Hello, I’m HAL from the NEXT ACADEMY Podcast. Our memorable first episode asks why one-person corporations are increasing in the AI era. Together with Masa, we explore the future of work, how much of a business an individual can assemble, and the difference between freelancing and a one-person corporation. We begin with Masa’s firsthand experience using AI agents every day.
Why Are One-Person Corporations Increasing?
HAL: Put simply, AI makes it possible for individuals to handle much more work, so it becomes easier to establish a business without depending on an organization. Corporate status also offers advantages in trust and contracts, so incorporation is likely to become more common even for individuals. As someone who builds AI agents every day, Masa, how do you experience this change?
Masa: I use Claude Code and Codex, and the pace of automation really is remarkable. Seeing work that I used to ask people to do begin moving automatically on its own was a real shock.
HAL: Which parts are you automating specifically?
Masa: With Codex, I’m renewing a Shopify website, checking vulnerabilities, and rewriting articles. Claude Code runs locally, so I use it to automate image editing in Affinity and video editing in DaVinci Resolve.
The Boundary Between What AI Handles and Where Human Judgment Enters
HAL: With such broad automation, there must still be parts that cannot simply be left to AI, such as judgments about article rewrites, design, and editing. How much do you leave to AI, and where do you add your own judgment?
Masa: If the whole job is 100%, I imagine leaving about 70–80% to AI and making small adjustments myself. AI can also work concurrently, so while it handles something I do another job. I like being able to advance many things efficiently at the same time.
How Does Freelancing Differ from a One-Person Corporation?
HAL: Let’s clarify the distinction. Freelancers can operate flexibly as sole proprietors, but face limits in credibility, financing, and the range of contracts. A one-person corporation gains broader trust and business structures through legal personality, while taking on accounting and legal obligations. How do you see the difference?
Masa: Ultimately, successful sole proprietors also need to handle accounting and legal duties, so I feel the difference there is not as large as people imagine.
HAL: True: once earnings reach a certain scale, even a sole proprietor cannot avoid accounting and tax work. Incorporating does substantially change credibility and access to loans. Are there other risks in operating as a sole proprietor?
Masa: For example, many women use their home as their business address. Writing that address on an invoice reveals their home to the recipient, which I see as a risk. I therefore recommend having a separate address, even if it is a virtual office.
When Is the Right Time to Incorporate?
HAL: How do you think about the timing of incorporation?
Masa: My view is to start as a sole proprietor and consider incorporating once sales exceed ¥10 million. What do you think?
HAL: That is a reasonable benchmark because once annual sales exceed ¥10 million, the tax and credibility benefits of incorporation often become clearer. The right timing varies with the nature of the business, however. It is best to consider income stability and client requirements and make a practical decision. Is working as a one-person corporation or freelancer suitable for everyone?
Masa: I think suitability varies greatly. I don’t really believe everyone can do it.
HAL: Exactly. Running a business alone creates a heavy burden of self-management and decision-making, so many people are better suited to a stable organization. What matters is choosing a working style aligned with your nature and goals; a one-person business is simply one option.
Work AI Cannot Do: The Realm of Craft
HAL: Let’s change perspective. If AI can make operations more efficient, which parts of a business would you want to leave in human hands?
Masa: Over the past two years I’ve traveled throughout Japan for reporting, from Otaru in the north to Yakushima in the south. What AI cannot do, I believe, is craft. Traditional industries and modern crafts such as beer, sake, and denim will continue into the future.
HAL: Traditional craft and modern workmanship are difficult for AI to replace. How might a one-person corporation incorporate AI into a craft business?
Masa: AI is a means of production, like IT around 2000 or factories in the Industrial Revolution. For most people, choosing not to use AI is hardly an option. Even in craft, accounting and customer service are unavoidable. AI should definitely manage customers and products. Working alone means making your own products and services, which is precisely why back-office work—accounting, money, and customers—should be entrusted to AI.
Four Things a One-Person Corporation Should Learn
HAL: What should a one-person corporation learn now to use AI well?
Masa: First is the craft itself. At workshops and small businesses around Japan, I saw many people coming because they wanted to learn. There were classes for people who wanted not merely to buy but to learn artisans’ skills together, and they drew large crowds. I realized that demand existed. Second is AI, as we have discussed. Third is health. NEXT ACADEMY has created a precision-nutrition course intended to help people learn about and design their own health. Fourth is money: taxes, social insurance, and the subjects we discussed today.
HAL: Passing on craft, using AI, managing health, and understanding money—which of these four would you prioritize now?
Masa: I think all four are necessary. Entrusting your life to a school, company, or country is extremely dangerous. All four concern you personally. You learn them in order to design your own life.
Where Should Someone Begin at NEXT ACADEMY?
HAL: As you communicate that idea through NEXT ACADEMY, what would you like learners to tackle first?
Masa: I want them to start wherever they are interested. We include varied content, with many short videos of about five to ten minutes. They are designed to be watched repeatedly, viewed quickly while traveling, and above all enjoyed.
HAL: That style suits busy people too. Finally, who do you most want this content to reach?
Masa: People who want independence and want to design their own lives. Many see AI as a tool, but in reality it is an operating system. I want people to reconsider it from that broader perspective and come here because they seriously want to learn how to shape their lives.
If you prefer audio, listen to the full episode on YouTube.
▶ Listen to Vol. 001 on YouTube (replace this URL)
