption in core operations is critical to address labor shortages and drive true productivity gains. But capturing value requires more than implementing new technology; it means investing in broad-based upskilling, embedding AI expertise across the organization, and maintaining disciplined oversight as adoption scales.
The key will be striking the right balance between leveraging proven, global AI models and adapting them to Japan’s unique market realities. This demands a pragmatic approach that is fast, disciplined, and always anchored by trust.
At Broadridge, we are committed to partnering with financial institutions to execute on this agenda. Our focus remains on delivering resilient, compliant solutions that drive measurable results—for today and for the next generation of market challenges. Now is the time to move from theory to action and set a new industry standard for AI-driven growth and efficiency in Japan.