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August 17, 2025 • 13 mins

🎙️ In this episode of Executive Search in Japan, we explore the promise and pitfalls of Artificial Intelligence in Japan’s executive search industry. While AI offers powerful tools for automating candidate discovery, reactivating dormant talent, and enabling dual-language screening, Japan’s recruitment culture adds unique complexity.

From low LinkedIn adoption and kanji parsing errors to cultural expectations around trust, humility, and "wa" (harmony), global AI tools often struggle in the Japanese context. We unpack where AI enhances efficiency—and where it risks damaging relationships, misreading résumés, or reinforcing bias.

We also spotlight a few firms innovating in this space, share anecdotes of AI tools lost in translation, and offer practical advice for headhunters navigating this technological shift.

Whether you’re a recruiter, HR leader, or executive candidate, this episode will give you a grounded look at how AI is being applied—carefully and cautiously—in one of the world’s most relationship-driven hiring markets.

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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Tessa Sourceley (00:00):
Welcome to another Deep Dive.
Today, we're plunging into,well, a really fascinating
paradox, Japan.
You know, a nation grapplingwith one of the most severe
labor shortages on the planet.
Yet when it comes to executiverecruiting, a surprising number
of cop tier candidates are whatsome people call offline
qualified.

Chase Stratton (00:19):
Right.
Meaning they're just notvisible online in the usual
places.

Tessa Sourceley (00:22):
Exactly.
So how on earth does cuttingedge artificial intelligence
navigate a market like thatwhere, you know, professional
humility often means activelyavoiding social media and
finding that next big leaderoften comes down to these sort
of whispered referrals andquiet, established connections,
it seems like a real clash.

Chase Stratton (00:41):
It absolutely can be.

Tessa Sourceley (00:42):
So our mission today is really to give you a
clear, culturally groundedperspective on what AI can, and
maybe more importantly, cannotdo in Japan's executive search
market.
We'll explore how firms arelearning to embrace this
powerful tech ethically andstrategically, get ready to
unpack how technology clasheswith, and sometimes, maybe
surprisingly, complementscenturies of tradition.

(01:03):
OK, so with that pretty complexbackdrop, How exactly is AI
beginning to make inroads?
I mean, in a market desperatefor talent, what are the core
ways AI is quietly reshaping howsearch firms operate in Japan,
even for those really high-tierexecutive roles?

Chase Stratton (01:19):
Yeah, it's interesting because
traditionally AI in recruitingwas often seen more for, let's
say, high volume, maybeentry-level hiring.
But in Japan, we're seeing ittailored now for executive
search specifically.
Practically speaking, AI isbeing used for things like
automated resume parsing andmining private databases.
This is key for unearthing whatwe call dormant high potential

(01:41):
candidates.

Tessa Sourceley (01:42):
Ah, okay.
People not actively looking,but who could be a great fit.

Chase Stratton (01:45):
Precisely.
Then you've got naturallanguage processing, NLP models,
and these are specificallytrained on both Japanese and
English job descriptions, whichhonestly is a significant
technical feat.

Tessa Sourceley (01:55):
Why is that such a hurdle?

Chase Stratton (01:56):
Well, think about the nuances of Japanese.
You've got multiple writingsystems, kanji, hiragana,
kana-kana.
Often the word breaks.
Standard NLP models reallystruggle with with that.
Beyond that, firms areleveraging predictive analytics,
trying to gauge leadershippotential, assess culture fit,
Oh, that's a tricky one we'llprobably get into.

(02:16):
Definitely.
And even predict retentionrisk.
And for those passivecandidates, you're seeing
chatbots and CRM integratedoutreach tools being used more
to reactivate them sort of atscale.

