More than 80% of Japanese companies are using artificial intelligence only in limited parts of their operations or not at all, a Reuters survey showed, underscoring a gap between strategic spending plans and practical adoption. About 60% said AI is used only in some departments or in other limited ways, 18% have not decided whether to introduce it into the workplace, and 6% are not considering adoption. Only 16% said AI has been deployed company-wide as an integral tool. Even so, no surveyed company expects to reduce its AI budget over the next one to two years: 4% foresee annual growth of 50% or more, 21% expect increases of 10% to 50%, 30% project single-digit growth, 14% expect spending to stay largely unchanged, and 31% remain undecided. Reuters said the poll, conducted by Nikkei Research between July 29 and August 6, drew 219 anonymous responses from 510 companies contacted. Responses suggest current AI use is concentrated in support functions such as document drafting, meeting minutes, legal contract review, data aggregation, software development and trial production-line optimization, with Microsoft Copilot frequently mentioned. A government report earlier this year showed Japan trailing other major economies in generative AI use for at least one task, at 86.4% versus 98.1% in China, 91.6% in Germany and 90.9% in the United States. The poll also showed 82% of respondents prefer domestic investment over overseas investment, broadly aligning with Prime Minister Sanae Takaichi's strategy of boosting spending at home in AI, semiconductors and quantum technology. Looking ahead to the business year ending March 2027, 41% said they would increase domestic investment from a year earlier, 9% expected a decline, and 50% planned no change.