Understanding Sales Cycles in Japan for AI Startups: What You Need to Know

By Mike Kim, Founder of Gradient Consulting

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It's often said that sales cycles in Japan take longer. But what does this really mean for AI startups selling in Japan? More importantly, how long are enterprise sales cycles in Japan, and how can AI startups accelerate the sales process in this unique market?

Why Do Enterprise Sales Cycles in Japan Take Longer?

The business culture in Japan and its decision-making process are highly structured and methodical, contributing to longer enterprise sales cycles in Japan. Unlike in some Western markets, where deals can be closed based on a strong business case alone, Japanese enterprises prioritize long-term relationships, credibility, and consensus over speed.

The Role of Trust and Relationship Building in Japanese Enterprise Sales

Trust and respect are essential to business culture in Japan, and they play a key role in enterprise sales cycles in Japan. I’ll illustrate this point with a story.

One of my favorite restaurants in Tokyo to take Japanese business leaders is a place called Cedros in the trendy area of Daikanyama, run by two brothers Lui and Yui. At one particular dinner with a senior Japanese executive, well into our conversation, he shared something that struck me. He said he had done his due diligence on me before our dinner meeting. He told me he had heard that I was a kind and honest person and that these traits were essential for doing business at a high level in Japan. It was clear that trust and integrity weren’t just personal values to him—they were essential criteria for forming any business relationship.

This conversation made me realize that building trust in Japan isn’t just a passive process—it’s often a structured, even deliberate, prerequisite for doing business. This is a crucial insight for AI startups selling in Japan: establishing credibility and fostering trust with key decision-makers takes time, but it’s also a necessary step before meaningful discussions can move forward. One way to accelerate that process is by leveraging consultants or advisors who already have established trust with key stakeholders.

How Long Are Enterprise Sales Cycles in Japan for AI Startups?

So back to our original question: How long do enterprise sales cycles in Japan typically take for AI startups?

It is true that Japanese business culture and processes take longer, and trust and respect are fundamental to building strong relationships—both of which require time to develop. However, while enterprise sales cycles in Japan may take longer compared to other markets, the flip side is that Japanese customers tend to be among the most loyal. Japan revenue is often “sticky,” with customers maintaining long-term commitments—sometimes resembling annuities—making it an attractive market for AI startups.

One major reason why things can take time is the concept of nemawashi (literally meaning “turning the roots” but often translated as “laying the groundwork”). In Japan, enterprise sales are not about pitching a product to a single decision-maker who can unilaterally say yes. Instead, deals must go through a structured internal approval process, where multiple stakeholders align behind a decision before a contract is signed.

For AI startups, this means that selling in Japan requires a strategic and patient approach. To navigate enterprise sales cycles in Japan effectively, AI startups should focus on:
✅ Identify the right stakeholders, including economic buyers and internal champions who can advocate for you.
✅ Establish trust and credibility early by understanding Japanese sales cycles, demonstrating a deep understanding of Japanese business culture and industry-specific challenges.
✅ Navigate the internal approval process by proactively supporting your champions with the right sales enablement tools, case studies, and localized content.

While trust, relationship-building, and nemawashi are key factors in the sales process, Japan also has an existential need for AI and innovation—driving significant digital transformation. While Japanese enterprise sales cycles can be longer, they can also be surprisingly fast in the right conditions. In the past year alone, I’ve seen multiple AI deals close within just five months from the first point of contact. In one case, an AI solution went from the first meeting with the economic buyer to a signed contract in just two months and five days—which is incredibly fast by any standard when dealing with companies with over 100,000 employees and 5-figure or 6-figure first deals. 

The Bottom Line: AI Startups Can Sell Quickly in Japan

While enterprise sales cycles in Japan are often considered longer, AI startups can close deals faster when the right conditions align. I’ve personally seen deals close in as little as five months when the right conditions are in place.

Success depends on finding:

• The right timing – when Japanese enterprises have a clear need and budget.

• The right business units – teams or departments that will directly benefit from your AI solution and have the authority to influence decision-making and drive adoption.

• The right people – internal champions who understand your technology, speak English, and can push decisions forward.

• The right companies – businesses that are open to working with foreign startups especially in AI and that can support business in English.

While enterprise sales cycles in Japan can take longer than in other markets, when the right conditions align AI startups can accelerate their sales cycles in Japan and close deals faster. The key is engaging with the right companies, the right business units, and the right stakeholders—those who have a clear need, the necessary budget, and the influence to drive internal adoption. When these factors align, Japanese customers can become long-term, high-value partners, making Japan revenue feel more like an annuity rather than a one-off transaction—providing much-needed revenue stability for AI startups.

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