Tessa Sourceley (02:29):
That sounds incredibly efficient on paper, a
real potential game changer.
But I'm guessing it's not quitethat simple in the Japanese
context, right?
What are these unique culturaland linguistic roadblocks that
challenge this seemingly perfectsolution, especially for
finding top talent quickly when,like you said, executives often
You're

Chase Stratton (02:47):
absolutely right.
It's far from simple.
While global firms mightaggressively adopt AI, Japan
presents these unique structuraland cultural challenges that
just fundamentally alter thedynamics.
One of the biggest culturalones, LinkedIn penetration.
It's tiny.

Tessa Sourceley (03:00):
Really?
How low are we talking?

Chase Stratton (03:01):
Only about 2.5% of Japan's population is on
LinkedIn.
Compare that to over 50% in theU.S.
And it's often intentional.
Many senior Japanese executivesactively avoid social media.
It's seen as a form forprofessional humility almost.

Tessa Sourceley (03:17):
Wow.
2.5 percent.
That's striking.

Chase Stratton (03:20):
It really is.
And we've seen this play out.
There's this thing called theLinkedIn ghost town problem.
I remember hearing about aforeign recruiter who launched
this big AI driven LinkedIncampaign.
Total flop.
Because most of the targetedexecutives just didn't have
active accounts.
The AI flagged them as inactiveor maybe even unqualified, not
because they weren't suitable,just invisible online.

(03:41):
It really highlights that forexecutive search in Japan, a
digital footprint just isn't areliable indicator of
qualification.
Relying solely on it means theAI is basically flying blind for
top talent.

Tessa Sourceley (03:51):
OK, so that's the digital side.
What about the more traditionalcultural factors?

Chase Stratton (03:56):
Right.
Then there's WAI.
This deep cultural emphasis onharmony, long-term
relationships, and numawashi,that's the behind-the-scenes
consensus building.
Hold algorithmic outreach.
It can feel incrediblyintrusive, even disrespectful in
that context.

Tessa Sourceley (04:09):
I can see that.

Chase Stratton (04:10):
Executive hiring often relies on these whispered
referrals, private backchannels, trust.
It's not about the algorithmfinding a match.
And crucially, Japanese firmsoften have conservative
expectations of recruiters.
They expect you to knowcandidates personally or through
highly trusted networks.
Showing up with a listgenerated purely by a predictive
model, especially forhigh-stakes roles.

(04:31):
It's often met with skepticism.

Tessa Sourceley (04:34):
So the AI might find someone technically
qualified, but culturally?

Chase Stratton (04:37):
Exactly.
There's a telling story sort ofdubbed AI versus Nimawashi.
A recruiter used an AI tool,right, and flagged candidates
with very direct, assertivecommunication styles as top tier
for a senior role, you know,decisive leaders.
But the client rejected theentire list.
Because they valued quietconsensus building.
That Nimawashi style.

(04:59):
Harmony.
The AI completely missed thatcrucial cultural preference.
It just shows AI's currentlimits in understanding those
really subtle cultural valuesand communication styles that
are paramount in Japaneseleadership.

Tessa Sourceley (05:12):
Fascinating.
And what about the languageitself?
You mentioned NLP challenges.

Chase Stratton (05:16):
Oh, yeah.
The linguistic side is huge.

Tessa Sourceley (05:18):
Yeah.

Chase Stratton (05:18):
Kanji, the complexity.
It's a massive challenge forWestern AI systems.
They struggle with Japanesenaming conventions, the
different honorifics, the sheernuance.
We've heard about the Mr.
Suzuki kanji chaos.
A Western AI misclassifiedmultiple candidates because
their kanji names look slightlydifferent in various fonts or
documents.

Tessa Sourceley (05:37):
Oh, wow.

Chase Stratton (05:38):
Yeah.
Or it couldn't distinguishbetween several common names
like Suzuki Takashi.
Some AI still mix up surnameand give a name order.
Imagine getting an emailaddress, Dear Takashi-san
Suzuki.
It's awkward.
And then there's the technicalstuff.
Some Western AI tools literallycan't recognize full width
Japanese characters.
They just cause parsing errorsor drop resumes entirely.

