With Japan’s shrinking workforce due to its aging population, companies are ramping up their investments in IT.
In addition to improving operational efficiency with fewer employees, businesses are advancing remote work policies and reskilling initiatives.

2025 is shaping up to be a pivotal year where talent strategy and IT adoption become the two main drivers of corporate growth.

This article explores how IT investment and workstyle transformation are helping companies overcome talent shortages.

The Turning Point of 2025: Aging Workforce Sparks a Wave of Digital Transformation

By 2025, Japan's labor force is expected to decline further due to demographic shifts.
As the baby boomer generation reaches 75, labor shortages—particularly in healthcare and eldercare—are becoming critical (Source: RIETI).

In response, companies are expanding IT investment to automate and streamline operations.

In retail, for example, unmanned checkouts and AI-driven demand forecasting are rapidly being adopted to reduce reliance on human labor. In the service sector, cloud-based systems are being used to centrally manage tasks like customer service, reservations, and inventory.

But this is more than just reducing headcount—it is about enabling small teams to produce big results.

“Work From Anywhere” Becomes the Norm: Productivity Innovation Through IT and Flexible Workstyles

Companies are going beyond automation by leveraging IT to create more flexible and employee-friendly work environments.

To support remote work and flexible hours, more organizations are adopting cloud-based attendance management systems and digital communication tools.

A growing trend is for urban companies to hire skilled talent from rural areas through remote work, expanding access to quality talent and increasing organizational strength.

Online training platforms and digital manuals are also enabling faster onboarding of inexperienced employees.

Ultimately, IT is empowering businesses to break free from location-based constraints, expanding their ability to attract and utilize talent—even in a declining population.

Reskilling in the AI Era: Why Talent Development is Critical to Competitive Advantage

Japan’s talent shortage isn’t just about headcount—it is about a lack of people with the right skills.

There is an acute shortage of professionals in fields like:

• Artificial Intelligence (AI)
• Cloud infrastructure
• Cybersecurity
• 
  

To close this gap, companies are increasingly turning to reskilling programs.

For example, many are now offering in-house training for employees with no IT background, teaching them programming, data analysis, and digital tools.

The rise of low-code/no-code platforms is also helping non-engineers to build business applications, further expanding internal capabilities.

Looking ahead to 2025 and beyond, companies are expected to shift from “buying expensive talent externally” to “building skills internally.”



Balancing talent development with smart IT adoption is becoming essential for improving both productivity and long-term competitiveness.