The Smiling Supermarkets of Japan

AEON, a Japanese supermarket chain, uses AI to assess employees' smiles and service attitude.,The system, called "Mr Smile," has sparked debates about workplace harassment and customer satisfaction.,AI and AGI technologies are transforming the service industry in Asia, raising questions about ethics and employee well-being.

In the bustling world of Asian retail, artificial intelligence (AI) is making waves in unexpected ways. Japanese supermarket chain AEON has recently adopted an AI system to assess and standardise its employees' smiles. This innovative yet controversial move has reignited debates about workplace harassment and the role of AI in the service industry. Let's dive into the fascinating world of AI-driven customer service and explore the implications of this technological shift.

AI is revolutionising the way businesses interact with customers. From chatbots to personalised recommendations, AI technologies are enhancing customer experiences across various industries. In Asia, the adoption of AI in customer service is particularly notable, with companies like AEON leading the charge. Our article, APAC AI in 2026: 4 Trends You Need To Know, delves deeper into these regional developments.

AEON's Smile-Gauging AI

AEON has become the world's first company to use AI to measure the attitudes of customer-facing employees. The system, called "Mr Smile," was developed by the Japanese technology company InstaVR. It analyses over 450 elements, including facial expressions, voice volume, and tone of greetings, to rate a shop assistant's service attitude accurately.

The system also incorporates game elements, encouraging staff to improve their attitudes by challenging their scores. AEON reported that service attitudes improved by up to 1.6 times over three months during a trial in eight stores with about 3,400 staff members.

The Goal: Standardised Smiles

AEON's goal is to "standardise staff members' smiles and satisfy customers to the maximum." However, this policy has sparked concerns over workplace harassment, especially from customers. Known as "kasu-hara," customer harassment is a serious issue in Japan, with nearly half of the 30,000 staff surveyed by Japan’s biggest union, UA Zensen, reporting experiencing it. For more on the structured governance models influencing such policies in the region, see North Asia: Diverse Models of Structured Governance.

Criticisms and Comparisons

Critics argue that forcing employees to smile according to a standard is another form of customer harassment. One respondent said, "Smiles should be a beautiful, heartfelt thing, and not be treated like a product." Another noted, "People are different, and they also express their affections differently. Using a machine to ‘standardise’ people’s attitude sounds cold and silly."

The strategy has been compared to McDonald's "Smile zero yen" campaign, which has been questioned for adding a burden on low-paid employees. After Japan’s Ministry of Health, Labour and Welfare published a manual against customer harassment in 2022, companies were urged to maintain service standards without sacrificing staff well-being. This aligns with broader discussions on Japan: Principles-Led Governance with Strong Industry Input.

Ethical Considerations of AI in the Workplace

The use of AI in the workplace raises important ethical questions. While AI can enhance efficiency and customer satisfaction, it can also lead to increased pressure on employees. Balancing the benefits of AI with the well-being of staff is a critical challenge for companies.

The Impact on Employee Well-being

AEON's "Mr Smile" system highlights the potential for AI to exacerbate workplace stress. Employees may feel pressured to conform to AI-dictated standards, leading to burnout and dissatisfaction. Companies must consider the psychological impact of such systems on their staff.

The Role of Regulation

Regulation plays a crucial role in ensuring that AI technologies are used ethically. Governments and industry bodies can set guidelines to protect employee rights and prevent misuse of AI. Japan's manual against customer harassment is a step in the right direction, but more needs to be done to address the complexities of AI in the workplace. Research from organisations like the International Labour Organization (ILO) provides valuable insights into the future of work and AI's impact on it.

Innovative Approaches to Customer Service

While AEON's approach has sparked controversy, other innovative strategies have been well-received. For example, a supermarket in Japan’s Fukuoka prefecture implemented an extra-slow checkout counter for elderly and disabled customers. This measure not only showed consideration for these customers but also increased sales by 10 percent, according to Asahi TV.

Designing an AI-Driven Customer Service System

To create a customer service system that balances AI efficiency with employee well-being, companies must consider both technological capabilities and human factors.

Prompt

Design an AI-driven customer service system that enhances customer satisfaction without compromising employee well-being. Include features that promote a positive work environment and respect individual differences.

The Future of AI in Asia

The future of AI in Asia is bright, with countless opportunities for innovation. However, companies must navigate the ethical challenges that come with these technologies. By prioritising employee well-being and adhering to ethical guidelines, businesses can harness the power of AI to create a better future for all.

By delving into the world of AI in customer service, we can better understand the transformative power of these technologies and the challenges they present. As AI continues to evolve, it is crucial for businesses to strike a balance between innovation and ethics, ensuring a brighter future for both customers and employees.

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