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Japan Invests in AI for Economic Growth

According to Japanese media reports, Japanese Prime Minister Shinzo Abe held the 8th 'Japan Growth Strategy Meeting' at the Prime Minister's Office on October 1. He referred to artificial intelligence (AI) as an 'accelerator' for promoting Japan's economic growth, and urged the government to accelerate the social application of high-performance AI.

According to the meeting details published by the Japanese Prime Minister’s Office, Naomi Kōshishi said, "The social application of high-performance AI is indispensable for achieving our country's growth strategy." She asked relevant ministers to propose concrete plans by the end of the year. These plans include establishing an "AX (AI Transformation)" model that utilizes "trusted AI" to drive society as a whole, promoting related regulatory and institutional reforms, and developing action plans to accelerate the social application of AI.

Ota said that Japan's economy is at a “fork in the road” regarding whether it can establish a “virtuous cycle” of sustained growth. Facing competition among countries in terms of industrial policies, the Japanese government plans to drive domestic investment through public investment and increase the potential economic growth rate. The government will develop a “Japan Growth Strategy Implementation Plan” by the end of the year, outlining the path of domestic investment for the next five years.

In the key industries planned by the City of Kōchi, AI and semiconductors are one of the 17 strategic areas. "Physical AI" is also listed as a key development direction. Physical AI refers to the integration of AI with physical systems such as robots and industrial equipment, enabling machines to make autonomous decisions and take actions based on the real environment. The City of Kōchi has previously stated that it hopes Japan will develop new industrial competitiveness in areas like "Physical AI."

On September 25th, during the awarding ceremony for the Japan Startup Awards, Governor Ko said that “physical AI” was a key area of interest. He mentioned that AI, including physical AI, along with semiconductors, defense industries, and aerospace sectors are strategic areas where the Japanese government wishes to increase domestic investment.

Recently, the Gao municipal government also proposed to accelerate the application of AI in industries where there is a severe shortage of labor, such as healthcare, nursing, transportation, and construction. It also aims to promote the adoption of AI among small and medium-sized enterprises in Japan.