Tessa Sourceley (05:57):
Especially with those unique Japanese resume
formats.

Chase Stratton (06:00):
Exactly.
The Rikisho, it's oftenhandwritten, follows this very
strict, specific format.
Almost like a template.
Columns for education, familydetails sometimes.
Very different from thefreeform CVs AI is usually
trained on.
AI just wasn't built for thatkind of structure, really.

Tessa Sourceley (06:16):
It's incredible how these cultural and
technical details layer up, andit definitely brings up some
significant ethicalconsiderations, doesn't it?
Especially thinking aboutJapan's robust legal framework
around personal data.
What are the key ethicalminefields here?

Chase Stratton (06:31):
That's a really critical point.
Japan has the APPI, the Act onthe Protection of Personal
Information.
It's quite strict.
It tightly regulates how AIsystems can process, store,
analyze candidate data.
Consent is huge.
And one major ethical concernis bias.
If the AI is trained mainly onWestern or, frankly, non-diverse
data sets, it might completelymisunderstand Japanese work

(06:52):
histories or educational paths.

Tessa Sourceley (06:53):
Or even life circumstances.

Chase Stratton (06:55):
Precisely.
There was this incident, the AIthinks I'm unemployed incident.
An accomplished femaleexecutive took a sabbatical for
Kaigo that's elder care, verycommon in Japan.
The AI screening system flaggedher as unemployed for too long.
She even joked that the AIdidn't recognize caregiving as
actual work.
Forget rest and recharge leave,let alone Kaigo.

(07:15):
It just shows the AI'sinability to grasp these
culturally specific situations.

Tessa Sourceley (07:20):
That's a perfect example of cultural
blindness in the algorithm.

Chase Stratton (07:23):
Absolutely.
Then there's opacity, the blackbox problem.
Many Japanese firms are deeplyuncomfortable with AI making
decisions they can't understandor explain, especially when
their reputation or high-leveltrust is on the line.
Consent and transparency arevital too.
Japan's candidate culturereally values privacy.
Unsolicited algorithmicassessment done without clear

(07:43):
disclosure.
That can breach social norms,maybe even legal ones, under
APPI.

Tessa Sourceley (07:48):
And the potential for misinterpretation
seems high.

Chase Stratton (07:50):
Very high.
AI can easily misread indirector nuanced expressions common in
Japanese communication, whetherin CVs or interviews.
Leads to poor matches.
There's a slightly funny,slightly horrifying anecdote
about a headhunter's bot got toopersonal.
An AI generated an outreachmessage in Japanese.

(08:11):
It included the phrase, Yes,Sri.
Seize your eyes, Frigg.
Which means?
Roughly, your background isvery ordinary.
The AI apparently thoughtordinary meant consistent and
was intended as a compliment.

Tessa Sourceley (08:24):
Oh.
Yeah.

Chase Stratton (08:25):
Needless to say, the candidate did not reply.
It just highlights, you know,the AI is only as culturally
fluent as the humans whoprogrammed it and the data it
learned from.

Tessa Sourceley (08:33):
Okay.
So if we pull this alltogether.
It's clearly not that AI isuseless in Japan, but it needs
to be used, what, strategically?
Where does it providesignificant value in Japanese
executive search and where doesit really fall short?

Chase Stratton (08:45):
Exactly.
It's about strategicapplication.
AI is valuable for reactivatingthat dormant talent pool within
private databases.
That's a goldmine, like wesaid.
It's also excellent forsupporting bilingual searches.
The dual language screening isa real plus.
And for structuring large poolsof, say, mid-level leadership
talent.
Automating outreach cadencesfor mass shortlisting,

(09:07):
especially maybe for more juniorexecutive roles, that's another
area where it really helps withefficiency.

Tessa Sourceley (09:12):
Right, the efficiency game.

