Japan, an Island country in East Asia, is making big plans to lead the world in artificial intelligence. They are aiming to become the most AI-friendly nation by taking an approach by creating policies, improving technology and encouraging innovation. But can Japan really build the perfect environment for AI to thrive?
The 2024 AI White Paper that has called for Japan to become the “world’s most AI-friendly country” highlighted how important it is to keep investing in AI research and development. Japan has quickly caught on to the AI wave, drawing attention from top global investors.
For example, start-up Sakana AI, with backing from Nvidia, raised $137 million, reaching a $1 billion valuation in just over a year. You might also be interested to know that OpenAI’s Sam Altman has set up a new office in Tokyo, while Amazon Web Systems has committed to a 2.26 trillion yen investment in Japan’s cloud infrastructure. All these show how focused is Japan on AI development.
If you are following the latest trends, you will find it interesting that 82 percent of businesses in Japan have already implemented full or partial AI solutions, either in pilots or full use. To give you some perspective, this is much higher compared to 61 percent in the United States, 55 percent in Europe, and 50 percent in Australia and New Zealand. It's clear that Japan is pushing ahead in AI deployment, setting the pace for the rest of the world.
But there are still concerns. Japan’s governance model might leave its businesses behind on the global stage. To tackle these concerns, the government has rolled out the Hiroshima AI Process to ensure "safe, secure, and trustworthy AI." They have also created an AI Strategy Council to address any negative perceptions.
Japan is shifting its approach to artificial intelligence by adopting a lighter regulatory framework. The ruling Liberal Democratic Party (LDP) emphasizes minimal interference in AI governance, aiming to encourage innovation and attract talent and investment. Japan’s policies are intentionally less strict compared to regions like the EU, focusing on supporting competition and growth instead of imposing heavy regulations.
Such a shift actually shows Japan’s support for AI initiatives. This has changed the perception of the people of Japan. A PwC survey found that in early 2023, only 10 percent of people used generative AI tools like ChatGPT, but this jumped to 73 percent within just six months. Japanese companies are embracing this trend, with NEC developing an AI system called Cotomi and start-up Preferred Networks working on customized chips for generative AI.
On the public side, the city of Yokosuka was the first in the country to test ChatGPT for administrative tasks, showing AI’s increasing role in Japan’s future.
Microsoft Japan President Miki Tsusaka believes that Japan's fast adoption of AI can really improve its economy and the IT sector. She pointed out how quickly Japan digitized during the pandemic and how remote work helped close some technical gaps. You might find it interesting that Tsusaka sees generative AI as a solution to challenges posed by the country’s aging population and workforce.
Microsoft's commitment is evident with its $2.9 billion investment in AI data centers over the next two years. This investment is aimed at enhancing the utility and industrial sectors, driven by a positive outlook on technology. Tsusaka also highlighted that it’s crucial to integrate cybersecurity with AI adoption.
As for Japan's future AI regulations, there are still discussions underway. While there might not be strict laws, at least the government is considering its options. In the meantime, Japan’s AI-friendly policies are leading to innovative technologies, like Carelogy’s AI software, CatsMe!, which helps detect discomfort in cats with over 95% accuracy. This shows how AI can make a real difference in everyday life.
Thus, it is inferred that Japan is working hard to become the world's most AI-friendly country. They are focusing on research, attracting global talent, and creating new policies. With all these advancements and more people using AI, Japan is on the right track to lead in AI.