Workplace-level labor-management dialogue on AI technology in Japan: functions and challenges of direct worker consultation

Purpose The purpose of this study is to clarify the functions and challenges of direct worker consultation as a form of labor-management dialogue regarding the use of AI technology and to present ideas for overcoming these challenges. Design/methodology/approach This paper analyzes transcripts from interviews with Japanese firms conducted in 2021–2022 in the financial and manufacturing industries. Findings The findings are as follows. First, in all Japanese cases, employees were engaged in AI development, and their input contributed to improving its performance. Second, briefing sessions, training programs, and internal communications were employed to inform employees of AI functions and use. Third, these sessions played a key role in alleviating concerns and fostering consensus. Fourth, direct worker consultations in Japan appear to fulfill functions similar to collective labor-management consultations in other countries. Finally, these consultations face challenges, including a limited functional scope and potential ineffectiveness. Practical implications In Japan, to overcome the challenges of direct worker consultations, collective labor-management consultations between labor and management representatives may be necessary despite the absence of a discernible impact of AI technology. Originality/value This is the first study to analyze direct worker consultations regarding AI technology in Japan and to present their functions and challenges as characteristics of the Japanese system.