Artificial intelligence (AI) is a technology seen as key to future developments by economic and political decision-makers in Japan. In April 2024, the Japan Business Federation published a report with policy suggestions that acknowledged AI as a driver of economic growth and suggested that Japan should become an AI and robotics superpower to overcome its labor shortages. The Japanese government considers AI one of the central elements that will contribute to “Society 5.0,” a vision of society in which the physical space and cyberspace are increasingly interconnected. The anticipation surrounding AI has led to increased research activities among institutions and private enterprises. The
has grown strongly since 2014, leading up to what has been called Japan’s third AI boom.
High market growth anticipated
Among the
leading companies based on the number of AI-related patent applications are many of Japan’s major technology corporations, such as Fujitsu, Nippon Telegraph and Telephone (NTT), Canon, Hitachi, Toyota, and NEC. Many of the companies engaging in related research are active in the automotive, robotics, and electronics industries, where AI can be utilized for tasks such as autonomous driving and industrial automation. Artificial intelligence also plays a vital role in
smart devices and smart home technology, which are supposed to make people’s daily lives more convenient and enhance the energy efficiency of products. The
AI systems market, which includes software, hardware, and services, was valued at about 685.9 billion Japanese yen in 2023. It is expected to grow significantly in the coming years and reach a size of more than 2.5 trillion yen by 2028.
Implementation of AI at companies
Since AI is expected to perform many tasks that so far have been performed by humans, it is expected that its implementation at companies will have wide-ranging effects on
employment in Japan. One important factor to consider in this regard is the future
demographic development, as the Japanese population is expected to age further and shrink significantly in the coming decades. Next to alleviating labor shortages, the implementation of AI is also thought to help companies in reducing costs and improving efficiency. AI can be utilized, for example, to forecast demand and sales figures, analyze customers, and optimize inventory. Expectations are also high in the case of generative AI, which can produce new content, such as texts, images, and sound. While there is hope that AI will fill in for a lack of professional skills and knowledge, take over simple and inefficient tasks, or will be helpful in making objective and logical decisions, 43 percent of respondents in a survey on the
expected changes of one’s own work due to generative AI answered that they think that they will lose their jobs to AI, showing that people's perception of this transformative technology remains ambivalent.
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