Tokyo, Japan — In a bid to counter the demographic challenges arising from a declining birth rate and an aging population, Japan is strategically advancing towards a future driven by digital technology and revolutionary AI tools. Recognizing the pivotal role of AI, experts emphasize the need for a collaborative effort involving entrepreneurs, companies providing financial resources, and supportive government policies.
Japan’s historical economic success post-World War II stems from its unique approach of fostering collaboration between industry and government. This synergy has propelled Japan into a leadership position in major global industries. Now, as the nation faces a shrinking workforce, it is embracing a digital transformation fueled by AI, presenting opportunities for both domestic and foreign companies to contribute to this industrial revolution.
AI Applications Across Various Sectors
The healthcare sector, grappling with critical staff shortages due to an aging population, is a primary target for AI applications. Changing perceptions toward AI are evident in a PricewaterhouseCoopers (PwC) survey, revealing a significant jump from 10% to 73% in the usage of generative AI, like ChatGPT, among Japanese companies within six months.
Japanese companies, such as NEC and Preferred Networks, are actively developing enterprise-focused generative AI systems and custom AI chips for industries like manufacturing and healthcare. The city of Yokosuka has emerged as a pioneer, conducting a trial of ChatGPT for administrative operations in the public sector.
Global Collaboration and Government Initiatives
Major global players, including Nvidia, the leading AI chip manufacturer, are eyeing opportunities in Japan. Nvidia plans to establish a research lab, invest in local start-ups, and collaborate with Japanese partners to build an AI tech-related ecosystem.
Japan’s government is actively supporting AI integration, outlining plans for a national institute to ensure the safety of AI technologies. The Ministry of Economy, Trade, and Industry emphasizes the transformative potential of generative AI, urging companies to leverage it not only for operational efficiency but also for gaining a competitive edge by transforming products, business models, and corporate structures.
Leaders from Japan and the G7 nations have launched the “Hiroshima AI Process,” aiming to establish common principles for safe, secure, and trustworthy AI. Japan’s initiatives underscore the collaborative nature of addressing the challenges posed by rapidly evolving AI technology, with a focus on working alongside countries, corporations, and entrepreneurs worldwide.
Spearheading this movement, Sega Cheng, co-founder and CEO of iKala, applauds Japan’s proactive stance, noting the government’s swift actions in terms of regulation compliance and research funding. Japan’s journey into the realm of AI is poised to shape the future landscape of technology, economy, and societal development.