Chase Stratton (09:13):
Yeah, it really struggles to assess cultural
fit.
That deep nuance of Japanesecorporate environments.
AI isn't there yet.
Understanding a candidate'sability to navigate those
vertical hierarchies.
Internal politics, Nemawashi,again, that's crucial for
executives.
And AI has trouble with it.
Evaluating subtle communicationcues in an interview, still
very much a human strength.

(09:33):
And critically, AI simplycannot navigate back channel
referencing.
Those quiet checks areabsolutely irreplaceable for
vetting executives in Japan.

Tessa Sourceley (09:41):
So those efficiency gains are clear for
certain tasks.
But earlier you mentioned thatresistance to cold algorithmic
outreach.
How do you do firms actuallyreconcile that need for scale,
maybe using AI for outreach withthe absolute necessity of that
personal trust based approach,especially for dormant
candidates?
So what does this all meanpractically for search firms, HR

(10:04):
teams in Japan or, you know,anyone looking to recruit top
executives there?
How do they navigate thesepromises and pitfalls?

Chase Stratton (10:10):
Yeah, that's the core tension, isn't it?
The key message really is don'ttreat AI as a replacement for
human judgment.
Treat it as a complement todeep local market expertise.
And the human element.

(10:31):
Absolutely central.
Train your human consultants.
They need to know how tointerpret AI outputs in light of
the cultural context.
Use AI for efficiency gains,sure.
Database mining.
Initial screening, maybe.
But keep candidate engagementrelationship building, and the

(10:52):
final vetting process firmlyhuman-centric and establish
crystal clear protocols aroundconsent, data storage, and
fairness.
Again, APPI demands it, butit's also just good practice.

Tessa Sourceley (11:04):
It sounds like this isn't just theory.
You mentioned some firms arealready doing this, blending the
tech with that essential localinsight.

Chase Stratton (11:10):
Oh, yes, definitely.
We're seeing firms in Japanactively doing this now.
For example, there'sExecutiveSearch.ai, also known
as Headhunt.ai.
They build themselves asJapan's first AI-first executive
search firm, but theyexplicitly fuse their
proprietary software withpersonal sourcing.

Tessa Sourceley (11:25):
Interesting blend.

Chase Stratton (11:27):
Then you have Remote Recruit from the company
Remote.
They use AI for sourcing andinsights, but it's specifically
designed for Japanese firms,including multi-language
filters.
Even the big traditionalplayers are adapting.
RGF executives search Japan,for instance.
They set up a dedicated AI andnew technologies team.
They're embedding tech intotheir high-level recruitment.

Tessa Sourceley (11:48):
So established firms are evolving, too.

Chase Stratton (11:50):
Absolutely.
And look at Recruit Holdings, amassive player in Japan's
recruitment scene.
They're integrating AI acrosstheir platforms, like Indeed
Plus.
And they're reportingsignificant Okay, so...

Tessa Sourceley (12:18):
To kind of wrap up our deep dive today, AI
clearly offers undeniableefficiency gains, potential
scale.
But in Japan, where trust,nuance and those deep human
relationships are justparamount, its success seems to
hinge entirely on its ability toadapt to rather than try to
override these deeply ingrainedcultural practices.
Is that fair?

Chase Stratton (12:38):
That sums it up perfectly.
Adaptation, not replacement.
Augmentation, not automation ofthe core human elements.

Tessa Sourceley (12:45):
Right.
And, you know, as AI continuesto evolve at this incredible
pace, it really makes youwonder, doesn't it?
Will the future of executivesearch ultimately be defined by
technology's ability to somehowmimic human intuition?
Or maybe, maybe by our wisdom,to apply technology only where
it truly serves, especially inthese culturally rich, complex
environments like Japan.
It leaves you with a thought,maybe.

(13:06):
In this relentless pursuit ofefficiency, what subtle,
invaluable human elements mightwe be overlooking?
And how do we ensure that AItruly enhances rather than
diminishes that vital humanconnection and professional
relationship?
Something for all of us toponder, I think.
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